UK Retail's £27B Returns Crisis Spurs Smart Messaging Adoption

LONDON, UK – January 15, 2026 – While the festive season brought a welcome surge in sales for UK retailers, the new year has ushered in a familiar and costly hangover: a mountain of product returns. This annual challenge has escalated into a financial crisis, with recent data from Retail Economics predicting the cost of non-food online returns could soar to over £27 billion in 2024. Faced with eroding profit margins and logistical nightmares, retailers are now urgently seeking technological solutions, with advanced, rich messaging channels emerging as a powerful new weapon in their arsenal.

Global cloud communications platform Infobip is highlighting Rich Communication Services (RCS) and WhatsApp as critical tools to stanch the bleeding. The company argues that by transforming how brands interact with customers before, during, and after a purchase, these platforms can directly address the root causes of returns and streamline the entire post-purchase experience.

The High Cost of Customer Convenience

The £27 billion figure represents more than just a line item on a balance sheet; it signifies a complex web of consumer behaviours and operational strains that are testing the limits of the modern e-commerce model. A significant portion of this burden is driven by a small but impactful segment of shoppers. Research shows that "serial returners," who make up just 11% of customers, are responsible for nearly a quarter of all online returns, costing the industry an estimated £6.6 billion.

These shoppers often engage in opportunistic tactics like "buy-to-try," where multiple sizes or colours of an item are ordered with the full intention of returning most of them, or "wardrobing," the practice of wearing an item once before sending it back. Compounding the issue are "slow returners," who, combined with their serial counterparts, account for almost half of all returns. These delays are particularly damaging in fast-fashion, where a product returned weeks later may have missed its peak selling window and must be heavily discounted.

Generational habits further complicate the picture. Younger shoppers, particularly Gen Z, are more likely to over-order and take significantly longer to send items back compared to older generations. This behaviour not only complicates inventory management but also increases processing costs and the risk of stock becoming obsolete. For retailers, what began as a policy to encourage online sales has become a significant threat to profitability.

A New Channel for Customer Dialogue

To combat this growing challenge, technology providers are advocating for a shift from passive, one-way communication to an active, conversational relationship with customers. Rich messaging platforms like RCS—the next generation of SMS—and the globally popular WhatsApp are at the forefront of this movement.

"Each year we see retailers impacted by the burden of managing post-Christmas returns," said Kim Johal, Retail Specialist at Infobip. "By offering richer communications, including high-quality images, and facilitating two-way conversations, RCS and WhatsApp are helping retailers to address the leading causes of returns and streamline the returns process.”

The strategy is threefold. First, it aims to mitigate pre-purchase uncertainty. Instead of relying on static website images, retailers can use RCS and WhatsApp to send customers high-resolution photos, 360-degree product videos, and even interactive sizing guides directly within the messaging app. This helps customers make more informed decisions, reducing the likelihood of returns due to mismatched expectations.

Second, the engagement continues post-purchase. Brands can proactively send personalised care instructions, styling tips, or usage guides, enhancing the customer's connection to the product and minimizing returns that stem from perceived issues or buyer's remorse. Finally, for unavoidable returns, these channels offer a seamless, user-friendly process. Customers can initiate a return, generate a digital QR code label, and receive real-time tracking updates all within the same chat thread, encouraging timely returns and reducing administrative overhead.

"RCS and WhatsApp are emerging as an indispensable components of an omnichannel communication strategy, empowering retailers to drive efficiency across marketing and customer service," Johal continued. "This approach leverages new technologies that provide greater transparency and efficiency throughout the customer journey, crucial for improving margins and building trust with consumers.”

The Broader Tech Arsenal Against Returns

Rich messaging is a key part of a wider technological arms race as retailers fight back against the rising tide of returns. Many are now deploying a suite of tools to better understand and influence customer behaviour. Artificial intelligence and data analytics are being used to analyse purchasing patterns and predict which items are most likely to be returned, allowing for smarter inventory decisions. Some apparel brands are experimenting with augmented reality (AR) and virtual try-on tools to give customers a better sense of fit before they click "buy."

In the communications space, a competitive ecosystem of platforms is offering solutions. While some focus on specific aspects of the journey, the overarching trend is toward integrated, omnichannel engagement. Customer service platforms like Zendesk are integrating with specialised returns management solutions to automate support tickets and improve efficiency. According to one industry analyst, advanced messaging systems are poised to become a "secret weapon for brands" that prioritize building trusted, secure, and highly personalized customer interactions.

Adoption and Impact in the UK Market

The theoretical benefits of rich messaging are now being proven in the marketplace, with adoption rates in the UK accelerating rapidly. A major catalyst has been Apple's decision to support RCS on iPhones with its iOS 18 update, a move that created a unified rich messaging ecosystem across both Android and iOS devices. Following this, major UK mobile operators, including Three UK and Virgin Media O2, have fully embraced the technology for business messaging.

Data shows these channels are remarkably effective. RCS messages are reportedly 35 times more likely to be read than traditional SMS, and case studies demonstrate significant performance lifts. The online retailer FragranceNet.com, for example, saw a 106% boost in click-through rates and a 50% increase in conversions after implementing branded RCS campaigns with image carousels.

Meanwhile, WhatsApp has solidified its position as a preferred channel for UK consumers, with over 40% stating they would rather use it to contact customer service than make a phone call. Major high street brands, including John Lewis, Next, and M&S, have already integrated WhatsApp and chatbots to enhance their service offerings, seeing dramatic improvements in response times and effectiveness. This shift reflects a fundamental change in consumer expectations, where instant, convenient, and personalised communication is no longer a perk, but a baseline requirement for a positive retail experience.