Black Friday sales at risk from hidden delivery fees

Hidden delivery and returns charges could put £4.64 billion of UK online Black Friday sales at risk, according to Locus. The estimate is based on survey findings suggesting shoppers often abandon purchases when extra costs appear late in the checkout process.

The logistics software company found that 55% of shoppers would abandon a purchase if delivery or returns costs were revealed only at checkout. The same share said they would walk away if they had to pay to return an item. Its analysis used last year's reported Black Friday-to-Cyber Monday online spending of £3.8 billion as a benchmark for the possible scale of lost sales.

The findings add to pressure on retailers competing for online spending in a growing market. Official retail data showed online spending rose 6.8% year on year in September, while some retailers have introduced broader price assurances for Black Friday shoppers.

Locus surveyed 1,000 UK adults and found that 59% judge whether a Black Friday deal is worthwhile by the total cost, including delivery and returns, rather than by the advertised discount alone. A further 62% said they were more likely to complete a purchase when delivery and free returns were included in the advertised price.

The research also suggests there is a limit to how far discounting alone can shape consumer decisions. Nearly half of respondents, 46%, said they would choose a retailer with a better returns policy even if the product itself cost more.

Total cost

The results suggest shoppers now treat fulfilment and returns terms as part of the headline price rather than as an add-on at the final stage of a transaction. That creates a challenge for retailers trying to protect margins while still presenting offers that look competitive at first glance.

British shoppers spent £3.8 billion online across the four days from Black Friday to Cyber Monday last year, according to Locus, which argued total spending could have reached £8.4 billion if fewer customers had dropped out because of unexpected charges. On that basis, it estimated that up to £4.64 billion in sales may have gone unrealised.

The figure is an extrapolation from survey responses rather than a direct measure of transaction data, but it underlines the commercial importance of checkout design and returns policy during peak trading periods. Retailers have spent years refining Black Friday discount strategies, yet the findings indicate that fulfilment terms can influence conversion as much as sticker price.

Competition in the sector already reflects that shift. Very has launched a Price Promise across all shopping categories, allowing customers to claim back the difference if a product is reduced further before early December.

Retail response

For retailers, the issue is not simply whether to cut prices further, but whether the final amount paid by the customer matches the offer first presented. Unexpected fees can make a promoted bargain look less attractive and may push shoppers to compare alternatives with clearer or more generous terms.

This matters especially in categories with higher return rates, such as fashion, where free returns have become an established part of the online shopping proposition. In those segments, charging for returns or revealing fees late in the process can quickly alter purchasing behaviour.

"When shoppers see a Black Friday discount, they are weighing up how much of that saving they will benefit from once delivery and a possible return are factored in. Retailers cannot assume that a large percentage off will persuade someone to overlook charges imposed at the final step, making the purchase more expensive than they expected.

"Retailers need to rethink the discount psychology behind their Black Friday promotions as shoppers assess the whole transaction. Delivery and returns influence whether the discount works in the first place, so their cost needs to be understood before the offer goes live. Better delivery planning gives retailers more room to put together a deal that remains worthwhile through checkout and that they can fulfil profitably," said Nishith Rastogi, Founder and Chief Executive Officer at Locus.