[ad_1]
Holiday shopping is expected to hit record levels this year, but a significant portion of purchases are likely to be returned. Returns in 2024 are projected to make up 17% of all merchandise sales, totaling $890 billion in returned goods. This is up from 15% of total retail sales in 2023. Returns are particularly common during the holiday season, with retailers anticipating a 17% higher return rate than the annual average.
The rise in returns is attributed to online shopping habits, with many customers ordering multiple sizes or colors and returning the ones that do not fit. Additionally, the practice of “wardrobing” – buying an item for a specific event and returning it afterwards – has become more common. All of this back-and-forth comes with a cost, as processing a return typically costs retailers 30% of an item’s original price.
The environmental impact of returns is also a concern, as returned goods that do not end up back on the shelf often contribute to landfill waste. Retailers are implementing various strategies to manage returns more sustainably, such as buyback programs and reselling returned items as secondhand goods.
Return policies are becoming a significant factor in consumer behavior, with many shoppers considering free returns and a positive return experience when deciding where to shop. Retailers are adjusting their policies to accommodate these preferences, with some offering refunds without requiring the return of the product. Overall, managing returns effectively is crucial for retailers to maintain customer satisfaction and sustainability goals.
Photo credit
www.nbcnews.com
