SmallBizGenuis, By Vladana Donevski, February 07,2022
According to the National Retail Federation’s survey for 2020 and 2021, retail returns skyrocketed to over $760 billion in value. This places a significant strain on “reverse logistics” companies.
- US consumers have been sending back unprecedented volumes of unwanted goods. It takes nearly two-thirds of the average item’s price to process its return to the shelves. Since customers can often return items for free, this eats into already slim profit margins.
- Online shopping revenue grew by 43.5% between 2019 and 2021.
- eCommerce stores offer generous return policies. Some of them are extending return windows to up to three months to accommodate early shoppers returning Christmas gifts after the holidays.
- The other option for these retailers is to allow their customers to keep the product and just get their money back.
To read the full article, please click here.