Maybe you got YET ANOTHER light-up Christmas tie, or maybe a fourth mug that says, “BEST MOM EVER.” Whatever it is, it has to go back, right? Tis the season, after all! Buuuuuuut, it might not be so easy this year. Or at least not so…free!
Online purchases skyrocketed during the pandemic, but as a result so did returns and it’s costing retailers a whole lot more to process them now so they’re starting to push back. Let’s see what’s going on.
Here are Five Fast Facts on free retail returns going away:
- 📈 High Rate Of Returns - Retail returns were 16.5% in 2022, up over 6% from 2020. The cost to retailers was over $800 billion. That’s a lot of unwanted mugs!
- 📦 It’s Intentional - Part of it is how buyers are operating nowadays. Almost two thirds of consumers say they order multiple sizes with the intent of sending back the item(s) that don’t work. This is up 55% from 2019.
- ❗❗ Who’s Doing It? Forty percent of all retailers, that’s who! Some of the big names doing it are Kohl’s, Dillard’s, J Crew, Urban Outfitters, American Eagle, and many more.
- 👍 Returnless Returns - The costs for returns are getting so high – almost 40% of the cost of the item itself – that some of the big dogs like Amazon or Walmart aren’t even requiring the return. They’re just giving refunds and letting customers keep the “returned” product. Um, can we “return” a Porsche? Just asking for a friend…
- 🤔 Options Incoming - This will likely change consumers’ buying habits, but we don’t yet know exactly how. Some experts suggest we might eventually start seeing tiered return levels or free (or at least discounted) returns only as part of a loyalty program. Time will tell.
🔥Bottom line: If you’re a stellar gift giver, then this likely won’t be a big deal to you or those around you. But if you regularly count on returning (ahem) oh-so-great gifts, it could be a complication you’ll see this holiday season. It would also put a major damper on your plans for retail rentals!
What do you think about free retail returns going away?
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