Retailer’s returns jump to 16.6 % in 2021 as Online sales surge. National Retail Federation and Appriss Retails records 6% hype from last year. It will add up to $761 billion in merchandise. The merchandise will travel back to the warehouse.
With the increase in online sales during the pandemic, retailers panic transfer goods. The returns surges with consumer’s buying goods online. Online shopping increased sales as it lacks visualization.
Online sales account for 23% of the total U.S. retail sales. It was $4.583 trillion as per the NRF. The returns on orders are currently a big headache. Retailers will have to make a decision to resell or send back.
The writing off goods will lead to loss. Retailers saw a 20.8% increase in the average rate of returns. It was 18.1% last year. The after-effects of sales were not necessary earlier. With the increase in online sales, the returns are no longer a primary problem.
Mehmet Sekip Altug, a business professor at George Mason University, demands serious measures. He gives the example of Warby Parker. It opened showrooms to make people better visualize. It also features waiving fees when a product bought online returns. The brand wants to bring customers to the stores.
Holidays will also increase the return on sales. They are expecting an increase of 17.8%. It will account for $158 in merchandise sales. It comes from the month of November and December. Holiday sales expand to 14.1% year over year. Also, it hit a record $886.7 billion.
There are categories that record more returns. Auto parts are one of them. It records 19.4 % on average. However, apparel and clothing hold returns of 12.2 %. And housewares and home improvements to an average of 11.5%.
There are companies like Amazon which came up with tactics. They are accepting returns but also telling us to keep some products. They are trying to get rid of the cost of shipping back and processing bulky.
