If you have returned a gift because your doting Grandma gave you the same, slightly revolting oversized nylon jacket, you are not the only one. Holiday returns are part of the biggest retail season of the year. Retailers expect around 7 cents returned for every dollar of holiday sales during normal economic conditions. That number has risen as the economy has fallen, with projections rising to 9.9 cents per dollar for a total of $453 billion. Image may be NSFW.
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While are returns expected to climb after the holiday, this season has seen an increasing number of returns before Christmas has arrived. ”Buyers’ Remorse” is a big factor. Consumers got excited with all the Black Friday and Cyber Monday promotions and overextended themselves.
Stores have taken a variety of approaches, from reducing return windows to setting stricter guidelines on product conditions for return. Some have started customer loyalty programs to looks out for chronic returners.
The effect of early returns on ecommerce is not clear. There are difference return dynamics in play, in terms of shipping the product versus taking it to the store, and the delay that causes both in returning the product and receiving the refund.
The returned products are a both a hassle and an economic burden for retailers, but for etailers that sell returned goods from large stores at bargain prices, this could mean an influx of inventory.
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Has your business seen a spike in early returns?
Would you be more likely to return a product that you purchased online or in a store?
