Did you know that return rates are as much as three-times higher for e-commerce purchases than for purchases bought in stores, and the overall rate of returns grows about 10% year over year? Last year consumers returned $380 billion worth of goods, and those returns cost a retailer much more than the initial free return shipping that many retailer/etailers now offer.
Returned and excess goods are often shipped five to seven times while a retailer searches for a second home, all the while depreciating in value. The shipping costs can be astronomical, and merchants are unable to recoup value lost in the return.
Although REKO’s clients aren’t on the same scale as Saks 5th Avenue or LL Bean as referenced in this Internet Retailer article, we all share some of the same problems. This article regarding Returns, now known as Reverse Logistics, contains some valuable insight and we think it’s worth a read.