1 in 5 online purchases are returned. How do retailers handle the influx of returns -- especially around the holidays?
The National Retail Federation, or NRF, estimates shoppers returned about 17% of their purchases in 2022, a whopping $816 billion in retail merchandise. Online, more than 1 in 5 purchases get sent back to retailers.
During the height of the pandemic, stores relaxed return policies to increase online shopping. Amazon lengthened the period for returns, as did Home Depot and Best Buy. "When people want to shop now oftentimes they will order a whole bunch of things in different sizes and colors," said Janell Townsend, a professor of marketing and international business at Oakland University.The NRF estimates $85 billion worth of goods were returned fraudulently in 2022.
"Retailers are really trying to figure out how they can allow consumers to return but also not have to shoulder all the expense," said Trae Bodge, a smart shopping expert.
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