The period immediately following the holiday season sees an unprecedented surge in product returns, reaching up to three times the average volume, according to Lightspeed Commerce's analysis. This uptick poses challenges for retailers, making it crucial for shoppers to weigh free return policies when choosing where to shop.
The surge in product returns is indicative of shifting consumer habits, where buyers often resort to strategies like bracketing, purchasing multiple sizes or colors with the intent to return undesired items. Marcus Shen, CEO of B-Stock, underscores that this trend is facilitated by increasingly consumer-friendly return policies from retailers.
Shen noted that the increased ease of returning items due to liberal return policies has significantly contributed to the rising rate of returns, particularly as returns are projected to reach nearly 17% of total sales, a notable increase from previous years.
The financial implications of returns are significant for retailers, as they face not only the direct costs of processing returns but also the potential loss from markdowns when reselling items. Businesses are exploring incentives to minimize return costs while maintaining customer satisfaction.
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