Retail returns in US may amount to $761 bn for 2021: Report

Online returns are in line with recent years at an average of 20.8 per cent. According to NRF, online sales accounted for $1.050 trillion of total US retail sales last year. Approximately $218 billion of online purchases were returned, with $23.2 billion (10.6 per cent) deemed fraudulent.

“As total retail sales continue to accelerate from sustained consumer demand during the pandemic, it is no surprise that the overall rate of returns has also been impacted,” said Mark Mathews, NRF’s vice president of research development and industry analysis. “While retailers have indicated that they are seeing an increase in items returned to stores and online, the upside is that it also provides them with additional opportunities to connect further with customers and provide a positive experience.”

According to the survey, for every $1 billion in sales, the average retailer incurs $166 million in merchandise returns. It also found that for every $100 in returned merchandise accepted, retailers lose $10.30 to return fraud. The categories with the highest return rates include apparel, which was similar to 2020 metrics at 12.2 per cent. The most common types of payment used during the original purchase that led to a return were credit cards (22.78 per cent), cash (12.69 per cent) and debit cards (7.04 per cent).

“Retailers must rethink returns as a key part of their business strategy,” said Steve Prebble, CEO of Appriss Retail. “Retail is dealing with an influx of returned items. Now is the time to stop thinking of returns as a cost of doing business and begin to view them as a time to truly engage with your consumers.”

Earlier this month, NRF reported that retail sales during the November-December holiday season reached a total $887 billion, exceeding its forecast of up to 11.5 per cent growth. On average, retailers expect 17.8 per cent, or $158 billion, of merchandise sold during the holiday timeframe to be returned.

The survey of 57 retailers was conducted by NRF and Appriss Retail.

ALCHEMPro News Desk (KD)