Retail Returns: Addressing a Growing Challenge Head-On

摘要

As the rate of online shopping increases, retailers face the challenge of coping with a commensurate rise in the rate of returns. This is especially true for those who sell products that customers want to touch, feel and try on for size. About 10% of merchandise sold in the U.S. in 2018 was returned. Returns grew from $171.4 billion in 2007 to $369 billion in 2018, according to data from the National Retail Federation and Appriss. Disrupters like Amazon and other digitally native brands are forcing other retailers to offer costly, customer-centric policies such as free returns to remain competitive. Most retailers view returns as a necessary evil, or simply as a cost of doing business. As a result, this portion of the business often suffers from a lack of focus and investment. Many retailers lack the streamlined processes, reporting tools and tracking systems needed to effectively handle returns, let alone turn them to their advantage.