Returning unwanted gifts this holiday season is becoming so expensive for retailers that they just might let customers keep the products — and issue refunds anyway.
: The cost of online returns is soaring, contributing to increased prices, product shortages and supply chain stress.: Returning a $50 item is expected to cost an average of $33, up 59% from 2020, according to Optoro, a returns processor.About three in 10 online purchases are returned, according to“The consumer pays the price of a free return,” Columbia Business School retail studies professor Mark Cohen, namely Amazon, sometimes tell returners to keep it.
It would cost them too much to process a return, Moore says.“There's tracking involved that will determine whether or not consumers are taking advantage of the system,” adds Moore.The challenge for online retailers is to process returns quickly and get the goods back onto their virtual shelves, minimizing depreciation.Yet online itemsDon’t shed any holiday tears for retailers, though. They just recorded a sales increase of 8.5% from Nov. 1 through Dec.