Retail’s returns nightmare to get worse following the holidays

New York - Over 1.5 million packages would be returned on December, 19 alone in the U.S., a day dubbed “National Returns Day.” The early spike will be led by consumers who got a jump on online shopping in the days before Black Friday — a move that is kicking off the earliest holiday returns season ever.

‘UPS Pulse of the Online Shopper’ study, revealed earlier this month that even if in years past, National Returns Day occurred in early January and represented the highest spike of packages for the entire year, now returns are still expected to hit 1.3 million packages on January, 3.

This will now represent the second wave of holiday returns: UPS expects to deliver 800 million packages this holiday season.

Similarly, Optoro, a D.C.-based technology company that helps retailers and brands optimize their returned and excess inventory, found that 97 percent of consumers are more likely to buy something again from a retailer with which they had a positive returns experience.

Online returns from the holidays hurting retailers

Conversely, 89 percent of customers will not shop again at a retailer or brand where they had a negative returns experience. The top elements of a great returns experience include an easy-to-return online experience and a no-questions-asked policy.

“Leading retailers and brands understand that the returns moment is an increasingly important time to drive future customer loyalty and engagement,” said Tobin Moore, co-founder and CEO of Optoro.

Optoro’s study also revealed that 75 percent of consumers have shipped returns back to the retailer; 79 percent of e-commerce shoppers said free shipping on returns is important when selecting an online retailer; 44 percent said the top issue encountered when returning an item online is paying for return shipping.

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