The Christmas holiday is coming to an end, and the "Return January" in the United States is coming.
The National Retail Federation predicts that returns are expected to account for 17% of all merchandise sales in the United States, with the total value of returns reaching 890 billion US dollars.
Notice that the report from the National Retail Federation shows that holiday spending this year hit a historical high. However, after Christmas, the peak shopping season is coming to an end, and the busiest return period of the year is also approaching.
The National Retail Federation predicts that returns are expected to account for 17% of all goods sold in the United States, with a total return amount of $890 billion. This level is higher than the 15% return rate as a percentage of total sales in 2023.
Since the outbreak of the epidemic, the return rate in the retail industry has skyrocketed, as consumers are accustomed to buying multiple sizes or colors of items because returns are both convenient and cheap. It is estimated that now nearly two-thirds of consumers will purchase multiple sizes or colors of items and then return some of them, a practice known as "bracketed returns." A higher percentage of consumers will also purchase certain items and then return them to get store credit or a refund.
This phenomenon has become so prominent that experts are now calling January "Returnuary" because of the large volume of returns processed in that month. Happy Returns CEO David Sobie warned in a media interview, "As behaviors like bracketed returns and rising return rates put pressure on traditional systems, retailers need to rethink reverse logistics."
Retailers are adapting to the challenges brought by bracketed returns by implementing various strategies, such as tightening return policies, offering refunds without the need for returns, and exploring buy-back programs to keep products flowing.
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