The holiday season is upon us, and retailers must be prepared to avoid seasonal challenges. One major obstacle facing retailers: the rising number of e-commerce returns.
Return rates have amplified as the percentage of internet sales continues to develop. The shift to e-commerce sales, especially during the holidays, prompts impulse buying and a greater chance of the customer’s later regret, which results in higher return rates. The predicted rate of returns of total retail sales for the 2015 holiday season is 8.1%. Establishing an effective reverse logistics process allows retailers to minimize processing costs and increase the recovery value of returned goods.
Supply chain managers will face more complexity during the holiday season, Pitney Bowes 2015 Holiday Shipping Survey shows. The majority of shoppers prefer to return purchases in a nearby store, while 38% of shoppers choose to return a package through a shipping provider. Only 20% of shoppers like to have a carrier pick up a package from their home.
In order to keep up with competition, companies must offer a few return options and analyze sales in order to successfully condense returns.