LOS ANGELES (Reuters) – United Parcel Service Inc on Thursday expects to ship 1.9 million gifts and other items back to U.S. retailers as e-commerce fuels an anticipated 26% year-over-year volume surge on “National Returns Day.”
Jan. 2 is the busiest day for holiday returns in the United States. U.S. shoppers return more packages than their peers around the globe, spurred by free shipping on orders and returns – costly perks that squeeze retailer profits.
% - Goods - United - States - Retailers
About 10% of goods sold in the United States go back to retailers every year, resulting in roughly $369 billion in lost sales, according to a 2018 report from Appriss Retail and National Retail Federation.
Apparel is an outsized contributor. Returns in some categories approach 50% due to inconsistent sizing across brands, said Greg Buzek, founder and president of IHL Group, a research and advisory firm.
Expense - Retailers - Buzek - Losses - Returns
“That causes great expense for retailers,” said Buzek, who estimated that annual global losses from retail returns are nearly $1 trillion – up from $600 billion in 2015.
A new crop of startups aims to take the bite out of returns.
Los - Happy - Returns - Expenses - %
Los Angeles-based Happy Returns promises to slash returns-related expenses up to 30% by reducing shipping costs and customer support...
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