[[{"@context":"http:\/\/schema.org","@type":"Article","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article","articleBody":"With the holidays behind us, consumers are busy returning all those unwanted gifts. But holiday and online returns, like most things these days, aren\u2019t what they used to be.\nSoaring e-commerce sales combined with continued supply chain issues are complicating online returns for retailers and consumers alike.\nWhile online retailers enjoyed robust sales over the holidays, they\u2019re now faced with increased returns amid rising logistics costs. Consumers, meanwhile, are finding that it\u2019s not always easy to return something they bought online during the holidays, with varied return policies and overwhelmed shipping systems.\n \nOrder fulfillment 2022: Delivering much more than product\n If a product arrives late or broken, the consumer blames your brand. Discover order fulfillment strategies to help keep ALL of your brand promises, including delivery. \nOnline holiday returns on the rise\nOnline holiday retail sales in 2021 jumped 11% compared to 2020, according to the Mastercard SpendingPulse report released in late December. E-commerce made up almost 21% of total retail sales, up from 10% in 2020 and 14% in 2019, Mastercard said.\nCBRE estimates that $66.7 billion worth of online holiday purchases will be returned and pushed back into the strained supply chain. That\u2019s up 13% from last year, and nearly 46% above the previous five-year average.\nThe return rate for e-commerce sales can be as high as 30% compared to 10% for brick-and-mortar sales, according to reverse logistics company Optoro. A report from the National Retail Federation a year ago showed that online returns more than doubled in 2020 from 2019.\nFactoring in transportation, processing and other losses, holiday returns will cost retailers two-thirds the price of the original item, Optoro estimates. The returns process is a complicated affair involving assessments, transportation, distribution centers, and factories.\nThe surge in returns mean mounting challenges for retailers, which have been grappling with labor shortages and higher logistics costs due to pandemic-induced supply chain issues.\nA survey by the Reverse Logistics Association showed that more than half of those polled expected the cost of returns to rise in the fourth quarter of 2021, citing rising transportation and warehousing costs and capacity constraints.\n \nThe high cost of e-commerce returns: A trillion dollar problem\n Marketing metrics often overlook the high rate of e-commerce product returns, which is extremely costly to retailers. As global e-commerce continues to grow, the amount of returns is expected to cost retailers more than a trillion dollars a year. \nE-commerce fail: Why online shoppers return items\nAll the online returns aren\u2019t all that surprising, given how many things can go wrong when you buy online. When you can\u2019t see or touch an item, it\u2019s easy to order something that doesn\u2019t live up to your expectations. A recent Voxware survey provides insight into why online orders are returned:\nWrong item: 41% of survey respondents said they returned a product because the retailer sent the wrong size, color or wrong item altogether.\nLate delivery: 26% of consumers polled said they returned items because they arrived later than promised.\nWrong again: More than half of respondents said they returned an incorrect order, but received the wrong item the second time around.\nReturn by mail: 56% said they prefer to return products using a pre-paid postage label.\nHow a retailer handles returns heavily impacts whether a buyer will return, Voxware also found. Nearly all of the consumers polled said they agree that the way a retailer manages returns influences whether they\u2019ll made another purchase from that retailer.\nClearly aware of the connection between a positive return experience and customer loyalty, many retailers are extending their return policies. Still, it\u2019s not hard to find consumers taking to social media to complain about a poor returns process.\n@HomeDepot sent me a 80lb pressure washer smashed into small pieces. Their return policy is to pick it up and cart it back to them or swallow the cost. Is e-commerce really still this hard in 2022?\n\u2014 Ironman Lives (@bhstark) January 5, 2022\nThanks, but as I suspected, E-Commerce dept was absolutely no help. Almost all retailers extend their return policies around Christmas. It just makes sense. Please think about it @SamsungUS #disappointed\n\u2014 Bryan Cobb (@Bryans140) January 5, 2022\nOther consumers have run into problems with overwhelmed shippers when they tried returning items they bought online over the holidays, a Houston TV station reported. Some retailers have been using third-party shippers instead of FedEx and UPS, especially for large items, according to the report.\n \nHow to create a winning returns policy and keep customers happy\n A solid, well-planned returns policy is essential for e-commerce success. Find out what to do -- and what not to do -- by comparing how top online sellers handle returns. \nSolving the returns problem\nWhile better logistics and returns management are essential for streamlining returns, online retailers can take steps to reduce returns:\nMaking sure online product descriptions are up-to-date and accurate\nInclude high-quality product visuals and 3D modeling\nUse augmented reality to allow virtual try-ons or tests before purchase\n\u201cThe solution starts with consumer-use data, product\/packaging design and operational data to better understand why an item was returned and how that should effectively influence the retailer\u2019s product offerings,\u201d CBRE said in its report.\nGaining visibility into inventory, fulfillment, service, supply chain and logistics through customer data also can help online retailers better manage returns.\nSolving the returns problem is becoming more and more urgent, not only to stem business losses and prevent customer frustration. The environmental costs of returns is huge. According to Optoro, returns produced 5.8 billion pounds of waste and 16 million metric tons of CO2 emissions.\nReturns don\u2019t have to be painful. Smooth the process for your customers & boost your bottom line. \u21a9\ufe0f Find out HERE!","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article_Person","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article_Person_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2018\/08\/Marcia_Yusavage-150x150.jpg"},"name":"Marcia Savage","sameAs":["https:\/\/twitter.com\/marciasavage?lang=en","https:\/\/www.linkedin.com\/in\/marcia-savage-9489411\/"],"url":"https:\/\/www.the-future-of-commerce.com\/contributor\/marcia-yusavage\/"},"dateModified":"2022-01-12T13:41:33+00:00","datePublished":"2022-01-11T06:01:16+00:00","description":"Online sales soared during the holidays and so have online returns, driving up costs for retailers and frustration for consumers.","headline":"Online returns: Holiday returns take huge bite out of e-commerce profits","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article_ImageObject","height":"630","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/01\/online-returns-1-1200x630.png","width":"1200"},"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/","name":"Online returns: Holiday returns take huge bite out of e-commerce profits","publisher":{"@type":"Organization","@id":"https:\/\/www.the-future-of-commerce.com\/","additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and B2B.","logo":{"@type":"ImageObject","@id":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","height":"96","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","width":"500"},"name":"The Future of Customer Engagement and Experience","sameAs":["https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/www.the-future-of-commerce.com\/feed\/"],"url":"https:\/\/www.the-future-of-commerce.com\/"},"url":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article"},{"@type":["Article"],"@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article","@context":{"@vocab":"http:\/\/schema.org\/","kg":"http:\/\/g.co\/kg"},"url":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/","publisher":[{"@id":"https:\/\/www.the-future-of-commerce.com\/"}],"author":[{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article_author_Person","image":[{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article_author_Person_image_ImageObject","url":"https:\/\/cdn-bijap.nitrocdn.com\/AuMaQmessFRMSicXmZsEecJFLEquAyoT\/assets\/static\/optimized\/rev-b3d386d\/wp-content\/uploads\/2018\/08\/Marcia_Yusavage-150x150.jpg"}],"sameAs":["https:\/\/www.linkedin.com\/in\/marcia-savage-9489411\/","https:\/\/twitter.com\/marciasavage?lang=en\nhttps:\/\/www.linkedin.com\/in\/marcia-savage-9489411\/"],"url":"https:\/\/www.the-future-of-commerce.com\/contributor\/marcia-yusavage\/\nhttps:\/\/www.the-future-of-commerce.com\/contributor\/marcia-yusavage\/","name":"https:\/\/www.the-future-of-commerce.com\/contributor\/marcia-yusavage\/\nhttps:\/\/www.the-future-of-commerce.com\/contributor\/marcia-yusavage\/"}],"subjectOf":[{"@type":"FAQPage","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#Article_subjectOf_FAQPage","mainEntity":[{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#subjectOf_FAQPage_mainEntity0","name":"Online holiday returns on the rise","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#subjectOf_FAQPage_mainEntity0_acceptedAnswer_Answer","text":"Online holiday retail sales in 2021 jumped 11% compared to 2020, according to the Mastercard SpendingPulse<\/a> report released in late December. E-commerce made up almost 21% of total retail sales, up from 10% in 2020 and 14% in 2019, Mastercard said.CBRE estimates that $66.7 billion worth of online holiday purchases will be returned<\/a> and pushed back into the strained supply chain. That\u2019s up 13% from last year, and nearly 46% above the previous five-year average.<\/span><\/span>The return rate for e-commerce sales can be as high as 30% compared to 10% for brick-and-mortar sales, according to reverse logistics company Optoro. A report from the National Retail Federation a year ago showed that online returns more than doubled in 2020<\/a> from 2019.The surge in returns mean mounting challenges for retailers, which have been grappling with labor shortages and higher logistics costs due to pandemic-induced supply chain issues.A survey by the Reverse Logistics Association showed that more than half of those polled expected the cost of returns to rise in the fourth quarter of 2021, citing rising transportation and warehousing costs and capacity constraints."}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#subjectOf_FAQPage_mainEntity1","name":"E-commerce fail: Why online shoppers return items","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/01\/11\/holiday-online-returns-2022\/#subjectOf_FAQPage_mainEntity1_acceptedAnswer_Answer","text":"All the online returns aren\u2019t all that surprising, given how many things can go wrong when you buy online. When you can\u2019t see or touch an item, it\u2019s easy to order something that doesn\u2019t live up to your expectations.
  • Wrong item<\/strong>: 41% of survey respondents said they returned a product because the retailer sent the wrong size, color or wrong item altogether.<\/li>
  • Late delivery<\/strong>: 26% of consumers polled said they returned items because they arrived later than promised.<\/li>
  • Wrong again<\/strong>: More than half of respondents said they returned an incorrect order, but received the wrong item the second time around.<\/li>
  • Return by mail<\/strong>: 56% said they prefer to return products using a pre-paid postage label.<\/li> How a retailer handles returns heavily impacts whether a buyer will return, Voxware also found. Nearly all of the consumers polled said they agree that the way a retailer manages returns influences whether they\u2019ll made another purchase from that retailer.<\/span><\/span>Clearly aware of the connection between a positive return experience and customer loyalty, many retailers are extending their return policies<\/a>. Still, it\u2019s not hard to find consumers taking to social media to complain about a poor returns process.