The number of returns of Black Friday products will increase. How should sellers respond?

It is learned that with less than a week and a half to go until Black Friday, many American consumers are ready to shop. However, retail analysis company Appriss Retail predicts that the number of returns of American goods will continue to rise on Black Friday this year.

Appriss Retail stressed that fast fashion companies like Boohoo and Zara have noticed an increase in return rates and have taken steps to charge online return fees. To facilitate customer returns, Walmart also launched curbside returns and door-to-door pickup services before the holidays and extended its return policy until January 31, 2023.

According to the National Retail Federation, the value of returned merchandise in the United States increased by 6% in 2021 to more than $761 billion, accounting for 16.6% of total retail sales. According to Appriss Retail, the return rate for online shopping in the United States is 3 to 4 times that of physical stores. On average, the cost of returns is 21% of the value of each order.

According to Appriss Retail, more than two-thirds of retailers now view returns as a “cost of doing business.” But the reality is that nearly all (91%) retailers have higher return rates than revenue growth.

Appriss Retail points out that reducing returns is currently the top priority for 83% of retailers. Unfortunately, most (69%) retailers do not understand the reasons why consumers return products. Only 29% of retailers have developed an end-to-end strategic returns management plan, and only 27% of retailers have a department responsible for returns management.

Appriss Retail also proposed three ways to help online retailers reduce return costs:

• Offering products that are more likely to be purchased again (nearly two-thirds of consumers say they are more likely to buy again)
• Providing AR virtual try-on experience (59% of consumers are interested)
• Allow consumers to resell items directly to other shoppers (saving $20 on each return)

Editor ✎ Nicole/

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