Christmas returns soar! Americans will return $66.7 billion in Christmas packages in November and December!

It is learned that November and December are the peak sales season of the year in the United States. The National Retail Federation predicts that online sales in these two months will reach a total of US$223.3 billion, a year-on-year increase of 13% and 45.6% respectively compared with November and December 2019.

However, the 2021 sales season faces a serious supply chain crisis, one of the consequences of which is a surge in return rates. According to analysis data from logistics companies Optoro and Cbre Supply Chain Advisory, two-thirds of American consumers will return some Christmas packages during November and December, totaling at least $66.7 billion, accounting for about 30% of total retail sales in November and December. Estimated data also shows that from Thanksgiving to the end of January 2022, it is expected that $120 billion worth of online goods will be returned in the United States.

According to Optoro data: The cost of returning products is an average of 66% of the sales price, an increase of 59% over last year, so whether it is a returned product or a product returned due to delivery delays, it greatly reduces the seller's profit margin. Fashion products have the highest return cost of all categories, so most fashion sellers will offer discounts or choose to reduce prices to get rid of redundant inventory. In addition, technology products are the category with the highest logistics costs when returning.

It is understood that in addition to the high return rate online, the return rate in physical stores will also reach 39% during November and December.

Editor ✎ Estella/

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