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As Online Holiday Sales Soar, So Does the Burden of Returns

As economists are expecting online holiday sales to show an 18 to 19 percent year-over-year growth rate, retailers and brands are faced with a record number of product returns. Companies are also dealing with steeper shipping costs, which is now becoming a top expense. One carrier alone is expecting nearly 2 million returns on Jan. 2, which is now known as “National Returns Day.” [See related story: Holiday Shipping, What to Expect This Shopping Season] UPS, which offers a variety of solutions to help businesses better manage returns, is predicting a “seventh consecutive record-breaking National Returns Day as consumers send back holiday orders ranging from ill-fitting sweaters to duplicate kitchen gadgets,” the company said in a statement adding that on Jan. 2 shoppers are expected “to deposit 1.9 million returns packages into the UPS network — a 26 percent spike from last year’s peak returns day.” UPS said its solutions make it easier for consumers to return holiday gifts. In its own survey of shoppers, the carrier said consumers “make purchases with returns in mind.” UPS noted that 73 percent of online shoppers “say the returns experience affects their likelihood to buy from a retailer again.” UPS and other carriers tout services that make the

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