Omnichannel
Revamped return policy may prove costly for retailers
January 4, 2022
During the past year of the COVID-19 pandemic many retailers extended the return policy from the traditional 30 day to 60 and 90 days but the move may prove pretty costly with holiday season returns, according to a research analyst.
"The returns problem is likely to be a big focus area in the coming two years, since the costs associated with the activity are bound to impact earnings ... significantly," RSR Research analyst Brian Kilcourse told Reuters in an email.
The news comes on the heels of arduous supply chain issues retailers faced during the 2021 holiday shopping time.
Returned merchandise is projected to be a record-setting $112 billion to $114 billion, according to data from B-Stock Solutions.
In 2020 consumers brought back about $101 billion in return goods, according to data from the National Retail Federation.
