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Returns Eating into Retailer Margins after Holiday Season

According to The Wall Street Journal, extended return windows for holiday shoppers combined with rate increases from parcel carriers could cut into profit margins significantly. They estimate that between $112 billion and $114 billion in goods could be returned to U.S. retailers, up from $100 billion in 2020 and $95 billion in 2019.

Between carrier capacity constraints, rising shipping costs, and staff pay to process the returns and evaluate whether the products can be shelved and re-sold, the costs add up quickly. In fact, for some retailers, it’s less expensive to refund the money and let the customer keep the item than to take it as a return.

Logistyx has detailed the importance of having a comprehensive returns strategy in place numerous times, setting up a parcel returns resource center dedicated to the topic. Among the resources available:

While the returns trend isn’t new, it’s still an overlooked part of the sales process that retailers must consider and optimize to ensure both customer satisfaction and a healthy bottom line.

Contact us today to learn how advanced multi-carrier parcel shipping technology can help your organization optimize it’s returns process and determine which approach is best based on your business goals.

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