Online Christmas returns add to USD 9.46 billion bill for retailers

Date: 2022-01-03   Author: Pankaj Singh  Category: #news

Online Christmas returns add to USD 9.46 billion bill for retailers

A flurry of online Christmas returns has reportedly cost around USD 9.46 billion (£7 billion) for retailers.

With the end of the festive period, warehouse workers are striving to process millions of rejected or returned gifts at around £20 per package, according to a returns management firm, nShift.

A credible report from a returns specialist, ReBound, also revealed that 1 in 3 fashion items purchased online is sent back, which is double the rate of items bought in shops.

According to Al Gerrie, ZigZag Global’s Chief Executive Officer, the company witnesses a return rate of 30%-50% for womenswear and around 20% for menswear in the United Kingdom. Gerrie also stated that Germany has the highest return rate of around 50 percent.

KPMG, a professional services group, stated that spiraling costs came as a huge blow for retailers. In addition, the US-based Reverse Logistics Association observed that returns can cut down profits by around 30 percent.

It should be noted that many retailers do not charge consumers a return fee. However, some retailers have introduced return charges. For instance, Hollister charges £5, Uniqlo charges £2.95 and Next charges around £2 per collection.

Interestingly, COVID-19 lockdowns and the adoption of online shopping have increased customer spending above pre-pandemic levels. According to Barclaycard research, British citizens spend 5.9% more in 2021 than in 2019.

Due to the looming fear of contracting the virus, a majority of the British public switched to online shopping from in-person shopping. The public abandoned their in-person weekly grocery shopping and shifted to online providers like Ocado, which resulted in a 97.4 percent surge in online supermarket shopping in comparison with 2019.

Although this shopping pattern change emerged out of fear, the escalation in online shopping indicates a permanent change in consumer behavior.

Source credits:

About Author

Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Swiss-based Lonza acquires Synaffix to expand its ADCs portfolio

Author: Pankaj Singh

Lonza, a leading pharmaceutical company based in Switzerland, has reportedly expanded its antibody-drug conjugates (ADCs) portfolio with the acquisition of Dutch biotechnology business, Synaffix for a total consid...

Xiomi partners with Indian assembler Dixon to strengthen supply base

Author: Pankaj Singh

Xiaomi, the leading Chinese smartphone manufacturer, has reportedly collaborated with an Indian contract company, Dixon Technologies, for the manufacturing and export of its mobile phones. This move aligns with the Chi...

UAE’s ITC, Google join forces to leverage AI data & technologies

Author: Pankaj Singh

Abu Dhabi Department of Municipalities and Transport’s Integrated Transport Centre (ITC) has reportedly signed two agreements with Google in a bid to showcase the country’s efforts aimed towards advancing i...