For the second time in one week, goTRG and our Returns Report: 2023 Holiday Survey have been featured in Forbes, highlighting the critical issue of managing product returns in retail. "As retailers grapple with returns management, once seen as an unavoidable cost, it is now recognized as a strategic expense." - Forbes
In the U.S., retailers faced a staggering $816 billion loss in revenue due to a 16.5% return rate on merchandise purchases, as reported by the National Retail Federation. Traditionally, the retail industry emphasized hassle-free returns, often with “free” return policies. This led to expensive consumer behaviors, such as purchasing multiple sizes of an item and returning the rest. goTRG's findings show that 59% of retailers are adapting by offering "keep it" options for low-value returns. In fact, 27% of these retailers consider items priced up to $20 for their keep-it policy.
The environmental toll is significant, with many returns ending up in landfills and the transportation contributing to carbon emissions. Reacting to these challenges, some retailers are revising their return policies by introducing charges or limiting returns, a move that could drive customers elsewhere.
