During this holiday shopping season, many online shoppers might experience a shift in return policies. Instead of the usual free returns, retailers are increasingly telling customers to keep unwanted items. This change is driven by the high costs associated with shipping, sorting, and reselling (or disposing of) returned items, not to mention the environmental impact. goTRG's 2023 Holiday Survey shows that 59% of retailers now offer "keep it" policies, a notable increase from 26% last year. goTRG's researcg included 500 executives from major retailers like Amazon and Walmart. However, goTRG CEO Sender Shamiss notes that retailers are cautious about publicizing these policies due to potential abuse.
Nearly 90% of retailers have revised various policies this year, with some introducing charges for certain returns and encouraging in-store returns for online purchases. Amazon, for instance, faced customer backlash when it announced a $1 charge for returns to UPS stores if a closer Amazon-affiliated store was available.
The surge in returns, which reached 16.5% of sales last year, costing the U.S. retail industry $816.8 billion, has compelled retailers like Amazon to find solutions. One approach by Amazon is labeling frequently returned items to encourage more cautious purchasing. Overall, these changes reflect a broader effort by retailers to manage the high costs and logistical challenges of online returns, with companies like goTRG playing a pivotal role in shaping these new strategies.
