Retailers prepare for online shopping returns
A huge surge in online shopping during the pandemic has been a savior for retailers, but it comes at a price.
Shoppers are expected to return twice as many items as they did during last year’s holiday period, costing companies roughly $1.1 billion, according to Narvar Inc., a software and technology company thatmanages online returns for hundreds of brands.
Retailers don’t want the returns, but they do want shoppers whomay not feel safe going to stores to be comfortable buying things they haven’t seen or tried on in person.
People have been doing so much online buying since March that carriers like UPS and FedEx were already at full capacity before the holiday shopping season. And online sales just keep soaring. From Nov. 1 though Tuesday, they spiked 32% to $171.6 billion, compared with the year-ago period, according to Adobe Analytics. The massive challenges of shipping COVIDvaccines in the weeks and months ahead could put further pressure on the system.
That means shoppers who return items may not get refunds until two weeks after they’re sent back to the store, said Sara Skirboll, shopping expert at deals site RetailMeNot.
Many companies are offering more locations where customers can drop off returns, which cuts down shipping costs and gets refunds to shoppers more quickly.
Last year, Kohl’s began allowing Amazon returns at all of its 1,000 stores— customers drop off items for free, with no box or label needed. This year, Amazon customers can also return items at 500Whole Foods Market stores. That’s in addition to Amazon’s deal with UPS to allow similar drop-offs at UPS stores.
Happy Returns, a Santa Monica, California-based startup that works with about 150 online retailers like Rothy’s and Revolve, has increased its number of drop-off locations to 2,600, frommore than 700 last year. That includes 2,000 FedEx locations.
“It’s a great time to be in the returns business. Every day, there’s a record,” said David Sobie, CEO and co-founder of Happy Returns, noting he’s processed 50% more returns in December than November.
Walmart, the nation’s largest retailer, announced earlier this week it will pick up items shipped and sold by Walmart.com from customers’ homes for free through a new partnership with FedEx. The service will continue beyond the holiday shopping season.
A growing number of retailers are asking shoppers to not even bother sending back certain rejected items.
When Dick Pirozzolo wanted to return a toosmall jersey he bought for $40 on a website called Online Cycling Gear, he was pleasantly surprised with the response. The site told him to keep it, discard it, or give it to a friend or charity — and it will send him the right size for an extra $10.
“I was fine with that,” said the 77-year- old cycling enthusiast from Wellesley, Massachusetts. “I did a good thing for a friend, and I got a new shirt.” The experience, he says, has given himconfidence to buy more online this holiday season.