The retail return process has become increasingly complicated, evolving from a straightforward practice to a significant challenge marked by fraud and logistics expenses. The push for free returns, initiated by larger companies like Amazon, has burdened smaller retailers who cannot manage such costs. Online shopping has surged, with 80.4% of Americans engaging, leading to more overbuying and returns due to misalignment of expectations. On average, the cost of handling returns is substantial, ranging between $25 and $35, factoring in shipping, restocking, and potential item damage.
The average cost to a business to return an item is between $25 and $35, encompassing shipping, handling, restocking, and potential damage to returned goods.
With 80.4% of Americans shopping online, customers often buy multiple sizes, leading to an increase in returns and higher costs for retailers.
The industry now struggles with expectations for free returns, significantly affecting smaller businesses that cannot absorb the costs associated with reverse logistics.
Returning large items like furniture incurs prohibitive costs due to shipping and regulations, particularly with products like mattresses that are difficult to resell.
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