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Industry News

The high cost of online returns

November 3, 2017

Almost a third of web retail orders end up being sent back, compared with a mere 9 percent of the purchases made at physical stores, according to a UPS study cited by Bloomberg. And processing those returns is costly — especially if they were initially shipped for free.

Some retailers are trying to save money by encouraging online shoppers to take returns to a physical store rather than shipping them back; currently, about 75 percent of online returns are shipped. Returning them in person is not only less expensive, but it frequently leads to additional purchases as well.

By Brannon Boswell

Executive Editor, Commerce + Communities Today

Commerce + Communities Today

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