The National Retail Federation predicts record-shattering holiday spending this year to reach between $843.4 billion and $859 billion.
Therefore it’s no surprise that a record amount of returns is also being forecasted.
Marcus Shen, COO of B-Stock, an online liquidation and overstock company, says that a massive $112 billion to $114 worth of merchandise will be returned post-holiday.
In addition, online shopping this holiday season is predicted to reach $226.2 billion. And since online purchases are returned at double the rate of in-store buys, retailers are also bracing themselves for a record number of dot-com returns.
In a new report Shen and B-Stock found and are predicting the following:
- 13.3% of all holiday purchases will be returned
- $112- $114 billion worth of merchandise will get returned after the holidays
- $43 – $45 billion of that will come from eCommerce returns alone
- Online purchases are returned at double the rate of in-store buys (20 percent compared to 10 percent)
- Less than 10 percent of returns actually make it back to primary shelves
- In Q1 of 2021, the top categories of returned merchandise included apparel, home and garden goods, consumer electronics, and toys
- In Q1 of 2021, dot-com inventory increased 20 percent
Clearly ’tis the season to request gift receipts…