Summary Retailers Are Bracing for Their Postholiday Returns Hangover - WSJ www.wsj.com
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Retailers are experiencing a significant increase in post-holiday returns, amounting to $817 billion, and are turning to Inmar Intelligence for efficient returns handling while also implementing measures to decrease returns and minimize costs.
Slides
Slide Presentation (7 slides)
Key Points
- Shoppers returned 16.5% of items they purchased during the holiday season, valued at nearly $817 billion.
- Returns pose a significant challenge for retailers as they eat into profit margins and require handling of unpredictable flow of goods.
- The volume of returns has become a trillion-dollar problem for retailers.
- Retail-services companies like Inmar Intelligence help manage returns by inspecting items and determining their fate.
- Handling returns can cost merchants about $27 for a $100 online order.
- Some retailers are implementing measures to minimize returns, such as charging for return shipping or providing online tools to help customers choose the right size.
- Returns remain a significant challenge for the retail industry, requiring innovative solutions to minimize costs and maximize efficiency.
Summaries
33 word summary
Retailers face a surge in post-holiday returns, totaling $817 billion, impacting profits and inventory management. Inmar Intelligence helps handle returns efficiently. Retailers implement measures to reduce returns and minimize costs in the industry.
97 word summary
Retailers are dealing with a surge in post-holiday returns, with shoppers returning 16.5% of their purchases in 2021, totaling $817 billion. This creates problems for retailers, as returns impact profits and create uncertainty in managing inventory. Inmar Intelligence helps handle returns by inspecting items for resale, donation, liquidation, or disposal. Returns can be costly, with estimates suggesting a $27 expense for every $100 online order. Some retailers are implementing measures like charging for return shipping or providing sizing tools to reduce returns. Finding innovative solutions to minimize costs and enhance efficiency is crucial in the retail industry.
131 word summary
Retailers are grappling with a growing issue: the surge in returns following the holiday season. In 2021, shoppers returned 16.5% of their purchases, amounting to around $817 billion, double the previous year's rate. This poses a considerable problem for retailers, as returns eat into their profit margins and create uncertainty in managing the influx of goods. Companies like Inmar Intelligence help retailers handle returns by inspecting items for resale, donation, liquidation, or disposal. Handling returns can be costly, with estimates suggesting a $27 expense for every $100 online order. Some retailers are taking measures to reduce returns, such as charging customers for return shipping or providing online tools for accurate sizing. Nonetheless, returns remain a significant challenge that demands innovative solutions to minimize costs and enhance efficiency in the retail industry.
271 word summary
Retailers are facing a major problem after the holiday season: the high volume of returns. Last year, shoppers returned 16.5% of items they purchased, valued at nearly $817 billion, double the percentage of goods returned in 2019. This poses a significant challenge for retailers, as returns eat into their profit margins and require them to handle the unpredictable flow of goods coming back. The volume of returns has grown to a point where it is becoming a trillion-dollar problem. Retail-services company Inmar Intelligence is on the front lines of managing returns at its warehouse in Pennsylvania. They receive and process hundreds of thousands of returned items each week from various retailers. Workers carefully inspect each item to determine if it can be resold, donated, liquidated, or sent to a landfill. Even seemingly brand new items are closely examined for any flaws or signs of use. Inmar and other companies in the reverse logistics business help retailers manage the complex process of handling returns and navigate various returns policies. The cost of handling returns can be significant, with estimates suggesting that it costs merchants about $27 to handle a return for a $100 online order. Retailers have traditionally absorbed these costs as part of their generous returns policies, but the volume of returns has now reached a point where it is becoming unsustainable. Some retailers have started implementing measures to minimize returns, such as charging customers for return shipping or providing online tools to help customers choose the right size. However, returns remain a significant challenge for the retail industry, requiring innovative solutions to minimize costs and maximize efficiency in handling returns.