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The holiday season will mark a huge boost in revenue for most retailers: holiday sales can account for as much as 30 percent of total annual revenue. But on the heels of the biggest shopping season of the year, comes a rush of returned merchandise that will end up significantly cutting into the bottom line.
This season in particular will bring higher return rates as more European consumers than ever are expected to participate in cross-border ecommerce (ecommerce return rates are double that of brick and mortar stores and vary depending on the country’s return culture). Relaxed return policies, buyer’s remorse, and gift-recipient dislike will also contribute to the problem.
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