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The growth of e-commerce, now almost 10 percent of retail sales, has contributed to a soaring rate of returns. Return rates of online purchases are much higher than for in-store purchases. For apparel, it’s as high as 30 percent online vs. 8 percent for store purchases.
The cost of offering free shipping on returns and processing those goods is not cheap. That’s why brick-and-mortar retailers encourage in-store returns. Shoppers like that too because there’s no wait for your money back, although Amazon credits accounts as soon as you slap on a return label.
Today’s consumer purchases happen more rapidly than ever, making returns an unavoidable aspect of the shopping experience. Every year, billions of dollars worth of returned goods make their way back to retailers, often resulting in excess inventory. Many of these…