Traditional and online retailers in the U.S. can sell $9 billion worth of Halloween items, but it can also mean a bigger need to process returned merchandise, especially from e-commerce transactions.
A National Retail Federation (NRF) survey showed that costumes would account for almost 70% of retail sales, which would cost $3.2 billion. While this is the most significant share of all sales, nearly all consumers will buy $2.6 billion worth of candy for the upcoming festivities.
How to Manage Returns
A return merchandise authorization or RMA application from ReverseLogix is ideal for handling returned products. Take note that NRF’s projection of $9 billion worth of sales will only be meaningful if companies can minimize the costs of reverse logistics. These expenses often involve shipping fees and refunds to customers.
In 2017 alone, Americans sent back $351 billion worth of items from physical and online stores. The NRF said that this represented 10% of overall sales for the entire year. These numbers prove that a significant amount of money gets lost from processing customer returns, but there are ways to prevent this.
Fraud and Abuse Prevention
Retailers should have clear policies for accepting returned items, and this can be tricky since it can drive customers away. This is where the expertise of a logistics company comes into play; it can help you strike a balance between protecting your bottom line and maintaining customer satisfaction.
A proactive approach also helps in limiting the number of returns. For instance, companies like Amazon have tried to reduce clothing returns by sending items with different sizes and colors. Customers will then return the other product after choosing their preferred items.
An airtight store policy can only do so much when tackling the perennial problem of returned merchandise. As the holiday season approaches, retailers should consider different options for cutting their losses brought by excessive consumer returns.