Us Online Shopping Has Grown Significantly, And Return Rate Is Rising.
UPS expects that online shoppers will buy a lot of products during the holiday shopping season this year (2019), but they will also return more products.
The company releases estimated traffic data, which estimates that more than 1 million returned packages will be processed in December, and this record rate is expected to continue until next year's new year.
UPS said that the expected increase in the number of returned parcels was mainly due to the growing popularity of consumers in shopping sites like Amazon, which would make it easier to receive and return parcels without leaving home.
UPS marketing long Kevin Warren said that until January, the day of return was no longer enough. Today, buyers holding power of consumption can return their packages throughout the season. As retailers begin to prepare for busy shopping holidays, they should also incorporate returns into their business plans.
The marketing and advertising activities that urge shoppers to buy gifts early for holidays will also lead to a record high return rate in December, one year ahead of a year.
UPS predicts that by the week before Christmas, 1 million 600 thousand package returns will be processed every day (2018) in December 16th. It is expected that the return season will reach the peak of the holiday shopping season in January 2nd, which is known as the "national return date" in the retail industry. UPS said that it was expected that only 1 million 900 thousand returned packages could be processed on this day, an increase of 26% over the previous year.
However, these expected returns are only applicable to UPS, and do not include challenges faced by competitors such as the US postal service (USPS) or FedEx.
Generally speaking, the return rate of electronic business, especially in the holiday shopping season, is often much higher than that of electronic shopping. According to the sales data collected by Shopify, in recent years, the return rate of goods sold to stores by customers is usually between 8% and 10%. In the same period, there were about 20% return rates for e-commerce customers, and the return rate of e-commerce shoppers in holiday shopping season climbed to 30%.
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