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Internet retailers move to stem product returns

  • There's a little known secret amid the strong growth in online sales: up to a third of all purchase are returned, as estimated by retail consultancy Kurt Salmon. With customers not having to pay to send products back, UPS forecasts that returns will climb 15% this holiday season compared with last year.
  • The trend, which can be very costly for firms, has prompted them to act. Clothing sizes are the biggest reason why shoppers return purchased goods, so companies have been using past transactions to give consumers gentle reminders about which size fits them the best. Macy's (M) and Nordstrom (JWN) are among the those who use data to ensure that shoppers choose what will hopefully be the right fit.
  • Meanwhile, Amazon (AMZN) and other retailers offer customers "appeasements" such as gift cards or small discounts to persuade them to not return their acquisitions.
Comments (1)
  • investingInvestor
    , contributor
    Comments (1096) | Send Message
     
    SA, this market current is nuts. Kurt Salmon cannot back up his claims because they are very wrong across all eRetail.

     

    I expect that eBay has among the highest return rates because amateurs are both counterparties. SA should research eBay as the worst case example. (Hint: it is not even close.)

     

    For a sanity check to preserve SA readers' capital, study Amazon's 3rd party customer review system. Most 3rd parties on Amazon have vetted customer satisfaction in the high 90's.

     

    Other retail Web sites for Walmart, Target, Nike, and Sears have customer reviews along with customer assessments of size (e.g., runs large or small).

     

    Jeez!!! SA is spreading rumors.
    23 Dec 2013, 11:41 AM Reply Like
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