Page 11 - aruba-today-20201228

A11
business Monday 28 deceMber 2020

Retailers brace for flood of returns from online shopping

By ANNE D’INNOCENZIO
AP Retail Writer
NEW YORK (AP) — A huge
surge in online shopping
during the pandemic has
been a savior for retailers,
but it comes at a price.
Shoppers are expected
to return twice as many
items as they did during
last year’s holiday period,
costing companies roughly
$1.1 billion, according to
Narvar Inc., a software and
technology company that
manages online returns for
hundreds of brands.
Retailers don’t want the
returns, but they do want
shoppers who may not feel
safe going to stores to be
comfortable buying things
they haven’t seen or tried
on in person.
People have been doing so
much online buying since
March that carriers like UPS
and FedEx were already
at full capacity before
the holiday shopping sea-
son. And online sales just
keep soaring. From Nov.
1 though Tuesday, they Packages await delivery inside of a UPS truck, Wednesday, Dec. 19, 2018, in Baltimore.
spiked 32% to $171.6 billion, Associated Press
compared with the year- has increased its number of will send him the right size about 30%. Newport Beach, Califor-
ago period, according to drop-off locations to 2,600, for an extra $10. But not all rejected items nia, bought her boyfriend
Adobe Analytics. The mas- from more than 700 last “I was fine with that,” said are the same and have a waterproof backpack
sive challenges of shipping year. That includes 2,000 the 77-year-old cycling varying levels of deprecia- on Black Friday, then real-
COVID-19 vaccines in the FedEx locations. enthusiast from Welles- tion, experts say. After an ized there was a 30-day re-
weeks and months ahead “It’s a great time to be in ley, Massachusetts. “I did item is sent back to the re- turn policy. She decided to
could put further pressure the returns business. Every a good thing for a friend, tailer, the company must move up the gift exchange
on the system. day, there’s a record,” said and I got a new shirt.” The assess its condition and to last weekend so he had
That means shoppers who David Sobie, CEO and co- experience, he says, has decide whether to resell it, time to return if he didn’t
return items may not get founder of Happy Returns, given him confidence to send it to a liquidator or the like it.
refunds until two weeks noting he’s processed 50% buy more online this holi- landfill. Buying too early can come
after they’re sent back to more returns in December day season. Optoro, a return logistics with other hazards.
the store, said Sara Skirboll, than November. David Bassuk, global co- company, estimates the Sarah Huffman, 40, of
shopping expert at deals Walmart, the nation’s larg- leader of AlixPartners’ re- value of fashion apparel Chesapeake, Virginia,
site RetailMeNot. est retailer, announced tail practice, says stores depreciates by 20% to 50% wanted to get a jump start
Many companies are offer- earlier this week it will pick are increasingly making it over an eight-to-16-week on the holiday season and
ing more locations where up items shipped and sold easier for shoppers to feel period. That’s why it’s so spent $600 on Amazon on
customers can drop off re- by Walmart.com from cus- less guilty about returning critical to get rejected gifts, including a $60 pair of
turns, which cuts down ship- tomers’ homes for free items. items back and on sale pajamas and a $90 Xbox
ping costs and gets refunds through a new partnership “If they’re not sure of their again quickly. game for her five children,
to shoppers more quickly. with FedEx. The service will size, they order both sizes,” Returns are also compli- in May.
Last year, Kohl’s began al- continue beyond the holi- he says. “If they’re not sure cated this year because But then her husband, a
lowing Amazon returns at day shopping season. which color, they order retailers pushed people to disabled veteran, quit his
all of its 1,000 stores — cus- A growing number of re- both colors. And if they’re buy holiday gifts early to job because he felt his boss
tomers drop off items for tailers are asking shoppers not sure which item, they avoid shipping delays and was too lax with COVD-19
free, with no box or label to not even bother send- order them all. But it’s cost- crowded stores, meaning safety protocols. Now, her
needed. This year, Amazon ing back certain rejected ly to the retailers, and the the return window may be family is struggling to put
customers can also return items. retailers are not well po- closed by the time Christ- food on the table, and she
items at 500 Whole Foods When Dick Pirozzolo want- sitioned to handle all the mas rolls around. can’t return some of the
Market stores. That’s in ad- ed to return a too-small jer- cost.” Amazon is allowing cus- gifts she bought because
dition to Amazon’s deal sey he bought for $40 on a On average, people re- tomers to return items until the return window has
with UPS to allow similar website called Online Cy- turn 25% of items they buy Jan. 31 for items shipped lapsed.
drop-offs at UPS stores. cling Gear, he was pleas- online, compared with between Oct. 1 and Dec. “I was trying to take away
Happy Returns, a Santa antly surprised with the re- only 8% of what they buy 31, giving customers more the stress of the pandemic
Monica, California-based sponse. in stores, according to For- time to decide. Last year, by buying early,” she said.
startup that works with The site told him to keep rester Research’s online an- the policy didn’t include “I didn’t realize that basic
about 150 online retailers it, discard it, or give it to a alyst Sucharita Mulpuru. For items shipped in October. life choices would find a
like Rothy’s and Revolve, friend or charity — and it clothing it’s even higher, Rachel Sakelaris, 25, of new low.”q