In the wake of the holiday season, the e-commerce industry is bracing for a post-Christmas returns tsunami that is expected to hit with full force. A recent report from Returnado has projected a staggering £6.9 billion worth of online purchases to be returned after the festive period. This figure represents a 31% increase from last year’s returns total and is significantly higher than the £4.8 billion returns total recorded in 2018.
The peak day for returns is anticipated to be January 10th, adding another layer of complexity to an already strained online supply chain. As physical stores remain closed or restricted in operation, retailers have had to make adjustments to their returns policies. For example, some stores have discontinued in-store click and collect services for non-essential items in Tier 4 areas, prompting alternative methods for customers to return or exchange goods.
Major retailers such as Marks & Spencer, John Lewis, Argos, and Amazon have opted to extend their returns window for items purchased during the holiday season. Given the uncertain timeline for store reopenings, it is likely that retailers will continue to prolong return deadlines. This presents a challenge for businesses as they navigate balancing inventory levels, forecasting sales, and avoiding excessive discounting on seasonal products later in the year.
The surge in e-commerce activity during lockdown periods has played a significant role in fueling the expected rise in returns. With many first-time online shoppers entering the market this year, it is expected that errors in ordering or shifts in consumer preferences will contribute to the wave of returns. Additionally, the inability for families to gather and exchange gifts as planned due to gathering restrictions may lead to an increase in returned items.
Overall, the e-commerce industry is bracing for the impact of a post-Christmas returns tsunami, which will require retailers to demonstrate flexibility and adaptability in their returns policies. As businesses work to navigate these challenges, effectively managing the surge in returns will be critical to sustaining operations and customer satisfaction moving forward.
For more information on managing post-holiday returns, check out these helpful links: Peak Returns Week and Increased Holiday Gift Returns.
