Black Friday may have been a massive success in terms of sales, but retailers are now dealing with a massive wave of returns that is overwhelming their operations. According to data from ReBound, a company that works with major retailers such as ASOS, River Island, and Crocs, returns in November were 26.6% higher compared to the previous year. What’s more, the returns on Black Friday alone surpassed last year’s figures, meaning the additional 26% increase occurred in just a few days.
While returns following sales periods are not uncommon, the initial results from the Black Friday weekend suggest that 2022 is going to be a record year for returns. By lunchtime on Cyber Monday, returns were already 8.4% higher than in 2021. In fact, returns throughout November have already exceeded last year’s numbers. By Black Friday itself, the total returns for November had already reached the same level as in 2021. This indicates that even retailers who prepared adequately based on last year’s experience may still face higher volumes of returns than anticipated.
This surge in returns poses a significant challenge for retailers. Not only does it mean the anticipated boost to their bottom line is fizzling out, but they also have to handle the logistical nightmare of processing and turning around these returned products in time for the busy Christmas season. Laura Garrett, an expert on returns at ReBound, suggests that the current cost-of-living crisis is likely contributing to this increase in returns. The rising energy bills in October and soaring mortgage rates have made buyers think twice about their purchasing decisions.
Now, retailers are faced with the daunting task of efficiently managing and processing these returns to minimize disruption and ensure customer satisfaction. They are under pressure to process returned items quickly, restock inventory, and fulfill new orders in time for the holiday season. As retailers navigate this surge in returns, they also need to assess the impact of the cost-of-living crisis on consumer behavior and adjust their strategies accordingly.
The increase in returns during the holiday season is not a new phenomenon, but the magnitude of this year’s returns presents unique challenges for retailers. It is crucial for them to closely monitor return trends, improve their return policies, and optimize their reverse logistics processes to minimize the financial and operational impact of returns. By understanding the factors contributing to the surge in returns, retailers can take proactive measures to address customer concerns and enhance the overall shopping experience.
In conclusion, the wave of returns that retailers are currently facing following this year’s Black Friday sales highlights the impact of buyer’s remorse and the cost-of-living crisis on consumer behavior. The record-breaking returns indicate a need for retailers to reassess their strategies and focus on optimizing their reverse logistics processes to effectively manage and process returns during this critical period. Striking a delicate balance between providing a seamless returns experience for customers while minimizing the financial and operational impact on retailers is key.
Useful links:
– ReBound Returns
– Reverse Logistics versus Forward Logistics
