As the seasons turn and the festive cheer permeates the air, an unavoidable phenomenon rears its head, casting a shadow over the holiday spirit – the surge in holiday returns. This year, in particular, is shaping up to be a record-breaker in terms of return volumes, attributed largely to the booming trend of mobile shopping. With mcommerce returns running at double the rate of their brick-and-mortar counterparts, retailers are bracing for an influx of returns. Coupled with consumer-friendly return policies meant to bolster loyalty, the inevitable mismatches between gift giver and receiver, and the ever-present buyer’s remorse, the reasons behind the returns are as varied as the items themselves.
From electronic gadgets that didn’t meet expectations, to fashion misfires like the proverbial ugly holiday sweater, or a piece of jewelry that didn’t dazzle as hoped, an estimated 18% of holiday purchases—that’s nearly $170 billion worth of merchandise—will find their way back to the retailers. Despite being in perfect working order or without a scratch on them, the logistics of restocking these items become a herculean task. Processing an online return to make it shelf-ready can cost retailers twice as much as selling the item in the first place. Furthermore, the thought of stowing away seasonal items, only to clog up precious warehouse space for a year, is a scenario few look forward to.
Digging deeper into the quandary, here are some eye-opening facts regarding holiday returns:
- Approximately 18% of holiday purchases end up being returned.
- Over $170 billion worth of goods are expected to be returned this holiday season.
- Online holiday returns alone are anticipated to exceed $80 billion.
- The value of online returns has been witnessing a yearly increase of 15%.
- A quarter of all returns for the year happen around the Christmas period.
- Less than 10% of returned items are put back on sale through primary channels.
It’s evident that the issue of holiday returns is a considerable challenge for retailers. With the majority of returned holiday merchandise not making it back to the front shelves and instead contributing to the clutter in already packed warehouses, developing a strategic plan for handling B2B resale of returned and overstock items is paramount. This approach not only helps in clearing out inventory but also in recouping a significant portion of the original value.
This is where leveraging an online B2B resale platform, powered by sophisticated technology and rich data analytics, comes into play. Such platforms can greatly alleviate the pain of post-holiday returns by facilitating:
- The rapid and large-scale movement of return inventory.
- Securing higher prices for returned goods, thanks to a broader and more varied buyer base.
- The use of historical data to finely tune inventory listings for optimal performance.
- Greater control over brand imaging and narrative.
- Efficient tracking of performance and efficiency metrics.
B-Stock, as the leading B2B resale platform for returned and surplus goods, has developed an extensive framework of secondary market sales channels. Supported by a comprehensive dataset on buying and selling trends, B-Stock provides invaluable insights into managing holiday returns efficiently, all year round. Our platform’s data reveals:
- Trendy women’s apparel, toys, specialty kitchen gadgets, and tools lead the charge in post-holiday returns.
- A 30% increase in inventory from retail clients in Q1 (January-March).
- 80% of this merchandise is due to customer returns, with the remaining 20% being excess stock or shelf pulls.
- A doubling in the volume of truckloads of returned merchandise between January and March.
- A 40% spike in dot com inventory levels following Christmas.
- Business buyers including discount retailers, online sellers, and small family shops being the primary purchasers of this merchandise.
The reality of modern retail means that escape from holiday returns is a pipe dream at best. However, by embracing these returns with innovative remarketing strategies, what was once a burdensome inevitability can be transformed into a valuable asset. Strategizing returns not as a loss but as an opportunity for recovery and additional revenue is the key to turning post-holiday woes into wins.
For an in-depth look at mastering the art of managing holiday returns, delve into our comprehensive DeFi Daily News Playbook: How an online B2B resale platform solves the post-holiday returns headache.
Conclusion: The Silver Lining in Holiday Returns
As we wrap up this exploration into the world of holiday returns, it’s clear that what initially appears as a storm cloud of logistical nightmares and financial strain holds within it the silver lining of opportunity. With the right strategies and technological tools, the daunting challenge of returns transforms into a springboard for innovation, sustainability, and ultimately, profitability. Whether it’s turning returned merchandise into a pivotal asset or carving out newfound revenue streams in the B2B secondary market, the post-holiday returns season is ripe with potential for those willing to rethink and re-strategize. So, as the holiday songs fade and the decorations come down, remember that with every return comes a chance to renew, refresh, and revitalize your retail approach, ensuring that the only thing returning customers bring back is their loyalty and trust.
Cheers to turning holiday return lemons into lucrative lemonade!
