January 7th 2019
Buy Online Return In-Store (BORIS) Transactions Are a Key Contributor to the Increase in Returns
Appriss Retail, the industry leader in retail performance improvement solutions, has released an analysis of the cost and ramifications of U. S. consumer merchandise returns on retailers, jobs, and state economies. The “2018 Consumer Returns in the Retail Industry” report, which analyzes results from the National Retail Federation’s 2018 Organized Retail Crime survey, states that overall value of returned merchandise in the United States during the past year was almost $369 billion. This cost does not include the overhead a retailer incurs when receiving, sorting, and repackaging useable goods for resale. In addition, $18 billion to $24 billion of that sum were fraudulent returns.
Return rates vary greatly by retail vertical; for example, drug stores/pharmacies showed a 2.14 percent blended return rate while auto parts retailers had a rate of 22.58 percent. Most verticals are within two or three percentage points of the National Retail Federation’s published median of a 10 percent return rate. The report contains the blended return rate for 10 retail verticals.
“Today’s consumers expect to be able to change their minds after a purchase,” said Krishnan Sastry, president of Appriss Retail. “How a retailer responds to that shopper in the store has a lasting impact on its relationship with the consumer. Since a return is a lost sale it may not always be viewed as the customer service moment that it can be, especially for items purchased online and returned in the store. We hope that the report opens the door to further discussions about how retailers can improve their customer experience while reducing the associated losses.”
Other highlights from the report include:
The full report is available for download at https://apprissretail.com/resource/2018-consumer-returns-in-the-retail-industry-report/
ABOUT APPRISS RETAIL
Appriss Retail, a division of Appriss Inc., provides artificial intelligence-based solutions to help retailers protect margin, unlock sales, and cut shrink. With more than 20 years of retail data science expertise, the company’s Software-as-a-Service (SaaS) platform generates advanced analytical insights and real-time decisions that drive action throughout the organization, including operations, finance, marketing, and loss prevention. Its performance-improvement solutions yield measurable results with significant return on investment among retail store, ecommerce, and inventory functions. Appriss Retail serves a global base of leading specialty, apparel, department store, hard goods, big box, grocery, pharmacy, and hospitality businesses in more than 100,000 locations (brick and mortar and online) in 45 countries across six continents. For more information about Appriss Retail, visit https://apprissretail.com.