UPS predicted a huge amount of returns on January 2.
People may return 1.9 million packages into the UPS network on January 2, and it will be the peak day for returns of the year.
Watch to learn more about the National Returns Day below!
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The figure shows a 26% growth in returns from last year’s National Returns Day.
The growth of returns through UPS shows the increase of e-commerce in recent years, as customers now order and return gifts via UPS, instead of at the mall or department stores.
“For retailers, a seamless returns process is essential to keeping and growing business,” Kevin Warren, UPS chief marketing officer, said in a statement. “We proudly offer businesses of all sizes – from global players to small and medium-sized merchants – the sophisticated returns services that today’s consumers demand.”
The rise of returns is not good news for retailers, especially those that cover the costs of shipping and returns for shoppers.
“Items returned through the mail cost retailers about twice as much as those returned to stores, according to an AlixPartners report,” Business Insider’s Hayley Peterson reported earlier this year. “The returns process costs retailers $3 per package when items are returned to stores, or up to $6 per return when they are shipped to a distribution center, the report found.”
“E-commerce sales hit a record high this year with more people doing their holiday shopping online,” said Steve Sadove, senior adviser for Mastercard and former CEO and Chairman of Saks Inc., in a statement.
Online sales reached up to 18.8% this holiday shopping season, despite retailers have six fewer days to sell their items between Thanksgiving and Christmas. According to a Mastercard by a report released Thursday. Overall retail sales were up 3.4% year-over-year at the same time, the report said.
Retailers were expecting about 11% of sales to be returned during the holiday season last year, according to a National Retail Federation survey. Returns cost retailers an estimated $369 billion in lost sales in 2018, or about 10% in lost sales, according to a separate study by Appriss Retail.
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