Arab Press

بالشعب و للشعب
Monday, Apr 06, 2026

Online shopping a boon for retailers, but returns are not: report

Online shopping a boon for retailers, but returns are not: report

A huge surge in online shopping during the coronavirus pandemic has been a savior for retailers, but it comes at a price.

Shoppers are expected to return twice as many items as they did during last year's holiday period, costing companies roughly $1.1 billion, according to Narvar Inc., a software and technology company that manages online returns for hundreds of brands.

Retailers don't want the returns, but they do want shoppers who may not feel safe going to stores to be comfortable buying things they haven't seen or tried on in person.

People have been doing so much online buying since March that carriers like UPS and FedEx were already at full capacity before the holiday shopping season. And online sales just keep soaring. From Nov. 1 though Tuesday, they spiked 32% to $171.6 billion, compared with the year-ago period, according to Adobe Analytics. The massive challenges of shipping COVID-19 vaccines in the weeks and months ahead could put further pressure on the system.

That means shoppers who return items may not get refunds until two weeks after they're sent back to the store, said Sara Skirboll, shopping expert at deals site RetailMeNot.

Many companies are offering more locations where customers can drop off returns, which cuts down shipping costs and gets refunds to shoppers more quickly.

Last year, Kohl’s began allowing Amazon returns at all of its 1,000 stores — customers drop off items for free, with no box or label needed. This year, Amazon customers can also return items at 500 Whole Foods Market stores. That’s in addition to Amazon’s deal with UPS to allow similar drop-offs at UPS stores.



Happy Returns, a Santa Monica, California-based startup that works with about 150 online retailers like Rothy's and Revolve, has increased its number of drop-off locations to 2,600, from more than 700 last year. That includes 2,000 FedEx locations.

“It’s a great time to be in the returns business. Every day, there’s a record,” said David Sobie, CEO and co-founder of Happy Returns, noting he’s processed 50% more returns in December than November.

Walmart, the nation’s largest retailer, announced earlier this week it will pick up items shipped and sold by Walmart.com from customers’ homes for free through a new partnership with FedEx. The service will continue beyond the holiday shopping season.

A growing number of retailers are asking shoppers to not even bother sending back certain rejected items.

When Dick Pirozzolo wanted to return a too-small jersey he bought for $40 on a website called Online Cycling Gear, he was pleasantly surprised with the response. The site told him to keep it, discard it, or give it to a friend or charity — and it will send him the right size for an extra $10.

“I was fine with that,” said the 77-year-old cycling enthusiast from Wellesley, Massachusetts. “I did a good thing for a friend, and I got a new shirt.” The experience, he says, has given him confidence to buy more online this holiday season.

David Bassuk, global co-leader of AlixPartners' retail practice, says stores are increasingly making it easier for shoppers to feel less guilty about returning items.

“If they’re not sure of their size, they order both sizes," he says. "If they’re not sure which color, they order both colors. And if they’re not sure which item, they order them all. But it’s costly to the retailers, and the retailers are not well positioned to handle all the cost.”

On average, people return 25% of items they buy online, compared with only 8% of what they buy in stores, according to Forrester Research’s online analyst Sucharita Mulpuru. For clothing it's even higher, about 30%.

But not all rejected items are the same and have varying levels of depreciation, experts say. After an item is sent back to the retailer, the company must assess its condition and decide whether to resell it, send it to a liquidator or the landfill.

Optoro, a return logistics company, estimates the value of fashion apparel depreciates by 20% to 50% over an eight-to-16-week period. That's why it's so critical to get rejected items back and on sale again quickly.

Returns are also complicated this year because retailers pushed people to buy holiday gifts early to avoid shipping delays and crowded stores, meaning the return window may be closed by the time Christmas rolls around.

Amazon is allowing customers to return items until Jan. 31 for items shipped between Oct. 1 and Dec. 31, giving customers more time to decide. Last year, the policy didn't include items shipped in October.

Rachel Sakelaris, 25, of Newport Beach, California, bought her boyfriend a waterproof backpack on Black Friday, then realized there was a 30-day return policy. She decided to move up the gift exchange to last weekend so he had time to return if he didn't like it.

Buying too early can come with other hazards.

Sarah Huffman, 40, of Chesapeake, Virginia, wanted to get a jump start on the holiday season and spent $600 on Amazon on gifts, including a $60 pair of pajamas and a $90 Xbox game for her five children, in May.

But then her husband, a disabled veteran, quit his job because he felt his boss was too lax with COVD-19 safety protocols. Now, her family is struggling to put food on the table, and she can't return some of the gifts she bought because the return window has lapsed.

“I was trying to take away the stress of the pandemic by buying early," she said. “I didn't realize that basic life choices would find a new low.”

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Iranian Drone Strike on US Embassy in Saudi Arabia Reportedly Targeted Intelligence Facility
Saudi Deputy Foreign Minister Meets French Embassy Official to Strengthen Bilateral Engagement
Saudi Arabia Calls on United States to Seize Strategic Opportunity to Reshape Middle East
Dating Apps Surge in Saudi Arabia as Social Norms Rapidly Evolve Among Youth
Saudi Arabia Detains Over Fourteen Thousand Illegal Residents in Week-Long Enforcement Drive
Saudi Foreign Minister Engages in Diplomatic Talks with Pakistan, Kuwait and Latvia on Regional Developments
Saudi Arabia Intercepts Cruise Missile as Regional Tensions Intensify
Saudi Stock Market Edges Higher as Tadawul Index Records Modest Gain
Underlying Rivalry Between Saudi Arabia and UAE Persists Despite Temporary Calm
Saudi Arabia’s Non-Oil Sector Contracts in March as Regional Tensions Weigh on Business Activity
Saudi Arabia Unveils Ambition to Establish Prestigious Global Prize Rivaling the Nobel
Saudi Crown Prince to Engage Wall Street in Push for Investment and Economic Expansion
Iran Accuses Saudi Arabia and UAE After Downing of Chinese-Made Drone
Saudi Arabia Condemns Attack on Hospital in Sudan, Calls for Protection of Civilians
Coordinated Drone Strike Targets CIA Facility Within US Embassy in Saudi Arabia
Italy’s Meloni Prioritises Energy Security and Strait of Hormuz Stability During Gulf Tour
Uncertainty Emerges Over Timeline and Direction of Saudi Arabia’s Ambitious Ski Resort Project
UAE and Saudi Arabia Escalate Strategy with Drone Operations Targeting Iran
Trump Delivers Characteristic Remarks on Saudi Crown Prince Amid Intensifying Iran Conflict
Drone Strike on US Embassy in Riyadh Caused Greater Damage Than First Reported
Saudi Arabia Introduces Flexible Solutions for Expired Visas Amid Regional Disruptions
Saudi Arabia’s Online Car Market Accelerates with AI Pricing and Fully Digital Buying Experience
Saudi Arabia Reassesses Defence Strategy as Iranian Drone Threat Drives Shift in Military Partnerships
Drone Strikes Target Saudi Arabia, Kuwait and Bahrain as Regional Conflict Intensifies
Japan and Saudi Arabia Align Efforts to Ease Rising Tensions with Iran
Saudi Crown Prince and Italy’s Meloni Strengthen Strategic Ties in High-Level Talks
SpaceX Explores Potential Five Billion Dollar Investment from Saudi Sovereign Wealth Fund Ahead of IPO
Saudi Arabia Lifts Key Import Barriers to Expand Access for U.S. Beef Exports
Saudi Arabia Enforces Strict Travel Penalties for Visits to Restricted Countries
Italy’s Meloni Embarks on Strategic Gulf Tour to Address Energy Security and Regional Stability
Saudi Film Festival Rescheduled to Summer as Regional Tensions Continue
Saudi Arabia Reports Forty Two Point Six Billion Dollars in Foreign Tourist Spending in 2025
Saudi Crown Prince and Russian President Hold Strategic Call on Escalating Regional Crisis
Saudi Arabia Advances Rail Network as Strategic Alternative to Strait of Hormuz Shipping Route
Ruanyun Edai Launches Saudi Arabia Hub With Forecast of Ten Percent Revenue Growth
Greek Defence Minister Visits Troops in Saudi Arabia Following Successful Missile Interception
Saudi Arabia Expands Global Strategy With Focus on African Critical Minerals
SpaceX Explores Potential Five Billion Dollar Investment From Saudi Fund Ahead of Possible IPO
US Central Command Dismisses Iranian Claim of Mass Casualties Among American Personnel in Saudi Arabia
Co-Diagnostics to Establish Molecular Diagnostics Facility in Saudi Arabia Through Joint Venture
Trump Engages Saudi Crown Prince in Talks on Potential Iran Ceasefire
Saudi Arabia’s Sadara Suspends Operations as Supply Chain Disruptions Intensify
Saudi Arabia Accelerates Energy Shift by Trading Oil Revenues for Battery Investments
Saudi Arabia Introduces Flexible Options for Expired Visas Amid Regional Disruptions
Online Narratives Surge as Iran–US Tensions Spill Into Digital Arena Following Trump Remarks
Saudi Arabia Urges Trump to Seize Strategic Moment as UAE Weighs Ground Deployment
Saudi Arabia Redirects Nearly One Million Barrels of Oil Daily Away from Strait of Hormuz
Saudi Arabia Carries Out Execution of Businessman Linked to 2011 Qatif Unrest
Ukraine–Saudi Defense Pact Signals Rising Demand for Battlefield Expertise
Saudi Arabia Balances Diplomacy and Defense Preparedness Amid Iran Conflict
×