Dive Brief:
- Early reads from this holiday season show shoppers are returning fewer goods. Returns were down 2.5% year over year from Nov. 1 to Dec. 12, according to a report by Adobe Analytics. In the seven days following Cyber Week, they declined 0.1%.
- Returns are expected to increase now that Christmas has passed. For the period between Dec. 26 and Dec. 31, returns are projected to rise by 25% to 35% compared to earlier in the season.
- Adobe predicts return levels will remain elevated in the first two weeks of January, by 8% to 15%.
Dive Insight:
During a major returns period for retailers, Adobe Analytics data shows consumers are using their mobile devices to shop, but their desktop devices to conduct returns. Around 39% of returns that occurred between Nov. 1 and Dec. 12 happened on mobile, while over half of overall online spend during that time was driven by mobile devices.
Overall, between Nov. 1 and Dec. 12, shoppers spent $187.3 billion online, a 6.1% increase year over year, per the report. During that shopping period, home products led the way, with sales of refrigerators and freezers up 400%, home security products up 380%, washers and dryers up 380% and holiday decor up 350% year over year.
How retailers handle returns can change the way shoppers purchase, including what channels they use. Retailer return policies influence the purchasing decisions of most consumers, according to a 2024 report by ICSC. If asked to pay for an online return, a majority of shoppers said they would be more likely to return an item in stores.
While convenient for shoppers, returns are a hefty operational cost for retailers. Shoppers returned a projected $890 billion in merchandise in 2024, representing nearly 17% of retailers’ annual sales, according to a report by the National Retail Federation.
