6 ms·

16.6% of US retail sales in 2021 were returned by consumers

41 points by minhduong243 5y ago

minhduong243 5y ago
The rate of returns for online sales in 2021 was 20.8%. 10% of such returns was deemed fraudulent
google234123 5y ago
Well, this is one reason things are slightly more expensive now.
- HWR_14 5y ago
  Why would that be? If you return something to Amazon, Amazon charges the shitty supplier. Amazon doesn't take the hit. The good suppliers don't take the hit.
  - google234123 5y ago
    I would guess that Amazon does take a small or moderate hit with every return. And if the rate is this high then even "good" supplies will be affected (and probably are targeted more for fraud too).
  - rat9988 5y ago
    Doesn't the supplier have a say on price??
    - HWR_14 5y ago
      How does that relate? In my scenario the costs are focused on bad suppliers. So their costs go up relative to good suppliers, the bad suppliers go out of business, good suppliers remain unharmed.
  - missedthecue 5y ago
    Are you saying returns are costless? At the end of the day, someone's shrink rate is expanding, and this had a direct impact on consumer prices.
    - HWR_14 5y ago
      I'm saying that, given most online retailers are moving products from 3rd parties, the costs are primarily going to be focused on those third parties. And among the third parties those whose businesses necessitate more returns (bad sizing info online, poor build quality) are worse. Those companies getting punished in the market is fine, and seems healthy. Companies that make it easier to order the genuine article you want will do better. Those with counterfeits, an inabilty to deliver the correct item, or bad size information will go out of business
- cromka 5y ago
  “ The 2021 total rate of returns (16.6 percent) is up from 10.6 percent during 2020, but online returns in 2021 are in line with recent years at an average of 20.8 percent. ”
Epiphany21 5y ago
This doesn't surprise me the slightest. Goods sold in online marketplaces like Amazon or eBay have taken a nose dive in durability and finish. The review farming has also gotten so out of control that a nearly five star rating can't even be trusted. If these companies weren't as good as they are with their return and refund policies they'd be out of business overnight.
- xenadu02 5y ago
  It's difficult to find anything good these days. Search "pedestal fan" on Amazon and you'll be flooded with Chinese imports without any indication of quality or even any ability to search for specific features (eg continuous speed adjustment vs 3 fixed speeds), requiring you to read the detailed reviews for the thousands of search results. If I want to buy from random Chinese suppliers I'll go to AliExperess.
  - klysm 5y ago
    Nowadays I view Amazon as Aliexpress with a markup for faster shipping, it’s literally the same shit just more expensive.
    - nfriedly 5y ago
      And easier returns. And a marginally better interface (which isn't saying much.) But yeah, the majority of the products are the same thing with a higher price tag.
  - Epiphany21 5y ago
    It gets even worse. Products you've already purchased and enjoyed will be silently replaced with cheaper, shittier versions over time because these companies are betting we're all too dumb to notice. The last thing I bought before I closed my Amazon account this year was one of those little Honeywell desk fans. It was the same model I had before at the same price. The new one was made of brittle, horrible plastic already cracked out of the box that feels rough and nasty to touch. If you leave it on for 3+ hours the motor overheats. It's not the same fan, but it sure is advertised like it.
z3ugma 5y ago
Remember that NRF is an industry lobbying group. Consider what influence they are trying to sell with data like this.
- gruez 5y ago
  >Consider what influence they are trying to sell with data like this. Well? What is it? Getting the government to legislate shorter return windows? Retailers can already declare "final sale" if they wanted to.
  - ashtonkem 5y ago
    Because if they do declare all sales final, it kills sales. Customers do not like final sale, and regularly go for sellers they trust to take care of them. Generally final sales are only acceptable to consumers on things that obviously have logistical, regulatory, or cleanliness concerns. If return windows were shortened via legislation, it would massively advantage shadier resellers, as nobody would be able to offer better return polices to offset a higher end price.
    - morelisp 5y ago
      What would be the legal basis for a maximum window for returns?
tmp_anon_22 5y ago
There's a growing industry of "resellers" who buy an in-demand product and attempt to sell it for more, and if it doesn't work they can just return it. Larger ticket items like electronics (especially next-gen game consoles) are one example.
- jstarfish 5y ago
  Ha. The one time I found myself in that position (by accident; missed return window for an in-demand item I couldn't afford), I got scammed by the person I resold the item to-- they accused me of sending them a lesser model. PayPal sided with them.
burntoutfire 5y ago
It can be a good thing for the companies. It could mean that people trust companies to accept their returns enough (which is by no means an obvious thing in less developed economies) that they buy a lot of things just to try them out and see if they like them. Which, overall, increases the sales, as people keep some of that stuff.
- aaron695 5y ago
yakak 5y ago
> The categories with the highest return rates were similar to 2020 metrics: auto parts (19.4 percent), apparel (12.2 percent) and home improvement and housewares (tied at 11.5 percent). What percentage of sales would have to be auto parts to bring the average to 16.6%? I think something is stated incorrectly here.
- Cpoll 5y ago
  Depends on the split between the other ones. Worst-case is 61% (assuming apparel makes up the other 39%). The possible range is between 61% and 63.5%.
vwcx 5y ago
The Atlantic has a fascinating article about what actually happens to these returns: https://www.theatlantic.com/magazine/archive/2021/11/free-returns-online-shopping/620169/ https://www.theatlantic.com/magazine/archive/2021/11/free-re... TLDR: We imagine they're processed/cleaned/resold, but the reality is that the majority of online retailers just throw the returned product away.
- throwawayboise 5y ago
  Some get resold. I've received stuff from Amazon that has clearly been opened, unpacked, repacked, and resold.
blippage 5y ago
Gotta laugh. Seems that we are no longer customers, but consumers; like some open-mouthed whale hoovering up the plankton. Feed me, feed me now! > While retailers have indicated that they are seeing an increase in items returned to stores and online, the upside is that it also provides them with additional opportunities to connect further with customers and provide a positive experience. Yes, because a customer that wastes your time and money is really valuable. That's sarcasm, by the way. I'm actually surprised by the 10.6% return rate in 2020. I buy low-value items, so it's not like I'm taking a punt on much. I almost never return items. What are people playing at? It's straight-down-the-middle guy like me that are ultimately ponying-up for these flakes. eBay is pretty good. Amazon seems to want you to spend at least £20, so I try to avoid them on the whole.
- skellera 5y ago
  Sometimes I buy multiple sizes of things and return the ones I don’t need. It’s mostly a convenience thing. I can go to an amazon locker and quickly return what I don’t need during my normal errands.
  - NoahKAndrews 5y ago
    Please don't do that, returns often get thrown away. https://www.theatlantic.com/magazine/archive/2021/11/free-returns-online-shopping/620169/ https://www.theatlantic.com/magazine/archive/2021/11/free-re...
    - klipt 5y ago
      Problems like that can only be fully fixed by correctly taxing externalities so that they're priced in. Telling one person on the internet to change their behavior won't have much impact.
      - NoahKAndrews 5y ago
        I 100% agree, but it's not nothing, and the person I replied to isn't the only person who saw the comment.
prescriptivist 5y ago
Anecdotal, but I've returned more purchases in the last two years than I did in the last 20 years combined. Part of that though is I have bought way more stuff yearly than I did before. This isn't wise in precarious times, of course, but throughout the pandemic I took up way more outdoors hobbies and home projects than I did in the last 20 years combined, too. I've returned $300 tents, $500 fly fishing waders, $400 ice fishing shelters, fishing poles, etc. Most of this was from being unhappy when I got the product in my hands, but sometimes it was from brick and mortar retail purchases. I will say getting more comfortable with the act of returning stuff has led me to return things as small as a $10 roll of wire that I planned on using to repair my garage door opener but I didn't end up using. Probably a few years ago I would have just tossed it in the junk drawer. I don't know why I've made a mental shift but I have.

41 points by minhduong243 5y ago

minhduong243 5y ago

The rate of returns for online sales in 2021 was 20.8%. 10% of such returns was deemed fraudulent

google234123 5y ago

Well, this is one reason things are slightly more expensive now.

HWR_14 5y ago
Why would that be? If you return something to Amazon, Amazon charges the shitty supplier. Amazon doesn't take the hit. The good suppliers don't take the hit.
- google234123 5y ago
  I would guess that Amazon does take a small or moderate hit with every return. And if the rate is this high then even "good" supplies will be affected (and probably are targeted more for fraud too).
- rat9988 5y ago
  Doesn't the supplier have a say on price??
  - HWR_14 5y ago
    How does that relate? In my scenario the costs are focused on bad suppliers. So their costs go up relative to good suppliers, the bad suppliers go out of business, good suppliers remain unharmed.
- missedthecue 5y ago
  Are you saying returns are costless? At the end of the day, someone's shrink rate is expanding, and this had a direct impact on consumer prices.
  - HWR_14 5y ago
    I'm saying that, given most online retailers are moving products from 3rd parties, the costs are primarily going to be focused on those third parties. And among the third parties those whose businesses necessitate more returns (bad sizing info online, poor build quality) are worse. Those companies getting punished in the market is fine, and seems healthy. Companies that make it easier to order the genuine article you want will do better. Those with counterfeits, an inabilty to deliver the correct item, or bad size information will go out of business
cromka 5y ago
“ The 2021 total rate of returns (16.6 percent) is up from 10.6 percent during 2020, but online returns in 2021 are in line with recent years at an average of 20.8 percent. ”

Epiphany21 5y ago

This doesn't surprise me the slightest. Goods sold in online marketplaces like Amazon or eBay have taken a nose dive in durability and finish. The review farming has also gotten so out of control that a nearly five star rating can't even be trusted. If these companies weren't as good as they are with their return and refund policies they'd be out of business overnight.

xenadu02 5y ago
It's difficult to find anything good these days. Search "pedestal fan" on Amazon and you'll be flooded with Chinese imports without any indication of quality or even any ability to search for specific features (eg continuous speed adjustment vs 3 fixed speeds), requiring you to read the detailed reviews for the thousands of search results. If I want to buy from random Chinese suppliers I'll go to AliExperess.
- klysm 5y ago
  Nowadays I view Amazon as Aliexpress with a markup for faster shipping, it’s literally the same shit just more expensive.
  - nfriedly 5y ago
    And easier returns. And a marginally better interface (which isn't saying much.) But yeah, the majority of the products are the same thing with a higher price tag.
- Epiphany21 5y ago
  It gets even worse. Products you've already purchased and enjoyed will be silently replaced with cheaper, shittier versions over time because these companies are betting we're all too dumb to notice. The last thing I bought before I closed my Amazon account this year was one of those little Honeywell desk fans. It was the same model I had before at the same price. The new one was made of brittle, horrible plastic already cracked out of the box that feels rough and nasty to touch. If you leave it on for 3+ hours the motor overheats. It's not the same fan, but it sure is advertised like it.

z3ugma 5y ago

Remember that NRF is an industry lobbying group. Consider what influence they are trying to sell with data like this.

gruez 5y ago
>Consider what influence they are trying to sell with data like this. Well? What is it? Getting the government to legislate shorter return windows? Retailers can already declare "final sale" if they wanted to.
- ashtonkem 5y ago
  Because if they do declare all sales final, it kills sales. Customers do not like final sale, and regularly go for sellers they trust to take care of them. Generally final sales are only acceptable to consumers on things that obviously have logistical, regulatory, or cleanliness concerns. If return windows were shortened via legislation, it would massively advantage shadier resellers, as nobody would be able to offer better return polices to offset a higher end price.
  - morelisp 5y ago
    What would be the legal basis for a maximum window for returns?

tmp_anon_22 5y ago

There's a growing industry of "resellers" who buy an in-demand product and attempt to sell it for more, and if it doesn't work they can just return it. Larger ticket items like electronics (especially next-gen game consoles) are one example.

jstarfish 5y ago
Ha. The one time I found myself in that position (by accident; missed return window for an in-demand item I couldn't afford), I got scammed by the person I resold the item to-- they accused me of sending them a lesser model. PayPal sided with them.

burntoutfire 5y ago

It can be a good thing for the companies. It could mean that people trust companies to accept their returns enough (which is by no means an obvious thing in less developed economies) that they buy a lot of things just to try them out and see if they like them. Which, overall, increases the sales, as people keep some of that stuff.

aaron695 5y ago

yakak 5y ago

> The categories with the highest return rates were similar to 2020 metrics: auto parts (19.4 percent), apparel (12.2 percent) and home improvement and housewares (tied at 11.5 percent). What percentage of sales would have to be auto parts to bring the average to 16.6%? I think something is stated incorrectly here.

Cpoll 5y ago
Depends on the split between the other ones. Worst-case is 61% (assuming apparel makes up the other 39%). The possible range is between 61% and 63.5%.

vwcx 5y ago

The Atlantic has a fascinating article about what actually happens to these returns: https://www.theatlantic.com/magazine/archive/2021/11/free-returns-online-shopping/620169/ https://www.theatlantic.com/magazine/archive/2021/11/free-re... TLDR: We imagine they're processed/cleaned/resold, but the reality is that the majority of online retailers just throw the returned product away.

throwawayboise 5y ago
Some get resold. I've received stuff from Amazon that has clearly been opened, unpacked, repacked, and resold.

blippage 5y ago

Gotta laugh. Seems that we are no longer customers, but consumers; like some open-mouthed whale hoovering up the plankton. Feed me, feed me now! > While retailers have indicated that they are seeing an increase in items returned to stores and online, the upside is that it also provides them with additional opportunities to connect further with customers and provide a positive experience. Yes, because a customer that wastes your time and money is really valuable. That's sarcasm, by the way. I'm actually surprised by the 10.6% return rate in 2020. I buy low-value items, so it's not like I'm taking a punt on much. I almost never return items. What are people playing at? It's straight-down-the-middle guy like me that are ultimately ponying-up for these flakes. eBay is pretty good. Amazon seems to want you to spend at least £20, so I try to avoid them on the whole.

skellera 5y ago
Sometimes I buy multiple sizes of things and return the ones I don’t need. It’s mostly a convenience thing. I can go to an amazon locker and quickly return what I don’t need during my normal errands.
- NoahKAndrews 5y ago
  Please don't do that, returns often get thrown away. https://www.theatlantic.com/magazine/archive/2021/11/free-returns-online-shopping/620169/ https://www.theatlantic.com/magazine/archive/2021/11/free-re...
  - klipt 5y ago
    Problems like that can only be fully fixed by correctly taxing externalities so that they're priced in. Telling one person on the internet to change their behavior won't have much impact.
    - NoahKAndrews 5y ago
      I 100% agree, but it's not nothing, and the person I replied to isn't the only person who saw the comment.

prescriptivist 5y ago

Anecdotal, but I've returned more purchases in the last two years than I did in the last 20 years combined. Part of that though is I have bought way more stuff yearly than I did before. This isn't wise in precarious times, of course, but throughout the pandemic I took up way more outdoors hobbies and home projects than I did in the last 20 years combined, too. I've returned $300 tents, $500 fly fishing waders, $400 ice fishing shelters, fishing poles, etc. Most of this was from being unhappy when I got the product in my hands, but sometimes it was from brick and mortar retail purchases. I will say getting more comfortable with the act of returning stuff has led me to return things as small as a $10 roll of wire that I planned on using to repair my garage door opener but I didn't end up using. Probably a few years ago I would have just tossed it in the junk drawer. I don't know why I've made a mental shift but I have.