The trend: Retailers like Macy’s, Asos, and Boohoo are struggling with a rising tide of returns as consumers adjust their spending patterns amid rising inflation and revert to pre-pandemic habits.
How we got here: There are two main reasons for rising returns: inflation and fashion changes.
The cost of returns: Online returns are an expensive and growing problem for retailers, costing on average 21% of their order value, per Pitney Bowes.
How retailers are responding: Some retailers, like Boohoo, are taking the opportunity to reevaluate their returns policy.
Why this could backfire: Charging customers for returns could affect brand loyalty by causing shoppers to cut back on purchases or switch to other retailers.
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