UPS is preparing for National Returns Day, happening tomorrow (Jan. 5). According to the company’s website, UPS expects to ship back 1.3 million returns packages to retailers on Thursday, and will handle about 5.8 million returns packages throughout the first full week of January. This means big business for UPS and other parcel services like FedEx, but it’s bad news for online retailers. UPS has estimated that retailers will lose more than $260 billion in returns this holiday season.
Total Retail’s Take: The rise of e-commerce has resulted in one negative side effect for retailers: more returns. Retailers lose a lot of money from returns. However, product returns also gives retailers the opportunity to demonstrate superior customer service. Retailers with great customer service and flexible returns policies have the ability to win future sales from customers completing returns now.