We are now into the home stretch of the holiday shopping season—the biggest retail bonanza of the year. By now, many shoppers have already made their purchases and are putting the final touches on their gifts. Some of us procrastinators have not even started. Isn’t that why online shopping was invented?
Here are some interesting facts about Americans’ holiday shopping patterns. The National Retail Federation estimates that consumer spending for the holidays will average $902 per person. Some $641 of that will be for gifts, with the remainder spent on food, decorations, and other holiday items.
Many of those purchases will be online, where more than 21% of all consumer transactions now occur. A recent report from DHL eCommerce reveals that 61% of U.S. shoppers buy online at least once a week, and 84% browse online one or more times a week.
We also buy a range of goods that way—63% buy clothing and footwear through e-commerce sites, according to the DHL report. Next most popular were consumer electronics at 33%, followed by health supplements at 30%.
That first category is interesting, because apparel and footwear are also among the most widely returned items, especially when bought as gifts. Either they don’t fit properly, or they aren’t quite what the recipients had in mind—which means that each January, retailers must cope with a flood of returns.
Of course, returns are not a seasonal phenomenon; consumers return goods—particularly those bought online—year round. Between 25% and 35% of all goods purchased via e-commerce are returned, depending on whose figures you believe. By comparison, only 8% to 9% of products bought in stores, where we can see the actual items and try on clothing and shoes, end up being returned.
Try-ons are not possible with apparel sold online, which leads to the common practice of “bracketing,” where customers order an item in multiple sizes, pick the one that fits best, and send back the rest. The seller typically absorbs the reverse logistics costs—and those costs can be significant. The retail value of returned consumer items totals around $745 billion each year. According to Narvar, a company that helps retailers manage the post-purchase customer experience, more than 90% of returned products have nothing wrong with them. They simply weren’t wanted or needed.
So as you make those final holiday selections, help your fellow supply chain professionals. Choose your gifts wisely to reduce the chances they’ll be returned. And remember, gift cards are always nice.
