'Tis The Season — To Return Unwanted Gifts

American retailers are expected to take back $95 million of returned goods this holiday season, half of which were purchased online, CNBC's Frank Holland said on "Squawk Box."

Benzinga · 12/26/2019 19:43

American retailers are expected to take back $95 million of returned goods this holiday season, half of which were purchased online, CNBC's Frank Holland said on "Squawk Box."

Online Shoppers More Likely To Return Items 

Some of the largest retailers, including Walmart Inc (NYSE: WMT) and Best Buy Co Inc (NYSE: BBY), are expected to see a 30% year-over-year increase in the value of returned goods, according to data from B-Stock.

The most-returned items this holiday season will be women's apparel, appliances and toys, Holland said.

Return policies are important to online shoppers, as an XPO Logistics survey found 83% of consumers consider a company's return policy before making a purchase, he said.

The survey also found 30% of online consumers are likely to return an item versus just 9% of shoppers who buy offline.

Easy Returns Lead To Customers, Holland Says 

Retailers may need to accept returns as part of the value proposition to customers, Holland said. 

"The easier you make it to send something back, the more likely someone is to buy."

United Parcel Service, Inc. (NYSE: UPS) said it handled 1.6 million e-commerce returns each day last week, and the number is expected to rise Jan. 2 to around 1.9 million returned packages, which is up 26% year-over-year.

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