Maintaining an exceptional customer experience has proven itself challenging over the course of the pandemic, especially since many organizations are currently concerned with talent recruitment and retention. However, many companies have made an effort to keep their customers happy and satisfied. One such method that retailers have been using is an extension of return policies.
Generally, the average return policy allows for return window of 30 days. Since the onset of the pandemic, some businesses have extended this to 60 or even 90 days. However, an analyst at RSR Research has revealed that such generous return policies can get rather costly, especially during the holiday season.
Brian Kilcourse, the RSR Research analyst, said that the returns problem is likely on the radar for most organizations in the coming two years, since the costs associated with the activity will likely affect the bottom-line tremendously.
This news comes in the wake of massive supply chain issues that has strained retailers throughout the holiday season of 2021. According to data from B-Stock Solutions, returned merchandise is projected to be a record-setting US$112 billion to US$114 billion in the US alone.
According to the US National Retail Federation, consumers returned approximately US$101 billion worth of goods in 2020.