With presents unwrapped, now comes the least fun part: holiday shopping returns.
Consumers return more items during and after the holiday shopping season than at any other time of the year.
This year, shoppers are expected to return up to $95 billion worth of holiday purchases, a projected jump of 15% to 20% over last year, according to B-Stock Solutions. As much as half of that will come from online purchases.
Returns have always been a cost of doing business, but the rise in e-commerce has upped the ante for retailers.
Online returns cut more deeply into profit margins, when adding in the costs of shipping, restocking and potential discounts or write-offs if the items can't be resold.
Just as consumers have come to expect convenience and choice in the way they shop online and in stores, they want an inexpensive and simple return process as well.
"The way retailers handle online returns for the holiday season is setting the stage for their customer engagement going into 2020," said Andy Mantis, chief business officer of 1010data, which provides data and analytical intelligence to asset managers and the retail industry.
Return policies once were merely a necessary task of store operations. Now they are becoming another competitive strategy for retailers to build brand loyalty, Mantis said.