How many of you keep every gift you receive on Christmas? How many of you return some? Do you know what it costs businesses when you return them?
In the United States in 2015, products totaling up to $284 billion were returned to the stores. In 2013, the total was $267 billion.
Almost 1/3rd of gifts purchased online are returned. Not all merchandise can be resold and some have to be discounted, which costs retailers up to 4.4% in revenue.
But companies such as Best Buy refuse to let that knock them down. In 2013, the company actually lost 10% in revenue due to returns. Now, the stores have floor space dedicated to selling refurbished products. It is called the Best Buy Outlet on their website.
Gap and Neiman Marcus have outlet stores that returned merchandise can be sent to be sold at a cheaper price.
But for some retailers, returned merchandise is liquidated or sent to flea markets, pawn shops, and discount stores and products that are too inexpensive end up not being worth the cost of shipping back to vendors.