London Daily

Focus on the big picture.
Thursday, Mar 12, 2026

Online shopping a boon for retailers, but returns are not: report

Online shopping a boon for retailers, but returns are not: report

A huge surge in online shopping during the coronavirus pandemic has been a savior for retailers, but it comes at a price.

Shoppers are expected to return twice as many items as they did during last year's holiday period, costing companies roughly $1.1 billion, according to Narvar Inc., a software and technology company that manages online returns for hundreds of brands.

Retailers don't want the returns, but they do want shoppers who may not feel safe going to stores to be comfortable buying things they haven't seen or tried on in person.

People have been doing so much online buying since March that carriers like UPS and FedEx were already at full capacity before the holiday shopping season. And online sales just keep soaring. From Nov. 1 though Tuesday, they spiked 32% to $171.6 billion, compared with the year-ago period, according to Adobe Analytics. The massive challenges of shipping COVID-19 vaccines in the weeks and months ahead could put further pressure on the system.

That means shoppers who return items may not get refunds until two weeks after they're sent back to the store, said Sara Skirboll, shopping expert at deals site RetailMeNot.

Many companies are offering more locations where customers can drop off returns, which cuts down shipping costs and gets refunds to shoppers more quickly.

Last year, Kohl’s began allowing Amazon returns at all of its 1,000 stores — customers drop off items for free, with no box or label needed. This year, Amazon customers can also return items at 500 Whole Foods Market stores. That’s in addition to Amazon’s deal with UPS to allow similar drop-offs at UPS stores.



Happy Returns, a Santa Monica, California-based startup that works with about 150 online retailers like Rothy's and Revolve, has increased its number of drop-off locations to 2,600, from more than 700 last year. That includes 2,000 FedEx locations.

“It’s a great time to be in the returns business. Every day, there’s a record,” said David Sobie, CEO and co-founder of Happy Returns, noting he’s processed 50% more returns in December than November.

Walmart, the nation’s largest retailer, announced earlier this week it will pick up items shipped and sold by Walmart.com from customers’ homes for free through a new partnership with FedEx. The service will continue beyond the holiday shopping season.

A growing number of retailers are asking shoppers to not even bother sending back certain rejected items.

When Dick Pirozzolo wanted to return a too-small jersey he bought for $40 on a website called Online Cycling Gear, he was pleasantly surprised with the response. The site told him to keep it, discard it, or give it to a friend or charity — and it will send him the right size for an extra $10.

“I was fine with that,” said the 77-year-old cycling enthusiast from Wellesley, Massachusetts. “I did a good thing for a friend, and I got a new shirt.” The experience, he says, has given him confidence to buy more online this holiday season.

David Bassuk, global co-leader of AlixPartners' retail practice, says stores are increasingly making it easier for shoppers to feel less guilty about returning items.

“If they’re not sure of their size, they order both sizes," he says. "If they’re not sure which color, they order both colors. And if they’re not sure which item, they order them all. But it’s costly to the retailers, and the retailers are not well positioned to handle all the cost.”

On average, people return 25% of items they buy online, compared with only 8% of what they buy in stores, according to Forrester Research’s online analyst Sucharita Mulpuru. For clothing it's even higher, about 30%.

But not all rejected items are the same and have varying levels of depreciation, experts say. After an item is sent back to the retailer, the company must assess its condition and decide whether to resell it, send it to a liquidator or the landfill.

Optoro, a return logistics company, estimates the value of fashion apparel depreciates by 20% to 50% over an eight-to-16-week period. That's why it's so critical to get rejected items back and on sale again quickly.

Returns are also complicated this year because retailers pushed people to buy holiday gifts early to avoid shipping delays and crowded stores, meaning the return window may be closed by the time Christmas rolls around.

Amazon is allowing customers to return items until Jan. 31 for items shipped between Oct. 1 and Dec. 31, giving customers more time to decide. Last year, the policy didn't include items shipped in October.

Rachel Sakelaris, 25, of Newport Beach, California, bought her boyfriend a waterproof backpack on Black Friday, then realized there was a 30-day return policy. She decided to move up the gift exchange to last weekend so he had time to return if he didn't like it.

Buying too early can come with other hazards.

Sarah Huffman, 40, of Chesapeake, Virginia, wanted to get a jump start on the holiday season and spent $600 on Amazon on gifts, including a $60 pair of pajamas and a $90 Xbox game for her five children, in May.

But then her husband, a disabled veteran, quit his job because he felt his boss was too lax with COVD-19 safety protocols. Now, her family is struggling to put food on the table, and she can't return some of the gifts she bought because the return window has lapsed.

“I was trying to take away the stress of the pandemic by buying early," she said. “I didn't realize that basic life choices would find a new low.”

Newsletter

Related Articles

0:00
0:00
Close
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
×