The cost of returning online orders has risen so much for retailers that it is easier for them to return money to a customer by allowing them to keep the purchase for themselves.

In 2021, a $ 50 return will cost an average of $ 33 - 59% more than in 2020, according to Optoro, the returns company. Typically, online retailers are tasked with quickly processing returns and returning items to their virtual shelf, minimizing wear and tear: the sooner the item returns to the warehouse, the less markdown it will incur, explains Optoro CEO Tobin Moore.

The company owns warehouses where it handles and stores goods from retailers such as American Eagle, Target, Bed Bath and Beyond, and others. Optoro software is used to register items, ensure returns, and re-include the product in a new sale. Many companies accumulate their returns in warehouses, and then dispose of them quarterly or twice a year, reselling at discounts or liquidating, explains Tobin Moore.

Lately, he said, labor shortages and supply chain problems have affected the cost of returning goods. With about three out of ten online purchases returning, according to CBRE Supply Chain, some retailers, notably Amazon, sometimes recommend that shoppers keep the items they don't like. It would have been too expensive to process a return, Moore said. He also warns against trying to cheat the system in order to get free stuff.

"This is where tracking is involved, which will determine if consumers are taking advantage of the system."

According to Mastercard SpendingPulseTM, U.S. retailers have recorded 8.5% sales growth this holiday season from Nov 1 to Dec 24 compared to 2020. Online sales are up 11%.

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