New Report Reveals 2022 Retail Returns Rate Remains Flat
A new report by the National Retail Federation and Appriss Retail reveals that despite 29 consecutive months of retail sales growth, the average rate of return for retail merchandise in 2022 is expected to remain flat at 16.5%, with consumers expected to return over $816 billion worth of merchandise.
As the retail industry continues to evolve, one of the biggest challenges facing retailers today is the increasing number of merchandise returns. This not only results in lost revenue for retailers, but it also has a significant environmental impact as many of these returned items end up in landfills.
According to a recently released report by the National Retail Federation and Appriss Retail, consumers are expected to return more than $816 billion worth of retail merchandise purchased in 2022. Despite 29 consecutive months of retail sales growth, the average rate of return has remained flat at 16.5%. This means that for every $1 billion in sales, retailers incur $165 million in merchandise returns.
To address this problem, Arrive has developed a solution called Returns to Recommerce™. Our model helps retailers and brands improve their bottom line and be more environmentally sustainable by reselling returned items. We accept returns that are deemed "non-new" due to small issues such as a deodorant stain, perfume scent, or loose button. Instead of discarding these products, Arrive cleans, repairs, grades, and lists them onto a brand-certified resale site that’s fully built, powered, and managed by Arrive.
Through this process, retailers can resell about 90% of the non-new returns they receive, resulting in significant cost savings and an improved bottom line. By giving products a second life, retailers can also reduce their environmental impact and make a positive contribution to the sustainability of the retail industry.
In conclusion, returns present a major challenge for retailers, but with the right solution, they can also be an opportunity to drive additional sales and improve their bottom line. Arrive's Returns to Recommerce™ model provides a win-win solution for retailers and customers, by making it easy for customers to return their items and for retailers to resell and recycle the returned items. Not only can retailers save the cost of returns, but it can also be a great move towards sustainability by giving a second life to the returned items.