Retailers brace for flood of returns from online shopping

A customer is shown at the exchanges and return counter in a Target department store early Wednesday, Dec. 23, 2020, in Glendale, Colo. Shoppers, who can't touch or feel products they're ordering, are expected to return items during the holiday season at a rate double from last year, costing retailers roughly $1.1 billion, according to Narvar Inc., a software and technology company that manages online returns for hundreds of brands. That puts retailers in a conundrum: they don't want the returns, but they also want to make shoppers feel comfortable to freely buy without worry. (AP Photo/David Zalubowski) A customer is shown at the exchanges and return counter in a Target department store early Wednesday, Dec. 23, 2020, in Glendale, Colo. Shoppers, who can't touch or feel products they're ordering, are expected to return items during the holiday season at a rate double from last year, costing retailers roughly $1.1 billion, according to Narvar Inc., a software and technology company that manages online returns for hundreds of brands. That puts retailers in a conundrum: they don't want the returns, but they also want to make shoppers feel comfortable to freely buy without worry. (AP Photo/David Zalubowski)

By ANNE D'INNOCENZIO / AP Retail Writer December 25, 2020 5 min read

NEW YORK (AP) – A huge surge in online shopping during the 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.