LOUISVILLE, Ky. (WDRB and FoxBusiness) -- UPS expects to handle a record 1.9 million packages Thursday, known as National Returns Day, as consumers return that ugly Christmas sweater or that ill-fitting dress.
The company said that the number of return packages this year was expected to rise 26% from last year, setting a record for the seventh consecutive year, reflecting the continued growth of e-commerce.
The e-commerce sector is growing much faster than overall retail sales, but still makes up only about 11% of overall retail sales, according to the U.S. Department of Commerce. In the third quarter, overall retail sales reached nearly $1.4 trillion, up 4% compared to a year earlier. E-commerce sales, at about $155 billion, rose 16.9%. The dollar figures are adjusted for seasonal variation.
UPS said in a news release that the ease with which consumers can return products, coupled with shippers’ flexibility and transparency, has an enormous impact on return customers. According to a UPS survey, 73% of online shoppers say “the returns experience affects their likelihood to buy from a retailer again.”
In a 2018 report from Appriss Retail and National Retail Federation, about 10% of goods sold in the U.S. go back to retailers every year, resulting in roughly $369 billion in lost sales, according to a story on FoxBusiness.
An Oracle survey indicated that 77% of shoppers were expected to return at least one of their gifts this year.
Shoppers are most likely to return apparel, because of inconsistent sizing.
UPS is the Louisville area’s largest employer, by far, with more than 20,000 workers.
Copyright 2020 WDRB Media and FoxBusiness. All Rights Reserved.
