The ticking time bomb of e-commerce returns
As e-commerce continues to grab share, the cost of returns is getting worse for retailers.
A new article in Forbes lays out the dynamics of the problem: growing e-commerce sales vs. returns.
Return rates for products purchased in physical stores are typically less than products purchased online.
But as e-commerce captures a growing share of all retail sales, omnichannel brands that have high return rates and high return handling costs find themselves in the unenviable position of seeing their marginal economics deteriorate as their online business grows, Forbes writes.
Read more about retail's mounting returns problem here.