Holiday Returns Exceed $1 Billion According to the Yankee Group Industry Return Rates Almost Double Prior Year's

Feb 09, 2001, 00:00 ET from Yankee Group

    BOSTON, Feb. 9 /PRNewswire/ -- According to the Yankee Group, holiday
 returns for the 2000 holiday season exceeded $1 billion.  Return rates for
 many online retailers are much higher than in prior years - reaching as high
 as 20% to 30% for many retailers.  With online sales in the US exceeding $9
 billion for the fourth quarter of 2000, the dollar volume of returns for the
 holiday season will exceed $1 billion, and could easily approach $1.5 billion.
 The Yankee Group's estimates are based on surveys over the past few weeks of
 online retailers and several returns management outsource providers.
     (Photo: )
     According to Paul Ritter, director of Yankee Group's Online Retail
 Strategies Planning Service, there are many reasons for the higher volume and
 greater return rates for the 2000 holiday season:
     -- Online sales for the 2000 holiday season were 70% higher than the sales
       for the 1999 holiday season;
     -- Online Shoppers "hedged their bets" by purchasing the same product on
       multiple Web sites, with the hope that at least one of the orders would
       arrive in time and the one that didn't would just get returned; and
     -- Shoppers are becoming more comfortable buying products online that have
       traditionally been bought in stores in which consumers can actually
       see, touch, or hear the products they are buying.  Many of these online
       purchases aren't what they were expected to be, so they return the
       items are returned.
     This month the Yankee Group is publishing a research report on reverse
 logistics and best practices for handling returns.  The Report examines the
 issue of reverse logistics, provides an overview of best practices, and
 outlines recommendations for retailers to reduce return rates and improve
 financial performance.  To receive an executive summary of this Report, please
 send an e-mail to
     Hanna Roach Media Relations 617-880-0360
     The Yankee Group (
     As a global leader in technology research and strategic consulting, the
 Yankee Group provides impartial and practical analysis, benchmarking studies,
 best practices audits, custom consulting, and personalized one-to-one client
 inquiry encompassing all areas essential to e-business success: the Internet,
 electronic commerce, communications, wireless/mobile, computing, and
 enterprise applications.  Established in 1970 and headquartered in Boston, the
 company maintains offices throughout North America, Europe, Latin America, and
 the Pacific Rim.

SOURCE Yankee Group