A Qlik®, a global company in data integration, data quality, analytics, and artificial intelligence (AI), revealed the results of a survey on American consumers' post-party item return habits. The results highlight a major challenge for retailers: managing an increase in returns that overloads supply chains and affects profitability, while balancing consumer expectations for fast and cost-free processes.
The research reveals key consumer behaviors during the peak return season, highlighting both operational challenges and opportunities for retailers to adopt smarter strategies. Returns of low-value items are particularly predominant, intensifying the burden on retail operations.
Main Research Results:
- Consumers act quickly: 68% of shoppers return gifts within a week of the holidays.
- In-store returns increase loyalty: 91% of consumers are more likely to shop online with retailers that offer in-store return options, such as Amazon's Whole Foods Returns Center.
- Impulse purchases add value: 20% of consumers typically spend more than the value of the item they return, creating opportunities for brick-and-mortar stores that have e-commerce return locations.
- Shipping fees create frustration: 54% of consumers cite shipping or restocking fees as their biggest frustration with returns, a number that rises to 60% among high-income consumers who earn more than $100,000 per year.
- Low value returns predominate: 55% of shoppers return items worth less than $100, while 87% report returning merchandise worth $500 or less.
The January return season highlights the urgent need for retailers to rethink their strategies. Dealing with post-party returns involves significant logistical and financial challenges, but also presents an opportunity to strengthen customer loyalty and discover new revenue streams.
"The holiday season exposes a growing problem for retailers: a large number of returns of low-value items that significantly impact after the celebrations," says Mike Capone, CEO of Qlik. With the right insights, retailers can turn January returns, which are an expensive headache, into an opportunity to protect margins and manage resources more effectively. The wave of returns won't stop, but smarter, data-driven strategies can help retailers reverse this situation.
The research results point to the potential of predictive analytics and data-driven tools to help retailers optimize their operations. Insights ranging from identifying peak return periods to the most frequently returned items can empower companies to manage resources more efficiently and plan for the January sales period.
Research Methodology:
Qlik's research was conducted by Wakefield Research with 1,000 adults in the United States aged 18 and older, between December 11 and 15, 2024, using an email invitation and an online survey. The data were weighted to ensure accuracy.
