Returns of low-value items after the holidays threaten retail margins, Qlik research reveals

THE Qlik'''(IA), a global company in data integration, data quality, analytics and artificial intelligence, has revealed the results of a survey on the return habits of post-party items of American consumers.The results highlight a major challenge for retailers: dealing with an increase in returns that burdens supply chains and affects profitability, while balancing consumer expectations for agile and cost-free processes.

The survey 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 prevalent, intensifying the burden on retail operations.

Main Results of the Research:

• Consumers act quickly68% of buyers return the gifts within one week after the parties.
• Returns in stores increase loyalty91% Consumers are more likely to shop online with retailers that offer in-store return options, such as drop-off points at Amazon Whole Foods stores.
• Impulse purchases add value20% Consumers typically spend more than the value of the item they return, creating opportunities for physical stores that have e-commerce return points.
• Shipping fees generate frustration54% of consumers cite shipping or replacement fees as their biggest frustration with returns, a number that rises to 60% among high-income consumers who earn more than 100 thousand dollars a year.
• Low value returns predominate55% of buyers return items worth less than 100 dollars, while 87% report having returned goods worth 500 dollars or less.

The January returns season highlights the urgent need for retailers to rethink their strategies. Dealing with post-party returns involves significant logistical and financial challenges, but it also represents an opportunity to strengthen customer loyalty and discover new revenue streams.

The holiday season exposes a growing problem for retailers: a large amount of low-value item returns that deeply affects after 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 will not stop, but smarter, data-driven strategies can help retailers reverse this situation

The survey results point to the potential for 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 businesses to manage resources more efficiently and plan for the January sales period.

Research Methodology:

The Qlik survey was conducted by Wakefield Research with 1,000 U. S. adults aged 18 and older between December 11 and 15, 2024, using an email invitation and an online survey.