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The gift is the wrong color. It’s two sizes too big. Or it’s just wrong — as in why in heaven’s name would Uncle Larry think you needed taco holders?
Next comes the aggravation of returning the gift to the retailer, which entails a dreaded postholiday trip to the mall or the search for a suitable cardboard box and the always-missing tape. But as you consider returning holiday gifts this year, take heart: Retailers, who recognize returns can be an opportunity for more sales, are learning to streamline an often fraught process. That said, return with care.
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“A return is actually an opportunity for retailers to build loyalty,” says Mark Mathews, vice president of research and industry analysis for the National Retail Federation (NRF). On average, 16.5 percent of sales result in a return, according to the NRF, but each return brings customers back into a store or to a website. And if the process is efficient, it encourages them to shop there again, Mathews adds.
That goal has led to partnerships between retailers and third-party logistics companies that allow consumers to drop retail returns at places like UPS stores, Staples, Kohl’s or Whole Foods Markets. In some cases, consumers no longer have to box or label the item. Instead, they navigate the return online for an exchange, refund or merchandise credit, then receive a QR code from the retailer that is scanned at the drop-off site. That’s similar to how Amazon handles most returns, allowing them to be mailed or dropped off at counters or self-service lockers located at both large and small retailers.
A good return experience lowers the hassle and cost for both sellers and buyers, says David Sobie, founder of Happy Returns, a third-party return service now owned by PayPal. Happy Returns manages “return bars” in retail outlets such as Ulta Beauty and Staples, which accept online merchandise from Levi’s and other online retailers. Returns are then bundled before being shipped to the retail home base, which cuts shipping costs.