The holidays are a time of presents, gifts, and lots of sales for retail companies. But post holidays heading into the New Year is a time of reconciliation….It’s no more a gift that keeps on giving. In fact, return and exchange rates soar during the last week of the year and first few weeks of the New Year.
Americans returned a total of $260.5 billion in merchandise in 2015, with $63 billion of it coming from holiday sales alone, according to the National Research Foundation. Additionally, the CBRE Group found that the total value of returned goods bought online during the 2016 holiday season will range from $14 billion to nearly $29 billion.
Returns hit online and traditional stores differently, with 30 percent of products being returned when purchased online versus only 8.89 percent being returned to brick-and-mortar stores, according to research compiled by Invesp in 2016. If you’re an online retailer, you’ll potentially be hit harder by returns as the new year starts to kick into action.
About 92 percent of consumers will make purchases again if the return process is painless, according to research compiled by Invesp in 2016. However, some retailers are shortening the timeframe which returns can be made in order to lessen potential losses. For instance, a survey from ConsumerWorld.org found that all items must be returned within one year at Macy’s, “premium electronics” have a deadline of Jan. 31 at Kohl’s, and major appliances have up to 90 days at Costco.
There’s a better way to offset potential losses, though, without changing your return policy. Midas Exchange can help you offset these potential first quarter losses from returns with our vast amount of resources and exceptional media efficiency.
Trusted by more than 95 clients from a wide range of industries as the gold standard in corporate trade finance, Midas Exchange delivers superior media quality and accountability in corporate trade transactions.
What differentiates Midas Exchange? We are owned by WPP, the largest advertising conglomerate in the world that specializes in purchasing underperforming assets, and as such are empowered to deliver savings and financial gain. As such, we have access to the best of the best in media buying when it comes to remarketing your underperforming assets. These resources allow Midas Exchange to plan and deliver transformative media and asset trading programs that give higher ROI and sales revenue for clients and partners.
Get the full value out of your holiday returns with the help of Midas Exchange.