Retailers in the United States can pay for “extended” inventory return seasons – 12/29/2021

By Siddharth Kevale and Haryana McLimore

(Reuters) – Major retailers in the United States’ long-term revenue policies, launched this year during epidemics, could face significantly higher costs if shoppers decide to repay the record $ 112 billion in gift items purchased during the extended holiday shopping season.

Retailers entered the middle of the supply chain stalemate during the 2021 holiday season, with no shortage of inventory since 1992.

In the United States, many launched Christmas ads in early September to dilute the impact of shipping and labor shortages for more months than the traditional peak shopping days between Thanksgiving and Thanksgiving.

Retailers have also attracted shoppers with “extended” revenue policies. Apple, Sox Fifth Avenue and Nike are among the networks that allow you to return their holiday purchases after 60 or 90 days instead of the business standard 30 days.

But this extended revenue process, which includes shipping costs, cleaning and re-packaging fees, can weigh on retailers ‘higher costs and companies’ profit margins.

Without the expectation that the disruptions in the global supply chain will subside by at least 2023, the “return” problem will never disappear.

“Returns will be a big part of the focus of the issue over the next two years because the costs associated with operations are expected to affect revenue.

According to P-Stock Solutions, which manages online retail sites for retailers, US buyers are projected to withdraw $ 112-114 billion worth of inventory in the coming weeks. Including Walmart, Costco Wholesale and Best Buy.

In total, B-Stock estimates that about $ 43 to $ 45 billion in revenue will come from products purchased online.

(Siddharth Kevale in Bangalore and Ariana McLimore in New York; Lisa Birdlin Additional Reporting in Los Angeles)