online returns versus brick and mortart

Online Retailing Hurt By The Other ROI

eCommerce is growing at an astounding rate, 14% in 2014 alone, creating a $1.5 trillion industry.

Unfortunately for online retailers, ROI can mean Return Of Inventory more than it can mean Return On Investment.

This holiday season, Deloitte projects online returns will EXCEED 30% of all purchases, which does not bode well for businesses counting on online sales to drive profit margins higher.

Contributors to the high rate of returns include:

  • items do not fit
  • the incorrect item was shipped
  • the items arrived damaged
  • the product was not what the buyer expected

Conversely, brick-and-mortar retail stores see less than a 9% return rate on average, due to the ability to see/touch/try on merchandise before they purchase.

The infographic below explains in more detail the benefits brick-and-mortar stores provide over online retailing that contribute to the delta between return rates for both channels.

online returns for holiday shopping

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