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The Real Cost of Returns
Free returns drive customer satisfaction, but carry a heavy cost in profitability and sustainability.
From our archiveSecond Tide
Published in Supply & Demand Chain Executive, written for 4C Associates.
In 2018, UK fashion retailers faced return costs of approximately £6.6 billion, nearly 10% of the market, and the figure was growing by more than 15% a year. The drivers include refurbishment costs, missed sales peaks and logistics challenges, made worse by the rise of "serial returners" and purchases driven by social media.
Free returns are crucial for customer satisfaction, but they significantly affect profitability and sustainability. Retailers must balance customer expectations with cost management and environmental concerns.
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