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Record-Breaking Returns Season Expected By UBS Following Holiday Shopping Season


Record-Breaking Returns Season Expected By UBS Following Holiday Shopping Season
While this holiday season in the United States has been a record breaking one in terms of shopping and consequent shipping of products, the courier giant United Parcel Service (UPS) now also expects that the number of shipped returns will also reach a record high this year.
The company expects to process about 26 per cent year on year more return packages, at 1.9 million in numbers, on January 2, UPS said on Thursday. This rate of growth of returns this year will be the seventh straight year when the company has handled record number of parcels which further underscores the trend of a continuous shift of purchasing behavior of consumers form offline to online purchasing modes.
"This process is a change from years past, when consumers would rush to physical retailers the day after Christmas and stand in long lines to make returns," UPS said in a press release.
According to a recent study by UPS, customers nowadays give close considerations to the options of returning products while purchasing them. The report found that the purchasing intent of a repurchase from a particular retailer is significantly dependent on their experience making easy returns and replacements, as was opined by 73 per cent of the consumers who were surveyed in the US for the study. More than half or 55 per cent of the online consumers plan to return or exchange any unwanted gifts within a month of receiving them, said the National Retail Federation.
According to a report from Mastercard released on Thursday, e-commerce sales hit a record high in the United States in the weeks leading up to Christmas. The report found that the primary drivers behind the e-commerce boom were delivered by purchase of clothing, accessories and electronics by consumers. There was a 17 per cent growth in purchasing of specialty apparel products. An 8.8 per cent year on year growth in Jewelry sales and a 10.7 per cent year on year growth in electrics sales was also recorded in the report.
The favourite platform among online shoppers still remains Amazon, the report found, primarily because of the flexible customer return policy of the largest e-commerce company of the world. While saying that the holiday season this year was one that was fit for the record books, Amazon said that its top selling products included the Echo Dot, Fire TV Stick and Echo Show 5.

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