Total value of U.S. returns in 2021 exceeds $760 billion, 10% of which are fraudulent returns

The report pointed out that in 2021 , US retail sales reached 4.583 trillion US dollars. Among them, the value of goods returned to retailers was 761 billion US dollars, accounting for about 16.6% of the total value of goods. This proportion is higher than 10.6% in 2020. Among these returned goods, 78.4 billion US dollars (10.3%) were fraudulent returns. This means that for every $100 of returned goods accepted, retailers will lose $10.3 due to return fraud.

In addition, in 2021, the total online sales of the US retail industry reached 1.05 trillion US dollars, accounting for about 23% of the total retail sales. The value of goods returned to retailers was 218 billion US dollars, accounting for about 20.8% of the total online sales. Similar to the total retail sales, this proportion was also higher than 18.1% in 2020. Among the online returned goods, 10.6% were fraudulent returns, involving an amount of 23.2 billion US dollars.

The National Retail Federation also counted the U.S. holiday sales in 2021. The data showed that the total holiday sales in the United States last year was $887 billion. Among them, the value of returned goods was $158 billion, accounting for 17.8% of the total holiday sales. The amount of fraudulent returns was $17 billion, accounting for 10.8% of the value of returned goods.

The categories with the most returns were similar to 2020: auto parts (19.4%), apparel (12.2%), and home decor and household goods (tied at 11.5%).

Mehmet Sekip Altug, an associate professor of business at George Mason University , said that in the past retailers tended to ignore what happens after a sale, but as online sales have increased, returns have become a serious issue and it is no longer a secondary issue.

For some retailers, the returns dilemma has inspired acquisitions and new strategies. Walmart bought virtual fitting room startup Zeekit for an undisclosed amount, while Best Buy opened an online store focused on products covered by warranties, such as TVs. In addition, companies like Amazon say they can refund but not return products, as a way to save the hassle and cost of handling large, customized or low-value items.

USA

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