Returns Costing Retailers Billions

Globally, retailers are losing a large amount of sales due to returns, as well as out-of-stock and overstock merchandise.

According to Women’s Wear Daily, a study conducted by the retail analysis firm IHL Group (Franklin, Tenn.) found that companies worldwide are losing $1.75 trillion in sales. Of that, the greatest amount of loss is due to returns (costing retailers $642.6 billion) and then out-of-stocks ($634.1 billion). Overstock sales cost retailers $471.9 million.

Altogether, those losses are preventing stores from adding approximately 11.7 points to their revenue growth.