Striking a balance between returns policies and logistics costs
- Walmart increases return shipping rates for seller-fulfilled orders
- Retailers balancing consumer-friendly returns policies and minimizing reverse logistics costs
- Online sellers face challenges in crafting effective returns strategies
- Projected $247 billion worth of online returns in the U.S. retail industry by 2023
- Walmart Marketplace sellers can use the “Keep It Rule” to avoid return shipping fees
- “Keep it” policies are popular for low-cost items that are not economical to ship back
Walmart has increased return shipping rates for seller-fulfilled orders as businesses navigate the challenge of balancing consumer-friendly returns policies with minimizing reverse logistics costs. Online sellers, in particular, face the pressing challenge of crafting effective returns strategies. According to projections by the National Retail Federation and Appriss Retail, online returns in the U.S. retail industry are expected to reach $247 billion worth of merchandise by 2023, accounting for 17.6% of total online sales. This surpasses the projected share of in-store returns for brick-and-mortar shopping. Walmart Marketplace sellers have the option to utilize the "Keep It Rule" to avoid paying for return shipping, allowing customers to keep the items and receive a full refund. This approach is especially cost-effective for low-cost items where the expenses of shipping and processing outweigh the product’s value. A report from goTRG, a returns management solutions provider, found that 59% of surveyed U.S.-based retailers have adopted "keep it" services for returns that are not economically viable to ship back.
Factuality Level: 8
Factuality Justification: The article provides relevant information about how Walmart has adjusted return shipping rates for seller-fulfilled orders and the challenges faced by online sellers in crafting effective returns strategies. It includes statistics and insights from industry experts to support the discussion. The information presented appears to be well-researched and objective, without significant bias or misleading content.
Noise Level: 3
Noise Justification: The article provides relevant information about Walmart’s return shipping rates for seller-fulfilled orders and the challenges faced by online sellers in crafting effective returns strategies. It includes projections on online returns in the U.S. retail industry and insights on the ‘Keep It Rule’ on Walmart Marketplace. The article stays on topic, supports its claims with data and examples, and offers insights into the evolving landscape of returns policies in e-commerce.
Financial Relevance: Yes
Financial Markets Impacted: Walmart and other online sellers
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the changes in return shipping rates for seller-fulfilled orders, which can impact the financial performance of Walmart and other online sellers. However, there is no mention of any extreme event or its impact.
www.retaildive.com