What: a study by CBRE suggests that the cost of return in the US for the holiday season will jump +73% from the previous 5 years average.

Why it is important: no retailer has cracked the code yet to bring profitability in e-commerce, the fastest-growing channel in terms of sales.

CBRE estimates that, in the US, the 2020 holiday season will lead to a +40% increase in e-commerce this year (to USD 234.9 bn) and expects that a value of USD 70.5 bn will be returned, which represents a jump vs. last 5 year average of +73%.

For the average return, return logistics is estimated to represent 59% of the original sale price of the item. CBRE points out the difficulty to balance consumer demand, profitability and sustainability commitment due to returns impacts.

US Viewpoint Reverse Logistics Dec 2020