PODCAST:Today, Explained
TITLE:Many unhappy returns
DATE:2024-01-05 00:00:00
URL:
MODEL:gpt-4-gizmo
The "Today Explained" podcast episode titled "Many Unhappy Returns," aired on January 5, 2024, provided an insightful look into the world of product returns, particularly focusing on the complex process that unfolds when someone decides to return an item bought online. The episode featured Amanda Mull, a staff writer at The Atlantic.
The Returns Process: The episode began by detailing the initial steps most consumers are familiar with: ordering a product online, deciding not to keep it, and then initiating a return. However, beyond this simple interaction lies a vast and intricate network of logistics, transporters, warehouses, liquidators, recyclers, and resellers. These entities work tirelessly to manage the enormous volume of products that consumers return each year.
Inside a Returns Processing Facility: Amanda Mull visited a processing facility in Lehigh Valley, operated by Inmar Intelligence, a company specializing in reverse logistics and returns liquidation. The facility, sprawling over 300,000 square feet, deals with various returned products, including drugs, rugs, and apparel. One of the employees, Michael, is responsible for handling the apparel returns, examining each item for any defects, and ensuring they are in suitable condition for resale.
Bracketing and Its Impact: The episode highlighted the practice of 'bracketing' where consumers purchase multiple sizes or variations of a product (like clothing or rugs) and return those that don't fit or aren't suitable. This practice, particularly prevalent with online shopping, significantly contributes to the high volume of returns.
Destinations of Returned Products: Depending on the condition and seasonality of the returned items, they might be sent back to the original retailer, sold to liquidators or discount retailers like TJ Maxx and Marshalls, donated, recycled, or in some cases, disposed of. Around 15% of items from multi-brand retailers end up being disposed of due to their inability to be resold or repurposed.
Impact on Retail and Consumer Behavior: The ease of returning products online has fundamentally changed retail and consumer behavior. The return rate for online purchases is significantly higher than for in-store purchases, leading to increased costs and logistical challenges for retailers. In response, retailers are beginning to reintroduce fees for returns to discourage excessive returns and mitigate costs.
Sustainability and Transparency Concerns: The episode addressed the sustainability concerns associated with the high volume of returns and the subsequent waste generation. Retailers often prefer to keep the details of the reverse logistics process hidden from consumers to maintain brand image and avoid highlighting the environmental and economic impacts of returns.
The podcast episode shed light on the often unseen complexities of the returns process in the e-commerce era, highlighting both the logistical challenges faced by retailers and the environmental implications of consumer purchasing behaviors.
