The volume and cost of returns continued to climb in 2023 but the costs have been outpacing the growth of returns volumes since Q2 2022 according to the Reverse Logistics Association (RLA) Returns Index.

Higher transportation rates and surcharges, labor costs, warehousing and other costs drove this index data point to its highest point in Q3.

“It can be as expensive as 75% of the value of the unit, or 100% or above,” goTRG CEO Sender Shamiss, told CBS MoneyWatch in December 2023. “Shipping costs eats up huge amount of the value of the good, so companies determine what it costs to take product back and if they’re underwater, they say, ‘Keep it.’”

According to a goTRG survey, one in three retailers give consumers just seven days to send goods back, or tack on fees for bulky goods to discourage consumers from making returns. About 40% of retailers charge for an online return, up from 31% last year, according to Narvar.

Another reason given for the smaller increase in returns was noted in the survey, “Overall assets available to recover has declined. Customers are holding onto IT equipment for longer periods.”

Q4 Expectations

Survey respondents expected Q4 to be a continuation of higher costs and higher volumes with one comment noting that “Christmas seasonal returns occur mostly in Q1 following Christmas.” Correct, but thanks to the growth of online spending, returns volumes have also ticked up during December.

Still, the expectations are just slight increases in returns volumes and a larger increase in costs – transportation peak surcharges and seasonal workers are the likely reasons behind the cost increases.

Survey Demographics

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About the Reverse Logistics Association and Returns Index

The Reverse Logistics Association (RLA) is the only authoritative body for best practices related to reverse logistics. RLA is a member-driven, global trade association for the returns and reverse industry. The RLA offers information, research, solutions, and facilitates networking introductions for manufacturers, retail companies, and third-party providers. Our goal is to educate and inform reverse logistics professionals globally and be the voice of the reverse industry.

The quarterly returns index is based on a survey that is distributed to RLA members and the community.

Please visit our website to learn more: www.rla.org

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Cathy Roberson