B-Stock, a resale platform that remarkets returned/excess merchandise, says retailers are bracing for as much as $160 billion in merchandise to come back after the holidays. Some 82% of consumers say free returns are a major factor in where they shop this season and, because of restocking costs and operational hurdles, only a fraction of those returns ever make it back onto primary store shelves (virtual or otherwise). 

B-Stock, which handles returns for nine of the top U.S. 10 retailers including: Amazon, Target, Costco, Walmart, Home Depot, Best Buy, and Dick’s Sporting Goods, says its data indicates that return rates have more than doubled since 2019, and will reach 17% this holiday season. The number rises to 19% for online purchases, and gets closer to 30% for online apparel purchases.

About 71% of consumers say they are less likely to shop with a retailer again after a poor returns experience. But processing a return can cost retailers around 30% of the item's original price (and that goes higher for low-cost items)

The merchandise is then purchased by resellers, including discount store owners, online sellers, mom + pop shops, apparel consignment sellers. Approximately 60% of resold merchandise is customer returns (vs. 40% excess/shelf pulls). B-Stock says it typically sees a 20%- 30% increase in inventory being sold across its B2B resale platform in Q1, and the number of truckloads of returned merchandise doubles from January to March.