The UPS is expected to break its weekly return record this week, with approximately 1.75 million returns entering the system each day, bringing the weekly total to around 8.75 million.
The new return record is approximately 23 percent higher than the largest week for returns during the 2019-2020 holiday season. The largest returns per day happened on January 2, 2020, where 1.9 million returns occurred. It is likely that purchasing habits during the pandemic are contributing to this year's increase in returns.
"The leveling out of returns across many days can largely be attributed to shifting purchasing habits accelerated by a global pandemic," said the vice president of global retail and e-commerce strategy, Nick Basford.
Package Return Records
The UPS Broke Its Weekly Return Record During the Holiday Season
Trend Themes
1. E-commerce Returns Record - Increased e-commerce returns are breaking weekly records, creating opportunities for innovation in reverse logistics and customer service.
2. Pandemic-induced Purchasing Habits - The pandemic has shifted purchasing habits, leading to a new normal of returns, creating opportunities for innovative solutions to adjust to the new trends.
3. Reverse Logistics Technology - Solutions for streamlining and optimizing reverse logistics will be in high demand as e-commerce returns continue to increase at unprecedented rates.
Industry Implications
1. E-commerce - With the rise in e-commerce sales, companies will need to invest in innovative ways to manage the surge in returns and customer service.
2. Logistics - The logistics industry will need to find ways to optimize reverse logistics in response to the surge in e-commerce returns.
3. Technology - As e-commerce returns continue to increase, companies will invest in technologies that optimize the reverse logistics process, leading to potential innovations in areas such as artificial intelligence and automation.