UPS predicts massive post-holiday 'National Returns Day'

It is National Returns Day.

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United Parcel Service expects to ship 1.9 million gifts and other items back to U.S. retailers on Thursday, according to the New York Times.

Jan. 2 is the busiest day for holiday returns in the United States.

It is a day that puts a squeeze on retailer profits as many advertise free shipping on orders and returns.

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A 26 percent year-over-year volume surge is anticipated.

In a 2018 report from Appriss Retail and National Retail Federation, about 10 percent of goods sold in the United States go back to retailers every year, resulting in roughly $369 billion in lost sales.

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Apparel is the biggest culprit due to inconsistent sizing.

According to UPS, while 30 percent of shoppers return items to stores, more than twice that many opt for shipping.

UPS said it handled more than 1 million returns each day in December, but declined to give an annual total.

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The ability for a retailer to be flexible about returns will go a long way with customers, 73 percent of shoppers surveyed said the overall returns experience impacts their likelihood to purchase from a retailer again.