As we exit the holiday shopping season, we enter the holiday returns season. During the next several years, the problem of consumer electronics product returns will continue to vex the industry.
Add today’s global economic challenges to the mix, and the profit and loss due to these returns add up to more financial difficulties. As a result, CE manufacturers and retailers would be wise to address this manageable issue now in order to achieve high performance.
Putting the returns problem in perspective, Accenture research has found that the cost to CE retailers and manufacturers of product returns in the United States in 2007 totaled about $13.8 billion. But when tested by the retailer or equipment manufacturer, only 5 percent of the products returned had a technical fault.