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[email protected] / May 5, 2025

To lower costs, companies are focusing on reducing return rates

Product returns are always an unhappy expense to a business. But if that involves paying for a customer to ship the product back to you, that expense is amplified. Amid rising expenses, including climbing shipping rates, many businesses are looking to combat budget constraints by tackling return rates. In this article, we take a look at this predicament, and what can be done to avoid your shipped goods being sent back to you.  

How much of an issue are return shipments?  

In 2024, the average return rate for ecommerce was 16.9% of sales – though some retailers are looking at numbers closer to 30%, depending on the product. Clothing and shoes, as well as other items requiring specific sizing, are often returned at higher rates. This number is also climbing, more than doubling from an average of 8.1% in 2019.  

That’s a pretty staggering number, when you picture between 17 and 30 of every 100 e-commerce purchases being returned. Then, imagine the shipping costs and other expenses associated with that rate. In 2024, consumer returned products cost American businesses $890 billion. On average, the cost to process a return can be anywhere from 20%–65% of the item’s original value. 

Trends show brands are changing their return policies.  

The Reverse Logistics Association’s (RLA) returns index for 2024 found that major brands are strategizing against cost increases by addressing return policies. Among a selection of American top hundred retailers: 

  • 30% charged restocking fees 
  • 75% limited what could and could not be returned 
  • Many offered better return options through subscriptions and customer loyalty programs 

Likewise, a different study by ReturnPro found that “that nearly 60% of retailers have keep-it policies for items that aren’t financially viable to ship back.” 

This isn’t only because of rising costs. The rise of fraudulent returns is also on the rise, causing a “significant issue” for as much as 93% of retailers. Protecting yourself against this expense is an important part of your logistics and fulfillment strategy.  

How do you reduce your business’ return rates?  

Charging for certain returns or having no-return policies on some items are some of the strategies businesses are using to reduce return rates. Some practices you may want to implement, if possible, include: 

  • Directing customers to post returns to your warehouse, rather than a brick-and-mortar store 
  • Directing customers to drop off returns physically, rather than shipping them back 
  • Including clear limits and cut offs in your return policy – for example, clearly stating how many days the customer has, what condition the item must be in, and what can be exchanged versus refunded 
  • Including clear and easy-to-find product information to reduce the amount of unnecessary returns 
  • Investing in smarter packaging materials to ensure the amount of returns due to damage in transit is minimal  
  • Investing in third-party software that can help identify and blacklist serial return fraud offenders 

Of course, returns will never entirely disappear. Mistakes happen, both on the seller and buyer’s ends. However, there are steps that can be taken to reduce your rates, beating the 17 in 100 statistic.  

[email protected] / May 5, 2025

To lower costs, companies are focusing on reducing return rates

Product returns are always an unhappy expense to a business. But if that involves paying for a customer to ship the product back to you, that expense is amplified. Amid rising expenses, including climbing shipping rates, many businesses are looking to combat budget constraints by tackling return rates. In this article, we take a look at this predicament, and what can be done to avoid your shipped goods being sent back to you.  

How much of an issue are return shipments?  

In 2024, the average return rate for ecommerce was 16.9% of sales – though some retailers are looking at numbers closer to 30%, depending on the product. Clothing and shoes, as well as other items requiring specific sizing, are often returned at higher rates. This number is also climbing, more than doubling from an average of 8.1% in 2019.  

That’s a pretty staggering number, when you picture between 17 and 30 of every 100 e-commerce purchases being returned. Then, imagine the shipping costs and other expenses associated with that rate. In 2024, consumer returned products cost American businesses $890 billion. On average, the cost to process a return can be anywhere from 20%–65% of the item’s original value. 

Trends show brands are changing their return policies.  

The Reverse Logistics Association’s (RLA) returns index for 2024 found that major brands are strategizing against cost increases by addressing return policies. Among a selection of American top hundred retailers: 

  • 30% charged restocking fees 
  • 75% limited what could and could not be returned 
  • Many offered better return options through subscriptions and customer loyalty programs 

Likewise, a different study by ReturnPro found that “that nearly 60% of retailers have keep-it policies for items that aren’t financially viable to ship back.” 

This isn’t only because of rising costs. The rise of fraudulent returns is also on the rise, causing a “significant issue” for as much as 93% of retailers. Protecting yourself against this expense is an important part of your logistics and fulfillment strategy.  

How do you reduce your business’ return rates?  

Charging for certain returns or having no-return policies on some items are some of the strategies businesses are using to reduce return rates. Some practices you may want to implement, if possible, include: 

  • Directing customers to post returns to your warehouse, rather than a brick-and-mortar store 
  • Directing customers to drop off returns physically, rather than shipping them back 
  • Including clear limits and cut offs in your return policy – for example, clearly stating how many days the customer has, what condition the item must be in, and what can be exchanged versus refunded 
  • Including clear and easy-to-find product information to reduce the amount of unnecessary returns 
  • Investing in smarter packaging materials to ensure the amount of returns due to damage in transit is minimal  
  • Investing in third-party software that can help identify and blacklist serial return fraud offenders 

Of course, returns will never entirely disappear. Mistakes happen, both on the seller and buyer’s ends. However, there are steps that can be taken to reduce your rates, beating the 17 in 100 statistic.  

[email protected] / April 14, 2025

Better Business Bureau of North Alabama’s recent Shred Day

I’m thrilled to share the incredible success of the Better Business Bureau of North Alabama’s recent Shred Day!♻ As a proud volunteer, I was honored to support our community in this impactful event. Together, we safely shredded thousands of pounds of sensitive documents and responsibly disposed of harmful waste, protecting identities and the environment. The turnout was amazing, and seeing everyone come together to promote safety and sustainability was truly inspiring! Huge thanks to the BBB team, fellow volunteers, and all who participated. Let’s keep making a positive difference!

[email protected] / February 20, 2025

Schooley Mitchell Launches Sustainability Initiative Press Release

Check out this press release about Schooley Mitchell’s Ecodrive initiative. I am so proud to be part of a project that makes a real impact on our planet’s sustainability!

 

Schooley Mitchell has planted more than 1,000 trees under an initiative aimed at planet sustainability that was launched recently. Their goal is to plant 100,000 trees over the next three years.

In an effort to include their employees, individual consulting offices throughout the United States and Canada, as well as their clients, they are planting trees in various parts of the world and pulling plastic from the oceans. The initiative will tie the sustainability activities into their business transactions with these various groups.

They plant a tree each time they sign a client, in the name of that client. They plant trees and pull a pound of plastic when they receive referrals, in the name of the referral source. When they hire a new employee, they plant a tree in the name of that employee. There are several similar trigger points that involve their Franchised offices across North America.

George Edon, owner of a Westerville consulting office with Schooley Mitchell is a part of the initiative and is involved by planting trees for each client obtained for their office.

Beth McMillan, President of Schooley Mitchell, stated, “One of our employees brought the idea to us and we were impressed with her passion for the project. We immediately identified the value we could deliver to so many people. We recognize we all have a responsibility to maintain our fragile world, and we just felt that taking on this project would be our way to help with the sustainability we need. We have dubbed the project, ‘Everyone Can Help’ and that truly is our hope, that people recognize the importance of an action so small as planting one tree and how that action can accumulate into something meaningful for our planet.”

She went on to say, “It has really brought us together as a company, to be pulling on the same rope. It surprised us how our people celebrate when we hit certain benchmarks. It’s rewarding to see the effect the project has had internally and externally.”

Schooley Mitchell has engaged a company called Ecodrive to manage the actual activities of tree planting and pulling plastic from the oceans. A by-product of the activities is the creation of new jobs in impoverished areas to execute the activities.

“There are so many benefits that have been delivered from such a simple idea. It’s very fulfilling”, said McMillan.

[email protected] / February 13, 2025

Press Release Feature: Schooley Mitchell Launches Sustainability Initiative

Check out this press release about Schooley Mitchell’s Ecodrive initiative. I am so proud to be part of a project that makes a real impact on our planet’s sustainability!

 

‘Schooley Mitchell has planted more than 1,000 trees under an initiative aimed at planet sustainability that was launched recently. Their goal is to plant 100,000 trees over the next three years.

In an effort to include their employees, individual consulting offices throughout the United States and Canada, as well as their clients, they are planting trees in various parts of the world and pulling plastic from the oceans. The initiative will tie the sustainability activities into their business transactions with these various groups.

They plant a tree each time they sign a client, in the name of that client. They plant trees and pull a pound of plastic when they receive referrals, in the name of the referral source. When they hire a new employee, they plant a tree in the name of that employee. There are several similar trigger points that involve their Franchised offices across North America.

Jason Fish, owner of a Huntsville consulting office with Schooley Mitchell is a part of the initiative and is involved by planting trees for each client obtained for their office.

Beth McMillan, President of Schooley Mitchell, stated, “One of our employees brought the idea to us and we were impressed with her passion for the project. We immediately identified the value we could deliver to so many people. We recognize we all have a responsibility to maintain our fragile world, and we just felt that taking on this project would be our way to help with the sustainability we need. We have dubbed the project, ‘Everyone Can Help’ and that truly is our hope, that people recognize the importance of an action so small as planting one tree and how that action can accumulate into something meaningful for our planet.”

She went on to say, “It has really brought us together as a company, to be pulling on the same rope. It surprised us how our people celebrate when we hit certain benchmarks. It’s rewarding to see the effect the project has had internally and externally.”

Schooley Mitchell has engaged a company called Ecodrive to manage the actual activities of tree planting and pulling plastic from the oceans. A by-product of the activities is the creation of new jobs in impoverished areas to execute the activities.

“There are so many benefits that have been delivered from such a simple idea. It’s very fulfilling”, said McMillan.’

[email protected] / February 12, 2025

Schooley Mitchell Spotlight for Harrison Tenney & Associates Inc. Certified Public Accountants

Early in his accounting career, Skip Tenney was working for Peat Marwick International, one of the largest accounting firms in the world at the time.  During his time at the firm, he gained experience in many different parts of the business, from auditing to consulting, tax to business valuation.  As his family grew, Skip wanted less late hours and less time on the road, hence the shifting to different departments within the company.  “That was a great job,” Skip said.  “They treated me like royalty.  Anything I asked for, I got, including changing assignments.”  But this varied background at a major accounting firm also gave Skip a very full understanding of accounting on many levels.  When Pete Marwick and KMG were planning to merge into KPMG, Skip learned that his direct manager was starting to look for other jobs (unsure of what the merger may mean for him).  As a result, Skip decided he would open his own practice, and Harrison Tenney & Associates was born.

Oddly enough, Skip’s manager ended up staying with KPMG for several years, and when Skip’s former clients would call into their office asking for Skip, the manager would let them know that he had started his own firm.  This greatly helped Skip build his client base early on.  And not surprisingly, as the practice continued to grow, acquisition through referrals consistently remained their best form of growth.

Skip realizes that his practice (and the way he works with clients) may not work for everyone.  The first step he takes when speaking to a prospective client is to have them come to his office for a free consultation.  During this meeting, Skip goes through the prospective client’s tax documents, gives recommendations of what he would do (that the previous CPA may have done differently), and determines the type of work required to service this client.  This meeting also helps him estimate the fee structure.  But before everything is contractually agreed to, Skip offers the prospective client a trial month to get a better idea of the full scope of the work, create a more finalized quote, and determine if this will be a good fit for both sides.

When looking at the services provided by Harrison Tenney & Associates, clients will often find out how knowledgeable Skip is in the field of accounting very quickly.  His extensive background equipped him with the skills to handle virtually any situation a client may face.  This includes working with clients in different countries, learning/understanding the different tax rules/codes that apply in those countries, and knowing how to then file it all accurately in the United States.  Regardless of the client’s particular situation, Skip prides himself on finding the best solution for them, which sometimes involves negotiating with the IRS.

The interesting thing about the field of accounting is that most clients do not understand all of the services a good accountant can provide.  For example, when a client’s family member passes away, Harrison Tenney & Associates can provide a final income tax return.  What most people don’t realize is that the deceased family member’s estate needs to continue to have income tax returns filed for it until the estate is distributed.  Skip can help a client in this situation determine the best way to proceed to limit their tax liability.  He also has relationships with professionals in other fields that he can direct his clients to if they need help with something he can’t handle.

As evidenced by the strong referral base of clients, as much as Skip loves accounting, what he really enjoys the most is interacting with his clients and knowing that he’s helping them.  Many people at this stage of their careers are contemplating retirement, but Skip has relationships with his clients that go beyond just merchant-to-customer.  “I like our clients and I feel like I have to continue on for them so they don’t have to find someone else.”  This is how you grow a client base worldwide.