Services

Will a Record National Returns Day Hurt Amazon?

Julie Clopper / Getty Images

National Returns Day is coming up on January 2, when Americans return most packages to retailers. January is always the biggest month for returns, and for this reason many retailers have their fiscal year end set at the end of this month so the returns won’t count against the next quarter.

In a note Thursday, United Parcel Service Inc. (NYSE: UPS) said that it forecasts a record National Returns Day, with 1.9 million returns expected, 26% more than last year. This will be the seventh consecutive record National Returns Day due to the growing e-commerce activity.

Amazon.com Inc. (NASDAQ: AMZN) announced earlier this month that it is offering customers at least one free return option on millions of items sold on its site, not to mention it has an expanded footprint of places customers can return these items.

The free returns are now available for electronics, household items, pet supplies, kitchen appliances and more, in addition to shoes and apparel, no matter the reason for the return. For the holidays, items shipped and fulfilled by Amazon between Nov. 1, 2019, and Dec. 31, 2019, can be returned until Jan. 31, 2020.

Returns can be processed at Amazon stores, at hub locations where Amazon Lockers are available, through United Parcel Service store locations, or at Kohl’s stores and Whole Foods locations.

However, some analysts believe that the record number of returns on the way for this holiday season could end up costing the e-commerce giant.

Managing so many returns is part of what Amazon has to be prepared for, since it doesn’t have a huge fleet of stores like Walmart and Target.

Shares of Amazon were last seen up about 1% at $1,888.07, in a 52-week range of $1,449.00 to $2,035.80. The consensus price target is $2,167.56.

UPS recently traded at $118.70 a share and has a 52-week range of $92.65 to $125.31. The consensus price target is $125.46.


The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.