Will a Record National Returns Day Hurt Amazon?

By Chris Lange Updated Jan 30, 11:46AM EST · Published Dec 27, 10:40AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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 | UPS Price Prediction) 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.

[nativounit]

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.

[recirclink id=600688]
[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.