Returns Cost Arkansas Retailers Millions

Walmart Returns

Returns are part of the retail business as consumers often change their minds after making a purchase. In 2018, the value of returned merchandise in the U.S. totaled nearly $369 billion. That did not include retailer overhead for restocking or shipping back to the vendor in some cases. A new report by Appriss Retail analyzed the impacts of returns on retailers and state economies.

The report found Arkansas retailers processed $3.73 billion in returns last year. That equates to a little more than $200 million lost in sales tax revenue when consumers request refunds for the unwanted purchases.

The report also looked at fraud-related returns and calculated the Natural State lost more $12 million in sales tax revenue from the fraudulent returns. The report found for every $100 in returns, retailers lost $5 to return fraud throughout the year. At the holidays, that amount was estimated to increase to $6.50.      MORE

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