Regretting That PS3 Purchase? Accenture Report Reveals Rise in Non-defective Gadget Returns
A new Accenture (NYSE:ACN) research report has disclosed that non-defective electronic gadget returns are on the rise by U.S. consumers, creating highs costs for manufacturers and retailers.
Accenture estimated a cost of $16.7 billion for U.S. consumer electronics manufacturers, carriers and retailers to handle the returned merchandise. These costs go to the repairing, reboxing, restocking and reselling of products and represents 5-6% of manufacturer’s revenues and for retailers, 2-3% of sales, according to Accenture.
In addition, the report noted that the consumer electronics device return rates sits between 11-20%, but it is also on the rise. About 58% of gadget retailers are seeing higher return rates than previous years with 68%–considered a majority–labeled as “no trouble found.” This means that the consumer thought there was a defect, but after the company tested the product against industry specifications, a problem was not detected.
Another reason for returns was buyer’s remorse at 27%.
The report stated, “The bottom line is that 95% of returns are ultimately unconnected to product defects!”
To conduct the report, Accenture updated product return numbers from 2007 figures with Consumer Electronics Association sales data. It also conducted an online survey of about 100 manufacturers, carriers and retailers, according to the Chicago Tribune. The survey included products as mobile phones, computers, DVRs, high-def TVs, gaming consoles and computer software.