Many Unhappy Returns? Online Sales May Have a Hidden Downside

Retailers expect returns, and that expectation rises during the holidays. That's logical -- the greater the share of purchases that are made as gifts for other people, the greater the share that are likely to be not quite right in some way for the recipient.

So returns and exchanges have long been a fixture of this season, but they may be increasing due to the large and rising share of items being purchased online.

The unavoidable lack of in-person interaction when it comes to digital purchases -- you can't touch them, test them, or try them on -- seems like it would naturally lead to more of them wending their way back to their sellers. That could be bad news for retailers -- or it could be an opportunity.

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Source Fool.com