DOW JONES NEWSWIRES Customers returning electronic devices will cost U.S. electronics retailers and manufacturers about $17 billion this year, an increase of about 21% from 2007, consulting company Accenture PLC (ACN) said in a new report. These costs include receiving, assessing, repairing, reboxing, restocking and reselling returned products. "These high consumer electronics return rates are unsustainable in a sector with brutal competition and thin margins," said Mitch Cline, managing director of Accenture's electronics & high-tech group. "Most companies invest considerable sums to manage returns, but need to refocus their strategies on proactively preventing returns through customer education and aftermarket support." Accenture said it found that product return rates increased over the past three to five years for 57% of retailers and 43% of manufacturers surveyed. In contrast, 13% of retailers and 12% of manufacturers surveyed said return rates went down. Of the returns, 5% were found to be actual product defects, 27% were characterized as buyer's remorse and 68% were tested and found to have no problems. Accenture's research was based on a survey of executives from communications carriers and consumer electronics retailers and manufacturers. -By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108; ben.rubin@dowjones.com
