Business
Vertex Commerce Study: Returnuary’s Growing Complexity Forces Retailers to Keep Pace
Global tax technology provider finds retail consumers want free, easy product returns -- or they’ll shop elsewhere to find them KING OF PRUSSIA, Pa., March
About this update from Vertex, Inc.
[{"type":"text","content":"Global tax technology provider finds retail consumers want free, easy product returns -- or they’ll shop elsewhere to find them\nKING OF PRUSSIA, Pa., March 26, 2025 (GLOBE NEWSWIRE) -- Vertex Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), a global provider of indirect tax technology solutions, reveals that while free, easy product returns are paramount for consumer loyalty, they also create significant indirect tax complexities for retailers managing a surge of returns. Data from the post-holiday ‘Returnuary’ season – spanning late December through early February – shows that the majority (81%) of consumers would rather keep an item or seek out a nearby store to complete a return than pay for return shipping. With free returns a clear consumer expectation, 68% of shoppers indicate that their return experience directly influences their decision to engage with a brand in the future—all of which adds to the indirect tax complexities retailers must navigate. Retailers must accurately refund sales tax collected at the time of purchase, which varies by jurisdiction and sales channel. With the influx of return transactions, it can quickly become difficult to track and manage tax reporting, especially if the retailer is using disconnected systems that increase the likelihood of errors and compliance issues. With so many variables to manage within sales tax rates and regulations, retailers must rely on automated tax determination engines to successfully navigate high-pressure, high-volume seasons. These solutions are critical for ensuring accurate tax reporting and compliance during both peak shopping and return periods. \"Retailers have little time to recover between the holiday shopping surge and the post-peak return influx, making it crucial to avoid discovering the wrong tax configuration at this critical moment,\" said Sal Visca, Chief Technology Officer. “Adopting an integrated, modern, and unified tax approach ahead of these major retail moments is critical to reducing complexities, accurately tracking taxes, and meeting business and consumer needs.\" The survey finds that 40% of consumers return at least one item post-holiday, ranging from $25-$100, and 55% are ensuring the sales tax is refunded accurately. Vertex research finds a majority (77%) of holiday transactions are processed online yet about 60% of these returns are pro...