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Returned electronic apps cost Europe $11.5B in 2007

Posted: 28 Jul 2008 ?? ?Print Version ?Bookmark and Share

Keywords:consumer electronics? returned electronics? returned goods?

Accenture Ltd estimates that about 7.34 billion euros (about $11.5 billion) was spent in Europe in 2007 to re-box, restock and resell returned electronics goods, compared to $13.8 billion spent in the United States.

According to the study, the average return rate for consumer electronics devices ranges between 2 percent and 9 percent in Europe, which compares with between 11 percent and 20 percent in the United States.

The main reason for the disparity is that in the U.S. vendors are more likely to accept a return simply because a customer has changed his or her mind. In Europe, with some exceptions, the culture is less accepting of returning goods for this reason. The main reasons for returning products in Europe included; did not meet the customers' requirements or expectations, or the customer perceived them as faulty.

However, between 62 and 85 percent of these returned goods were classified as NTF [no trouble found]. This means that the products did not appear to have a detectable fault or problem when tested by the retailer, carrier or manufacturer. Accenture did not explain why the return rate and the NTF category are both expressed as broad ranges of values. However, as a result the percentage of consumers who claim that a device is broken or damaged is much higher in Europe (59 percent) than in the United States (26 percent), said Accenture.

- Peter Clarke
EE Times Europe





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