United Parcel Service (UPS) expects to handle four million returns the first full week of January, up 15% from two years ago. As online sales continue to grow, returns “represent a larger percentage of overall sales.” As WSJ reports, more than 20% of returns happen during the holiday season – representing $60 billion in merchandise. While returns may be a boon for delivery companies, they are costly for retailers as returns, replacements and damaged goods represent about 10% of revenue. With return rates as high as 50%, one manager explains “‘returns' is just a dirty business… Retailers are really losing their shirts on it.”