Returning unwanted gifts this holiday season is becoming so expensive for retailers that they just might let customers keep the products — and issue refunds anyway.

Why it matters: The cost of online returns is soaring, contributing to increased prices, product shortages and supply chain stress.

The big picture: Returning a $50 item is expected to cost an average of $33, up 59% from 2020, according to Optoro, a returns processor.

• Worker shortages and supply chain problems are taking a toll, Optoro CEO Tobin Moore tells Axios.
• About three in 10 online purchases are returned, according to CBRE Supply Chain.

The impact: Retailers are expected to pass on the cost of returns in the form of higher prices.

• “The consumer pays the price of a free return,” Columbia Business School retail studies professor Mark Cohen told Today.

Some retailers, namely Amazon, sometimes tell returners to keep it. It would cost them too much to process a return, […]