Net retailers gear up for holiday returns

Internet stores won't have much time to celebrate their stunning holiday sales before their next big challenge - post-Christmas returns.

Analysts say unwanted gifts being sent back could prove to be the biggest test yet for online merchants, since processing returned merchandise requires much more labor than sending it out.

A recent study found that traditional retailers that set up online stores proved to be dramatically inferior to pure Internet retailers, or e-tailers, when it came to delivering orders on time.

Yet the retailers may be best equipped to handle incoming merchandise, since many allow customers who purchase online to return items to the physical store, and vice versa.

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