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This is followed by the spring slump, when membership cancellations and returned products cause a significant drop in profits.
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These costs include receiving, assessing, repairing, reboxing, restocking and reselling returned products.
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Philips cites studies saying that some 30% of home networking products are returned because people cannot get them to work, and almost half the people thinking about buying a digital camera delay their purchase because they fear they might find it too complicated.
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The company said the products should be returned, unopened, for a full refund.
BBC: Recalled products
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Occasionally, companies send me demo products (to be returned or given away as a promotion) and I disclose those arrangements as well.
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