In 2025, retail returns are expected to reach $849.9 billion, making up 15.8% of annual sales. Retailers are focusing on improving the returns process to enhance customer experience and brand loyalty, with free returns and instant refunds being key considerations for shoppers.

Online sales see a higher return rate of 19.3%, especially among Gen Z consumers who make an average of 7.7 returns per year. Consumer expectations around returns are increasing, with 82% valuing free returns and 76% preferring instant refund options.

A poor returns experience can deter future purchases, with 71% of consumers less likely to shop with a retailer again after a bad experience. Retailers are prioritizing increasing online sales, reducing return rates, and updating their returns process to adapt to changing consumer behaviors and preferences.

Return fraud is a concern, with 9% of returns found to be fraudulent. Consumers engage in costly return behaviors like wardrobing and bracketing, impacting retailers financially. To stay competitive, retailers must modernize their reverse logistics to enhance customer satisfaction, reduce fraud, and navigate the evolving retail landscape.

Read more at Yahoo Finance: Retail returns to hit $849.9bn in 2025