In 2023, retail returns surged to a staggering $743 billion, accounting for 14.5% of total retail sales. Notably, the return rate for online purchases was higher, at 17.6%, translating into $247 billion, compared to 10.02% for in-store purchases.
As retailers grapple with the financial burden, many have started innovating their return policies to alleviate costs and improve customer satisfaction. Among the most significant changes is the growing trend of "keep it" return policies. First introduced in June 2022, a
C NN Report stated that Target, Walmart, Gap, and Urban Outfitters are seriously weighing their options for revising their return and exchange policies.
The first major retailer in the e-commerce space, Amazon, launched a "returnless return" policy for certain cheaper, expensive-to-ship items several years ago—when the cost of receiving the return outweighs the cost of the merchandise.
Retail Returns hit 16.6%, up by 6% According to a survey by the National Retail Federation and Appriss Retail, retail returns hit an average of 16.6% in 2021—up from 10.6% the year prior—adding up to more than $761 billion of merchandise that's likely to end up back in stores, outlets, and warehouses.
They can also move them to foreign liquidators in Canada, Mexico, and Europe. Research shows that in 2023, about 13.7% of total returns were attributed to abuse and fraud, costing the industry $101 billion…
