What: A new study finds that outdated return policies and return shipping fees are deterring shoppers, eroding trust, and reducing conversion rates in North American retail.

Why it is important: The impact of returns on shopper behavior underscores the need for retailers to rethink policies and invest in data-driven, customer-centric solutions, reflecting trends documented in the past year.

A recent study by Cashew reveals that outdated return policies and the imposition of return shipping fees are significantly undermining consumer confidence and suppressing demand in North American retail. Nearly half of surveyed shoppers hesitate to purchase if free return shipping is not offered, regardless of product or price, directly impacting conversion rates and long-term loyalty. The research highlights that sizing issues remain the primary reason for returns in apparel, with 74% of returns attributed to fit, while older shoppers—particularly those over 45—account for the majority of returns. Notably, 35% of consumers add items to their cart with the expectation of returning some, and more than half will not complete a purchase without detailed sizing visuals or guidance. The findings suggest that retailers must view returns management as a growth strategy, investing in sizing intelligence, frictionless processes, and multi-generational design to unlock trust, conversion, and loyalty in an increasingly competitive market.

IADS Notes: Return policies have become a critical front-line factor influencing conversion, trust, and long-term loyalty in retail. Journal du Net (January 2026) reports that the escalation of returns fraud has led retailers to phase out universal free returns in favor of differentiated, data-driven solutions, including AI-powered risk management and personalized return experiences. Forbes (July 2025) highlights the industry’s shift toward “returnless returns,” with research showing that allowing customers to keep unwanted items can significantly boost loyalty and repurchase intentions, transforming returns from a cost center into a strategic advantage. By October 2025, Retail Week notes that three-quarters of major UK fashion retailers were charging for returns, reflecting a broader move to balance profitability, customer satisfaction, and sustainability. Forbes (September 2025) observes that the surge in fit-related returns, driven by changing consumer demand and the “Ozempic effect,” is prompting US retailers to recalibrate inventory and invest in real-time planning. The Financial Times (January 2026) underscores the growing influence of older shoppers, who combine digital fluency with brand loyalty and a preference for clear, flexible return policies.

A ‘Returns Revolt’ is underway