What: Customers are increasingly preferring in-person returns at a store over mail-in ones.

Why it is important: Mail-in returns are expensive and dent profitability, and should the market be shifting thanks to new customer preferences this could be a way for department stores to reduce the hit on margin. The NRF expects that this could help reduce the return costs by 40%.

Forbes reports that shoppers are increasingly making buying decisions according to return policies, especially when it comes to online buying.

In-person, box-free returns are now the favourite method according to customers, while mail-in returns are ranked in the 4th position. This is due to a fatigue related to the need of printing a label, finding packaging material and going to a shipping station. As a consequence, 54% prefer simply going to the store over 21% favouring in-mail returns.

Returns represented 16,6% of total retail sales in the US in 2021, with online returns at 21%.

Hassle-free returns are more important than ever