What: Nearly 39% of consumers return online purchases monthly, costing retailers $25−$30 per return.

Why it is important: The trend highlights the need for innovative solutions in e-commerce logistics and customer service.

A Narvar survey of over 1,900 consumers reveals that nearly 39% return online purchases at least monthly, costing retailers USD 25 − 30 per return. The study also found a significant increase in fake returns, with 52% of respondents admitting to this practice at least once, up from 36% last year. These trends coincide with the rise of online shopping, as 87% of shoppers make at least half their purchases online.

Returns have become a critical issue for retailers, with total merchandise returns amounting to USD 743 billion last year. However, 60% of consumers are open to exchanges or store credit instead of full refunds if the process is convenient, presenting an opportunity for retailers to mitigate costs and build customer loyalty. Consumer preferences vary by demographics, with 62% of men preferring immediate store credit and half of women willing to wait for credit card refunds. Return policies significantly influence shopping decisions, with 82% of consumers choosing retailers based on these policies. As U.S. online retail sales are predicted to grow 9.8% to USD 1.2 trillion this year, retailers like Amazon are adapting their return processes to balance customer satisfaction and operational efficiency.

In the US, nearly 40% of consumers return an online purchase ‘at least’ once a month