Consumers Expected to Return Nearly $850 Billion in Merchandise in 2025
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Consumers Expected to Return Nearly $850 Billion in Merchandise in 2025
""Returns are no longer the end point of a transaction," said Katherine Cullen, NRF vice president of industry and consumer insights. "They provide an opportunity for retailers to create a positive experience for customers and can translate to brand loyalty. Retailers are constantly evolving and working to meet customer expectations, and they recognize the importance the returns process plays." While overall return rates are somewhat steady, some areas are facing more pressure than others."
"Retailers estimate that 15.8 percent of their annual sales will be returned this year, totaling $849.9 billion, according to the 2025 Retail Returns Landscape report released today by the National Retail Federation and Happy Returns, a UPS company. That compares to last year's total, which was $890 billion, or 16.9 percent of sales. While overall return rates are somewhat steady, some areas are facing more pressure than others. According to the report, an estimated 19.3 percent of online sales will be returned in 2025."
Retailers estimate that 15.8 percent of annual sales will be returned in 2025, totaling $849.9 billion, down from $890 billion (16.9 percent) last year. Online return rates are higher, with an estimated 19.3 percent of online sales expected to be returned in 2025. Gen Z consumers (ages 19–30) averaged 7.7 online purchase returns in the last 12 months. Free returns influence 82 percent of shoppers, and 76 percent prefer return options offering an instant refund or exchange. Some 57 percent will stop shopping with a retailer after being charged for a return. A poor returns experience reduces repeat shopping for 71 percent of consumers.
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