Why the wealthiest shoppers keep sending things back

"Higher-income households had the highest retail refunds (5.3% of their 2025 purchases), while lower-income households had the smallest (3.7%). The report said that while shoppers nationwide love the flexibility of returning what they've bought- 76% consider "free returns" an important factor in where they shop-the practice is wreaking havoc on retailers, who lost $890 billion from returns alone last year, according to the National Retail Federation."

"One reason "may be that higher-income households are less cash-constrained and so are more likely to buy items speculatively when they are searching for a particular purchase, in the knowledge they can return it later if they decide it's not right for them," according to the BoA report. Returns to department stores were particularly high, with wealthier shoppers returning a whopping 20% of purchases, compared with lower-income shoppers who only returned 11%."

"Boomers ( the wealthiest generation), Gen Xers, and millennials all currently make returns at around 16%, whereas those born before 1945, called traditionalists or the Silent Generation, are at 15% and Gen Zers at 10%. Gen Z returns goods at lower rates than other generations, except when it comes to electronics. And Gen Zers typically have a lower net worth than previous generations do at the same age, due to inflation, student-loan debt, and the fact that they are buying homes later in l"

Higher-income households returned 5.3% of their 2025 purchases, while lower-income households returned 3.7%. Seventy-six percent of shoppers consider "free returns" an important shopping factor, and returns cost retailers $890 billion last year. Return rates among large retailers have more than doubled since 2019. Return costs add pressure amid inflation, higher prices, changing habits, tariffs, and economic uncertainty, which are suppressing consumer spending. Wealthier shoppers are less cash-constrained and more likely to buy speculatively with the expectation of returning items. Department store returns reached 20% for wealthier shoppers versus 11% for lower-income shoppers. Boomers, Gen X, and millennials return around 16%, while Gen Z returns about 10% and shows different category behavior.

Read at Fast Company