Free returns are often a deal breaker for consumers
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter.
E-commerce retailers with generous return policies have greater brand loyalty than those with stingier ones, according to a Rithum survey of 6,000 consumers released last month.
Nearly 9 in 10 consumers expect free returns as standard, while 2 in 5 consider a retailer's return policy before making a purchase.
About half of consumers — 47% — have stopped shopping at a retailer due to an unfavorable return policy.
Returns are essential to e-commerce, with 3 in 5 consumers making one in the past 12 months.
'Returns are no longer a post-purchase afterthought — they're shaping buying decisions,' Rithum CEO Lou Keyes said in a prepared statement. 'For brands and retailers, the return experience has become a critical business lever, not just a logistical function.'
In fact, 84% of consumers are satisfied with the return policies of their most frequented retailers.
Rithum concludes that 'this high satisfaction likely reflects consumer self-selection — shoppers are avoiding anywhere with less favorable return policies.'
Shoppers in the United States and Canada have higher expectations than those in other markets, with about 2 in 5 consumers saying that a 30-day return window is reasonable.
Returns, however, cost retailers a lot of money. In 2024, U.S. retailers paid an estimated $890 billion for returns, accounting for 17% of total sales, according to the National Retail Federation.
'These returns create an expense iceberg for retailers and brands — where the lost sale is just the tip, and hidden costs like shipping fees, manual labor, and thinning margins erode profits beneath the surface,' according to Rithum.
The fashion industry experiences more returns than any other, with over two-thirds of consumers returning clothing or footwear in the past year. More than one-third of consumers admit to buying multiple items to try on and return. That figure rises to 50% for shoppers under age 35.
With deliberate overbuying so widespread, nearly 9 in 10 merchants try to avoid returns through return policy changes like restocking fees, shortened return windows and store-credit-only refunds, according to a 2024 Blue Yonder survey.
However, apparel shoppers are buying more than they need because they don't trust product descriptions. Poor fit is the main reason that 3 in 5 consumers return items, according to Rithum. Another one-third of consumers have returned items because they didn't match their online description or images.
Better size and fit recommendations, as well as more detailed product descriptions, could help reduce returns, according to Rithum.
'As consumers look to get more for their money, they want to trust that they'll get what they paid for,' Rithum CMO Suzin Wold said in a news release. 'When product content and return policies don't match the actual experience, it breaks that trust. Today's shoppers expect accurate, detailed listings — and anything less risks both returns and lost loyalty.'
Electronics, home goods, toys, books and hobby items also have high return rates.
'These purchases tend to be more discretionary, gift or taste-driven, where returns stem less from defects and more from preferences,' according to Rithum.
However, despite the high cost and complexity associated with returns, 'return policies are one of the few factors that retailers and brands can fully control,' according to Rithum.
'Returns aren't going away — but they don't have to be a revenue drain. By proactively addressing the root causes of returns and rethinking your policies with new consumer expectations in mind, you can better protect margins, boost customer satisfaction, and even stand out in a crowded market,' the survey says.
Recommended Reading
Foot Locker simplifies loyalty program, adds cash back
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
38 minutes ago
- Bloomberg
Trump's Twists and Turns Over Iran Leave Oil Traders Hanging
The oil market is wrestling with Donald Trump's next act in the conflict between Iran and Israel, with the US president's every utterance over the fighting seemingly capable of spiking or crashing prices. In a wild week, Brent futures have surged 11% from before Israel attacked its nemesis, but with sharp moves up and down from one day to the next.
Yahoo
39 minutes ago
- Yahoo
Is Net Worth More Important Than A High Salary? Some Say Yes, Others Argue A High Salary With Low Net Worth Is 'Much Easier To Fix'
When a Reddit user recently posted a rant claiming that net worth is more important than salary, it sparked a heated debate. The post criticized people who flaunt six-figure incomes but have little to show for it. The author questioned the value of a high paycheck if it all disappears to debt and lifestyle costs. 'Who cares what you make if you are still broke,' they wrote. The poster argued that plenty of six-figure earners live paycheck to paycheck and flex their income despite being buried in debt. 'I would rather make 50k a year and have 250k NW, than 150k a year and be in debt,' they wrote, adding, 'Having high NW displays financial discipline and competence.' Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can Some people agreed, pointing out that income is only one part of the story. 'I worked with a guy who made over 100k,' one commenter wrote. 'Refused to save anything, not even 401(k). He bought anything and everything he wanted. He's still doing it.' Others pushed back, saying a high salary gives you more options and flexibility. 'Give me the high salary and low net worth. Much easier to fix,' one person said. Another argued, 'That 150k [salary] can erase debt and build a 250k NW a hell of a lot faster than the 50k / 250k one can increase.' A more detailed reply laid out how someone earning $150,000 could contribute aggressively to retirement, get employer matches, and outpace someone with a smaller income within a few years. 'You could waste ALL of your 126.5K minus taxes and end up with a quarter mill in 5 years,' the commenter explained. Trending: Maximize saving for your retirement and cut down on taxes: . Despite disagreements, one consistent theme emerged: discipline matters more than raw numbers. 'If you have an uncontrollable spending problem, it doesn't matter how much you make,' a user wrote. 'You can make 1 million a year and if you still spend 1.2 million you're an idiot.' Another summed it up this way: 'Net worth isn't always a sign of discipline but your post is well taken. If I made a million dollars per year for one year it doesn't make you rich.' Several pointed out that net worth often includes illiquid assets like homes, which can inflate the numbers without improving someone's day-to-day finances. 'You can't access your 401(k) without paying a penalty... unless your net worth is mostly comprised of cash in a mattress, a low salary and high net worth won't increase your buying power,' one user the end, some people argued that the best position is to have both: a strong income and disciplined saving habits. Consistent contributions to your retirement—while increasing the percentage over time— and positive cash flow are even more important, as those will build your net worth over time. A high income can fuel savings and investment, while net worth provides security when income slows down. Building both and understanding how they support each other is what creates lasting financial stability. Read Next: Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Is Net Worth More Important Than A High Salary? Some Say Yes, Others Argue A High Salary With Low Net Worth Is 'Much Easier To Fix' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
39 minutes ago
- Yahoo
ThinkCareBelieve: Week 22 of America's Rise to Greatness under President Trump's Leadership
Washington, DC, June 21, 2025 (GLOBE NEWSWIRE) -- Link to ThinkCareBelieve's Article: has published an article about Week 22 of America's rise to greatness. This week entailed outstanding leadership by a steady hand through choppy waters and ThinkCareBelieve's article shows how the President kept moving forward at a strong, surefooted pace. ThinkCareBelieve's article has important progress made at the G7 and the signing of major trade agreements as tensions between Iran and Israel took place. The message from Press Secretary Karoline Leavitt this week was "Trust in President Trump." Great nations are made because of great leaders and this week was proof of it. America has just had the highest wage increase in 60 years and the article has it. Real blue collar wages are up nearly 2%! America's low inflation and rising wages is a sure sign of success. Two new 88 foot high flag poles were installed this week, a magnificent addition to the White House grounds. The article has the latest on the status of student visas from Secretary of State Marco Rubio and President Trump's approval numbers keep going up! The article covers the Genius Act being passed by the Senate and the announcement that 70,000 people have signed up for President Trump's Gold Card Visa. The article has an abundance of reasons the One Big Beautiful Bill will benefit Americans. The OBBB will drive growth and supercharge the American economy. The article even has a tax-free tips and overtime calculator to see the average savings in your state: The article has statements by Dr. OZ the Administrator of the Center for Medicaid and Medicare Services on just how the One Big Beatiful Bill will help the most vulnerable of us who will suffer if the OBBB is not passed. The article also covers the great strides made by Secretary Kennedy convincing major food manufacturers to remove artificial food dyes and chemicals from their foods. The article also has an announcement by U.S. Attoney Jeanine Pirro of the U.S. Department of Justice crackdown on Crypto Currency Confidence Scams with confiscation and seizure of stolen money being returned back to the victims. Numerous investigations commenced this week and ThinkCareBelieve's article has the surge in attacks on ICE as they tried to do their jobs arresting criminal illegal aliens, catching child predators and dismantling trafficking networks. President Trump is the Man in the Arena and we are witessing history seeing how this man leads us through the muck and the mire to peace and prosperity in America's Golden Age. is an outlook. ThinkCareBelieve's mission for Peace advocacy facilitates positive outcomes and expanded possibilities. To achieve Peace, we will find the commonalities between diverse groups and bring the focus on common needs, working together toward shared goals. Activism is an important aspect of ThinkCareBelieve, because public participation and awareness to issues needing exposure to light leads to justice. Improved transparency in government can lead to changes in policy and procedure resulting in more fluid communication between the public and the government that serves them. America needs hope right now, and Americans need to be more involved in their government. ### CONTACT: CONTACT: Joanne COMPANY: ThinkCareBelieve EMAIL: joanne@ WEB: in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
