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NRF | HAPPY RETURNS
2024 Consumer Returns in the Retail Industry
At the end of every year, we survey thousands of shoppers and hundreds of retailers to understand the shifting dynamics of returns.
The result? A comprehensive look at the trends shaping shopper expectations and how retailers are adapting — or struggling to keep up. Whether it’s convenience, rising fraud, or generational behaviors, returns have become a make-or-break part of the customer experience.
Here's what we learned:
01
Shoppers demand speed and ease.
84% of shoppers say box-free, label-free returns with instant refunds are their favorite way to return. Fast, easy, and hassle-free returns remain the #1 priority.
When asked to rank their favorite return locations, The UPS Store appeared as the top choice for 59% of shoppers, followed by the U.S. Postal Service (49%) and the retailer’s store (42%).
What this means for retailers: Offering box-free returns and multiple drop-off options can drive loyalty and repeat sales.
02
Convenience makes or breaks a sale.
Shoppers now check return policies before they buy. 46% abandon purchases because retailers didn't offer convenient return methods. Mail returns aren’t cutting it.
What this means for retailers: A seamless returns process is a competitive advantage. If it’s not easy to return, shoppers will walk away.
03
Gen Z & Millennials are driving change.
Bracketing—the practice of ordering multiple sizes or colors with the intent to return—is surging as younger generations gain buying power.
51% of Gen Z bracket their purchases, compared to just 24% of Baby Boomers.
What this means for retailers: Gen Z and millennials expect flexibility and free returns, but they’re also reshaping your costs. A clear plan for managing bracketing is essential.
04
Fraud is a growing concern.
93% of retailers cite fraud as a top issue, yet many shoppers blur the lines. In the last year:
47% of shoppers returned items with the tags removed
32% returned a worn item
25% returned a different item than indicated or intended
What this means for retailers: A robust fraud prevention strategy is more important than ever, especially as consumers grow savvier.
05
Cost-cutting and efficiency are survival tools.
Returns are straining retailer operations:
60% of retailers have had to choose between shipping new orders or processing returns
68% say upgrading their returns capabilities in the next 6 months is a top priority
What this means for retailers: Optimized reverse logistics can be the key to managing costs and maintaining customer satisfaction—without sacrificing growth.