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NRF | HAPPY RETURNS
2025 Retail Returns Landscape
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. 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.