## Convenience is Paramount for Shoppers

- **Free return shipping** is paramount, with 51.22% of shoppers ranking it as the most crucial factor in the returns process.
- Shoppers are increasingly opting to **mail back returns** (58.19% in 2024 compared to 28.6% in 2023). This shift, however, can be costly for retailers due to the lack of consolidated shipping options.
- Despite the popularity of online returns, **in-store returns still hold value for shoppers**. 47.74% of consumers consistently choose to return online purchases in-store. The primary motivator? Avoiding the need for packaging or labels (53.31%).

## The Costly Reality of Returns for Retailers

- Returns cut into retailers’ bottom line, with **a $100 item costing $30 to process**.
- In 2024 alone, returns amounted to a staggering **$743 billion**. ( [NRF](https://nrf.com/media-center/press-releases/nrf-and-appriss-retail-report-743-billion-merchandise-returned-2023))
- More than half of retailers (54%) are actively searching for **ways to maximize their financial recovery** from returned merchandise.

## Returns Fraud & Abuse: A Growing Concern

- **Wardrobing**, the practice of buying an item for a specific occasion and returning it afterward, has seen a significant uptick. 68.64% of shoppers admitted to this behavior, a stark contrast to the 30.42% in 2023.
- **Bracketing**, the practice of buying multiple sizes or colors and returning unwanted options, is also on the rise. This is particularly prevalent in apparel and accessories (56.41%).
- Retailers are responding to these behaviors by **considering bans on customers** who exhibit a history of wardrobing (38%) or bracketing (34%).

## The Returns Fee Gamble

- To offset costs and deter excessive returns, **63% of retailers have implemented return shipping or restocking fees.**
- However, **shoppers are resistant to these fees**, with 57.67% citing them as the _most frustrating aspect_ of returns.
- This resistance has led to a surge in shoppers (75.44%) embellishing or **exaggerating their reasons for returns to avoid fees**.

## Sustainable Solutions: A Win-Win for All

- 86% of retailers have implemented strategies to **minimize the environmental impact** of returns, including boxless, label-less returns and diverting gently-used goods to recommerce channels.
- 63% of retailers are either operating or considering launching **secondhand channels to resell** like-new or gently-used items.
- **Shoppers are embracing recommerce**, with 77% expressing a high likelihood of buying gently-used goods directly from brands at a discount.

## Balancing Customer Expectations with Business Needs:

- Retailers are focusing on enhancing the **customer returns experience (CRX)** to foster loyalty.
- This includes improving **online returns experiences (55.14%), in-store returns (48.86%), and omnichannel returns (41.43%)**
- **Adding convenient options** like home pick-ups and third-party drop-offs are also on the agenda