Retail Returns Projected to Hit $890 Billion in 2024, Doubling Since 2019

Rising return rates fueled by online shopping habits challenge retailers' profits and sustainability efforts.

Returns are estimated to account for 17% of retail sales in 2024, totaling $890 billion, up from $743 billion in 2023.
Consumer behaviors like 'bracketing' and 'wardrobing' are driving return rates higher, with 46% of shoppers returning goods multiple times a month.
Retailers face significant financial and environmental costs, as processing returns can cost up to 30% of an item's original price and generate landfill waste and carbon emissions.
Stricter return policies, including shorter return windows and restocking fees, are being implemented by 81% of U.S. retailers to manage rising costs.
Innovative solutions like AI-powered tools, box-free returns, and resale programs are being adopted to improve efficiency and sustainability while maintaining customer loyalty.