The frequency of returns by American consumers has increased, and the total amount of returns will reach 890 billion US dollars in 24 years

It is learned that a report recently released by the National Retail Federation (NRF) and Happy Returns shows that the total amount of e-commerce product returns in the United States is expected to reach 890 billion US dollars in 2024, accounting for about 16.9% of total retail sales. This figure is an increase from the return rate of 15% (743 billion US dollars) in 2023.

The return rate has shown a significant upward trend over the past five years, from 8.1% in 2019 to 10.6% during the 2020 pandemic, and then to 16.5% in 2021. During holidays such as Black Friday, the return rate reached 20.4%. This change is closely related to the surge in online shopping, especially the change in shopping habits after the pandemic.

According to the report, about two-thirds of consumers today buy multiple sizes or colors of goods in order to find the right style and return unsatisfactory goods. This behavior is particularly common among millennials and Generation Z. In addition, 69% of consumers said they would return goods after purchasing them for a specific event, an increase of 39% from 2023. In addition, 46% of consumers said they return goods multiple times a month, an increase of 29% from last year.

The study also showed that consumers are increasingly demanding return policies, with 76% of shoppers believing free returns are a key factor in their purchasing decisions, and 67% saying a bad return experience would affect their second purchase decision. In addition, 77% of consumers said they would check the return policy before making a purchase.

The cost of return processing is also a big problem for sellers. As the return rate increases, each return costs an average of 30% of the original price of the product, which puts more pressure on sellers. To meet this challenge, sellers are strengthening inventory management and quickly replenishing returned goods back to inventory to avoid losses. At the same time, sellers are trying to find a balance between the high customer satisfaction brought by free returns and the cost of processing returns. According to reports, in 2023, 81% of US brands introduced stricter return policies, including shortening the return period and charging return or restocking fees.

In order to improve efficiency and meet consumer expectations, sellers are also constantly optimizing the return process. Many sellers provide unpackaged and unlabeled return options and provide instant refunds, which not only improves customer experience but also reduces operating costs. At the same time, some e-commerce platforms such as Amazon and Target have launched refund-only return options to better meet consumer needs. At the same time, Walmart's Restored and Amazon's Renewed programs reduce the waste of returned goods by buying back products and reselling them.

Author✎ Summer/
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