Survey Reveals High Expectations and Expenses

  • 84% of consumers are satisfied with their most frequented retailers’ return policies
  • Returns cost U.S. retailers an estimated $890 billion in 2024, accounting for 17% of total sales
  • Two-thirds of consumers returned clothing or footwear in the past year
  • 3 in 5 consumers return items due to poor fit
  • Better product descriptions and size recommendations can reduce returns
  • Returns are a crucial factor for retailers and brands to control

Returns have become a significant aspect of e-commerce, with 60% of consumers making one in the past year. Rithum’s survey shows that shoppers prioritize free returns as a standard offering. Retailers face high costs due to return policies, including shipping fees and reduced margins. The fashion industry experiences the highest return rates, followed by electronics, home goods, toys, and hobby items. Improved product descriptions and size recommendations can help reduce returns and boost customer satisfaction.

Factuality Level: 8
Factuality Justification: The article provides accurate information about return rates, consumer preferences, and the impact of returns on retailers. It cites statistics from reliable sources and offers insights into how retailers can address the issue.
Noise Level: 6
Noise Justification: The article provides relevant information about e-commerce returns and their impact on retailers and consumers. However, it contains some repetitive statements and could benefit from more analysis or discussion of potential solutions beyond addressing root causes.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the financial impact of returns on retailers and brands, mentioning that U.S. retailers paid an estimated $890 billion for returns in 2024, accounting for 17% of total sales. It also highlights the costs associated with returns such as shipping fees, manual labor, and thinning margins. The article does not specifically impact financial markets or individual companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. The topic focuses on e-commerce returns and their impact on retailers and consumers.

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