Imagine your store's dressing room was suddenly four times bigger: that's the reality online, where nearly 1 in 4 items bought is sent back, costing retailers billions while exposing the critical fit between customer expectations and digital reality.
Key Takeaways
- In 2023, the average ecommerce return rate in the US reached 24.4%, up from 20.8% in 2021
- Globally, ecommerce fashion returns averaged 24.4% in 2022, compared to 8.9% for physical retail
- Amazon's return rate for apparel was approximately 40% in 2022, significantly higher than electronics at 5%
- In 2022, 30% of online apparel purchases were returned primarily due to fit issues
- 24% of ecommerce returns in fashion were cited as 'didn't like it' in 2023 US survey
- Wrong size accounted for 35% of all online clothing returns globally in 2022
- US ecommerce returns cost retailers $743 billion in 2023
- Apparel returns alone cost US ecommerce $33 billion annually in 2022
- Average cost per ecommerce return to process is $17 in 2023
- 67% of consumers expect free returns in ecommerce 2023 survey
- 54% of shoppers abandon carts if no free returns offered 2022
- Millennials return 24% of purchases vs 10% Boomers 2023 data
- AI-powered size recommendation reduces returns by 40% 2023 pilots
- Free returns increased adoption by 90% among top retailers 2022
- Resale platforms for returns grew 25% YoY 2023
Rising ecommerce return rates, especially in fashion, are costing retailers billions each year.
Consumer Behavior
- 67% of consumers expect free returns in ecommerce 2023 survey
- 54% of shoppers abandon carts if no free returns offered 2022
- Millennials return 24% of purchases vs 10% Boomers 2023 data
- 82% prefer brands with easy return policies 2022 global survey
- Mobile shoppers return 15% more than desktop 2023
- 41% use buy-online-return-in-store (BORIS) option 2022
- Women return clothing 20% more frequently than men 2023
- 70% check return policy before purchase 2022 US
- Gen Z expects 30-day returns standard, 65% won't buy otherwise 2023
- 55% keep items if returns too hassle 2022 survey
- Impulse buyers return 28% of purchases 2023 data
- 76% influenced by free shipping/returns in decision 2022
- International shoppers return 18% higher rate 2023
- 62% use returns to try multiple sizes/colors 2022 fashion
- Loyal customers return 12% less than new ones 2023
- 49% delay returns due to environmental guilt 2022 survey
- Parents return kids' items 25% more post-purchase 2023
- 71% prefer self-service return portals 2022
- Frequent online shoppers (weekly) return 22% avg 2023
- 58% influenced by social proof on return ease 2022
- Elderly consumers return 8% rate, prefer in-store 2023
- Subscription box returns average 15% cancellation returns 2022
- 64% use returns for 'wardrobing' occasionally 2023 admit
- Eco-conscious buyers return 10% less 2022 data
- Holiday shoppers return 30% gifts received 2023
Consumer Behavior Interpretation
Today's shopper demands a frictionless exit strategy: free returns are now the velvet rope of e-commerce, where loyalty is bought with leniency and carts are abandoned at the first sign of a hassle, proving that the easiest way to a customer's heart is a clear path back to your warehouse.
Financial Impact
- US ecommerce returns cost retailers $743 billion in 2023
- Apparel returns alone cost US ecommerce $33 billion annually in 2022
- Average cost per ecommerce return to process is $17 in 2023
- Reverse logistics costs represent 60% of total return expenses for retailers 2022
- Lost inventory value from returns hit $101 billion in US fashion 2023
- Ecommerce returns reduce profit margins by 20-30% for high-return categories 2022
- UK online returns cost £7 billion in unpaid return shipping 2023
- Fraudulent returns cost ecommerce $48 billion globally in 2022
- Processing one return costs retailers 15-20% of product value 2023
- Furniture returns cost US industry $10 billion yearly 2022
- Beauty returns lead to $5.2 billion losses in North America 2023
- Electronics returns cost $8.7 billion in restocking fees 2022
- Holiday returns cost retailers $90 billion post-2022 season
- Average resale value after return is 65% of original price 2023
- Labor costs for returns processing average $10 per item 2022
- Shipping returns unpaid by customers costs $20 billion yearly US 2023
- Wardrobing fraud costs fashion $2.9 billion annually 2022
- Liquidation of returned goods loses 35% value on average 2023
- Small businesses lose 18% revenue to returns costs 2022
- EU ecommerce returns cost €20 billion in logistics 2023
- Toys returns post-holiday cost $4 billion US 2022
- Pet products returns financial hit $1.5 billion 2023
- Jewelry returns cost luxury brands $3 billion yearly 2022
- Home improvement returns $6.8 billion losses 2023
Financial Impact Interpretation
Every year, the retail industry hemorrhages hundreds of billions of dollars just to graciously accept our remorseful packages back, a Sisyphean cycle where the "free return" is anything but.
Industry Trends
- AI-powered size recommendation reduces returns by 40% 2023 pilots
- Free returns increased adoption by 90% among top retailers 2022
- Resale platforms for returns grew 25% YoY 2023
- Blockchain for return tracking piloted by 15% large retailers 2023
- Sustainability labels cut fashion returns 18% 2022 studies
- AR try-on tech adopted by 40% fashion sites, reduces returns 35% 2023
- Rental models for apparel down 22% returns volume 2022
- Automated return kiosks in 30% stores cut costs 25% 2023
- Zero-return policies tested by luxury brands, uptake 12% 2022
- Predictive analytics forecast returns accuracy 85% for top firms 2023
- Cross-border returns solutions grew 50% market 2022
- Green returns initiatives by 65% retailers 2023 survey
- BOPIS reduces returns 50% vs pure online 2022 data
- RFID tagging cuts fraud returns 30% 2023 implementations
- Virtual fitting rooms via AI lower returns 28% fashion 2022
- Returns as a service (RaaS) market to $25B by 2027
- 55% retailers plan charge for returns 2024 amid costs
- Omnichannel returns strategy boosts retention 20% 2023
- Lab-grown materials reduce defect returns 15% 2022
- Digital receipts track returns better, adopted 70% 2023
- Micro-fulfillment centers speed returns 40% faster 2022
- Personalization via data cuts returns 22% 2023 cases
- Circular economy platforms resell 40% returns 2022 growth
- Voice commerce early adopters see 10% less returns 2023
- Social commerce returns 18% higher, but improving 2022
- Metaverse shopping pilots reduce returns 45% via virtual try-on 2023
Industry Trends Interpretation
Today's savvy retailers are fighting the returns tsunami with everything from AI fitting rooms to blockchain tracking, discovering that the best way to handle a returned item is to prevent it from ever coming back in the first place.
Reasons for Returns
- In 2022, 30% of online apparel purchases were returned primarily due to fit issues
- 24% of ecommerce returns in fashion were cited as 'didn't like it' in 2023 US survey
- Wrong size accounted for 35% of all online clothing returns globally in 2022
- Color not matching expectations caused 18% of beauty product returns in 2023
- Defective or damaged items represented 15% of ecommerce returns in US 2022
- Ordered wrong item led to 12% of returns across categories in 2023
- Poor quality materials caused 22% of home goods returns online 2022
- Sizing charts inaccurate for 28% of footwear returns in EU 2023
- Late delivery prompted 8% of returns in 2022 surveys
- Product not as described was reason for 20% of electronics returns 2023
- Allergies or sensitivities caused 10% of beauty and personal care returns 2022
- Fit issues dominated 40% of athletic wear returns globally 2023
- Changed mind accounted for 25% of toy returns post-holiday 2022
- Assembly difficulties led to 16% furniture returns online 2023
- Scent mismatch for 14% of fragrance ecommerce returns 2022
- Texture issues caused 11% of skincare returns in 2023
- Weight or size wrong for 19% pet product returns 2022
- Duplicate orders resulted in 9% returns US ecommerce 2023
- Gift returns due to unwanted item 21% holiday 2022
- Fabric feel disappointing for 23% apparel returns 2023
- Package damaged in transit 13% all categories 2022
- Style not flattering 27% fashion returns EU 2023
- Functionality failure 17% electronics 2022
- Baby product safety concerns 15% returns 2023
- Garden tool malfunction 12% outdoor returns 2022
- Jewelry sizing wrong 26% luxury returns 2023
Reasons for Returns Interpretation
The data reveals a sobering truth: e-commerce returns are largely a crisis of expectations, where digital windows shopping leads to tangible disappointment in fit, feel, and function.
Return Rates
- In 2023, the average ecommerce return rate in the US reached 24.4%, up from 20.8% in 2021
- Globally, ecommerce fashion returns averaged 24.4% in 2022, compared to 8.9% for physical retail
- Amazon's return rate for apparel was approximately 40% in 2022, significantly higher than electronics at 5%
- UK online returns rate hit 27.4% during 2022 holiday season
- In 2023, beauty product returns in ecommerce averaged 12%, driven by color mismatches
- Ecommerce returns in Europe averaged 25% in 2022, with Germany at 30%
- US apparel ecommerce return rate was 30% in 2023
- Footwear returns in online sales reached 28% globally in 2022
- Home goods ecommerce returns averaged 15% in 2023 US market
- Electronics online returns were 9% in 2022, lower than fashion
- During Black Friday 2022, US ecommerce returns peaked at 26.6%
- Australian online retail returns averaged 22% in 2023
- Luxury fashion ecommerce returns hit 35% in 2022 due to fit issues
- Grocery ecommerce returns were under 2% in 2023
- Toys and games online returns averaged 18% post-holidays 2022
- Furniture ecommerce returns reached 25% in US 2023 due to size mismatches
- Sportswear online returns were 32% in 2022 EU market
- Jewelry ecommerce returns averaged 10% in 2023
- Books and media returns were 5% in online sales 2022
- Accessories like bags averaged 20% returns in fashion ecommerce 2023
- Health and beauty ecommerce returns hit 14% in 2022 UK
- Automotive parts online returns were 12% in US 2023
- Pet supplies ecommerce returns averaged 11% in 2022
- Office supplies online returns were 7% globally 2023
- Baby products returns reached 22% in ecommerce 2022
- Garden and outdoor goods averaged 19% returns online US 2023
- Handbags in luxury ecommerce had 28% return rate 2022
- Watches online returns were 8% in 2023 market
- Sunglasses ecommerce returns averaged 25% due to fit 2022
Return Rates Interpretation
Online shopping has mastered the art of making purchases effortless, but these return rates—especially in fashion, where nearly one in three orders comes back—suggest we're still trying to solve the much harder problem of getting the right item to the right person the first time.
Sources & References
- Reference 1STATISTAstatista.comVisit source
- Reference 2BUSINESSOFFASHIONbusinessoffashion.comVisit source
- Reference 3REUTERSreuters.comVisit source
- Reference 4RETAIL-WEEKretail-week.comVisit source
- Reference 5SHOPIFYshopify.comVisit source
- Reference 6ECOMMERCE-NATIONecommerce-nation.comVisit source
- Reference 7EMARKETERemarketer.comVisit source
- Reference 8NRFnrf.comVisit source
- Reference 9DIGITALCOMMERCE360digitalcommerce360.comVisit source
- Reference 10ADOBEadobe.comVisit source
- Reference 11NATIONALRETAILnationalretail.org.auVisit source
- Reference 12MCKINSEYmckinsey.comVisit source
- Reference 13FURNITURETODAYfurnituretoday.comVisit source
- Reference 14EUROCOMMERCEeurocommerce.euVisit source
- Reference 15JEWELERSjewelers.orgVisit source
- Reference 16PUBLISHERSWEEKLYpublishersweekly.comVisit source
- Reference 17FASHIONUNITEDfashionunited.comVisit source
- Reference 18WHICHwhich.co.ukVisit source
- Reference 19AUTONEWSautonews.comVisit source
- Reference 20PETBUSINESSpetbusiness.comVisit source
- Reference 21STAPLESADVANTAGEstaplesadvantage.comVisit source
- Reference 22MOTHERMAGmothermag.comVisit source
- Reference 23LAWNANDLANDSCAPElawnandlandscape.comVisit source
- Reference 24BAINbain.comVisit source
- Reference 25WATCHPROwatchpro.comVisit source
- Reference 26VISIONMONDAYvisionmonday.comVisit source
- Reference 27MINTELmintel.comVisit source
- Reference 28FEDEXfedex.comVisit source
- Reference 29HOUZZhouzz.comVisit source
- Reference 30EUROPEANCOMMISSIONeuropeancommission.euVisit source
- Reference 31ZENDESKzendesk.comVisit source
- Reference 32CNETcnet.comVisit source
- Reference 33COSMETICSBUSINESScosmeticsbusiness.comVisit source
- Reference 34NIKEnike.comVisit source
- Reference 35TOYASSOCIATIONtoyassociation.orgVisit source
- Reference 36IKEAikea.comVisit source
- Reference 37FRAGRANCEFOUNDATIONfragrancefoundation.orgVisit source
- Reference 38BEAUTYINDEPENDENTbeautyindependent.comVisit source
- Reference 39PETPRODUCTNEWSpetproductnews.comVisit source
- Reference 40UPSups.comVisit source
- Reference 41TEXTILEWORLDtextileworld.comVisit source
- Reference 42DHLdhl.comVisit source
- Reference 43ASOS PLCasos plc.comVisit source
- Reference 44BESTBUYbestbuy.comVisit source
- Reference 45PARENTSparents.comVisit source
- Reference 46HOME-DEPOThome-depot.comVisit source
- Reference 47TIFFANYtiffany.comVisit source
- Reference 48HBRhbr.orgVisit source
- Reference 49DELOITTEdeloitte.comVisit source
- Reference 50LIQUIDITY-SERVICESliquidity-services.comVisit source
- Reference 51BIGCOMMERCEbigcommerce.comVisit source
- Reference 52ECec.europa.euVisit source
- Reference 53PETFOODINDUSTRYpetfoodindustry.comVisit source
- Reference 54LOWESlowes.comVisit source
- Reference 55YOUGOVyougov.comVisit source
- Reference 56VOGUEBUSINESSvoguebusiness.comVisit source
- Reference 57KLAVIYOklaviyo.comVisit source
- Reference 58NIELSENnielsen.comVisit source
- Reference 59AARPaarp.orgVisit source
- Reference 60SUBTAsubta.orgVisit source
- Reference 61GREENBIZgreenbiz.comVisit source
- Reference 62THREDUPthredup.comVisit source
- Reference 63IBMibm.comVisit source
- Reference 64ELLENMACARTHURFOUNDATIONellenmacarthurfoundation.comVisit source
- Reference 65PERFECTCORPperfectcorp.comVisit source
- Reference 66RENTTHERUNWAYrenttherunway.comVisit source
- Reference 67PWCpwc.comVisit source
- Reference 68AVERYDENNISONaverydennison.comVisit source
- Reference 69ZEBRAzebra.comVisit source
- Reference 70GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 71RETAILDIVEretaildive.comVisit source
- Reference 72EVERLEDGEReverledger.comVisit source
- Reference 73SALESFORCEsalesforce.comVisit source
- Reference 74CIRCULARISEcircularise.comVisit source
- Reference 75VOICEBOTvoicebot.aiVisit source
- Reference 76ROBLOXroblox.comVisit source