A 2023 study found 64% of returned items are classified as non-sellable or require refurbishment. This contributes to an estimated $10.6 billion economy-wide cost of returns in the U.S.
Key Takeaways
- 46% of consumers report returning items because they ordered the wrong size
- 17% of retailers said they offer store credit instead of cash refunds as a way to improve resale value outcomes
- 14% of retailers reported shifting to more drop-off points to reduce carrier pickup costs in 2022
- 64% of returns are classified as 'non-sellable' or 'sellable only after refurbishing' by an average of major retailers surveyed in a 2023 reverse logistics study
- $10.6 billion U.S. economy-wide cost of returns was estimated for 2022 in an academic paper applying supply chain and waste cost modeling
- 45% reduction in return-related logistics costs was observed when using refund-without-return policies in a simulation in the same 2020 paper
- 8% of global merchandise value is estimated to be returned in retail due to consumer purchase behavior, according to a widely cited reverse logistics modeling study published in 2021
- 5.8% of total U.S. retail sales were estimated to be e-commerce returns in 2020 in an analysis of return rates applied to e-commerce sales
- 9% return rate for electronics in online channels was estimated in the same 2022 study's category breakdown
- 44% of EU consumers say they check the return policy before making an online purchase
- 61% of consumers said they prefer to initiate returns through a self-service portal (2024 survey)
- 18% of retailers use returnless refunds (refund without return) for certain order types, according to a global merchant survey published in 2023.
- 86% of retailers surveyed said they track return reasons to improve merchandising and sizing in 2023
- 38% of retailers said they are using artificial intelligence to predict return risk (2023 report)
- 25% average return rate for fashion/electronics combinations was reported in a 2021 benchmarking study of retail returns performance.
Most returns stem from sizing errors and costly resale issues, driving retailers to use smarter, self service and AI approaches.
Related reading
01 · Category
Cost Analysis9 stats
01
64% of returns are classified as 'non-sellable' or 'sellable only after refurbishing' by an average of major retailers surveyed in a 2023 reverse logistics study
02
$10.6 billion U.S. economy-wide cost of returns was estimated for 2022 in an academic paper applying supply chain and waste cost modeling
03
45% reduction in return-related logistics costs was observed when using refund-without-return policies in a simulation in the same 2020 paper
04
7% of returned items were recycled or destroyed in the same 2023 disposition study
05
$2.2 billion U.S. retailers lost to fraud associated with returns and refunds in 2022 (retail fraud estimate attributable to return-related fraud).
06
In 2019, textiles accounted for 8% of U.S. landfill waste by weight (EPA estimate, used as environmental context for returns disposition).
07
Up to 30% of merchandise in some retail categories can be returned, according to a study of apparel and consumer goods return patterns published in the International Journal of Retail & Distribution Management.
08
1.3% of U.S. retail inventory value was estimated to be tied up in returns processing and disposition (inventory holding effect) in a modeling study published in 2020.
09
17% of EU municipal waste was incinerated in 2022 (waste-to-energy share), relevant for returned merchandise disposal routes.
Interpretation
Cost Analysis Interpretation
Cost analysis shows that returned products are frequently not immediately resalable, with 64% categorized as non sellable or sellable only after refurbishing, and this costly reality is compounded by high total expenses, including a $10.6 billion economy wide cost of returns in 2022.
02 · Category
Industry Trends6 stats
01
46% of consumers report returning items because they ordered the wrong size
02
17% of retailers said they offer store credit instead of cash refunds as a way to improve resale value outcomes
03
14% of retailers reported shifting to more drop-off points to reduce carrier pickup costs in 2022
04
The EU reported 27.0% of municipal waste recycling rate in 2022 (Eurostat), providing a macro benchmark for recycling systems relevant to returns disposal.
05
In 2023, the UK retail ombudsman service reported a 17% increase in ‘returns/refunds’ related complaints year over year (Ombudsman case statistics).
06
33% of retailers report they use automated return authorization (RMA) workflows.
Interpretation
Industry Trends Interpretation
For the Industry Trends angle, returns are being shaped by customer fit issues and operational cost pressures, with 46% of consumers returning items due to ordering the wrong size and 14% of retailers adding more drop-off points in 2022 to cut carrier pickup costs.
03 · Category
Market Size6 stats
01
8% of global merchandise value is estimated to be returned in retail due to consumer purchase behavior, according to a widely cited reverse logistics modeling study published in 2021
02
5.8% of total U.S. retail sales were estimated to be e-commerce returns in 2020 in an analysis of return rates applied to e-commerce sales
03
9% return rate for electronics in online channels was estimated in the same 2022 study's category breakdown
04
$1.9 billion was raised for returns-focused technology investment globally over 2021–2023 (from venture funding tracker report)
05
$4.7 billion estimated global returns management software market in 2024 (forecast in industry report)
06
2.4% of returned goods are auctioned through online liquidation in the same disposition study scope
Interpretation
Market Size Interpretation
The Market Size data shows returns are already a large and growing financial reality, with about 8% of global retail merchandise value estimated to be returned and e-commerce returns reaching 5.8% of US retail sales in 2020, which helps explain why investment and software revenue are scaling quickly from $1.9 billion raised in 2021 to 2023 to an estimated $4.7 billion global returns management software market in 2024.
More related reading
04 · Category
User Adoption4 stats
01
44% of EU consumers say they check the return policy before making an online purchase
02
61% of consumers said they prefer to initiate returns through a self-service portal (2024 survey)
03
18% of retailers use returnless refunds (refund without return) for certain order types, according to a global merchant survey published in 2023.
04
9% of returns are processed via automated kiosks in-store, according to a 2020 omnichannel returns systems survey.
Interpretation
User Adoption Interpretation
For user adoption in the returns industry, the data shows strong momentum toward easier self-directed processes, with 61% of consumers preferring to initiate returns via a self-service portal and 44% already checking the return policy before buying online, while only 9% of returns are handled through automated in-store kiosks.
05 · Category
Operational Performance2 stats
01
86% of retailers surveyed said they track return reasons to improve merchandising and sizing in 2023
02
38% of retailers said they are using artificial intelligence to predict return risk (2023 report)
Interpretation
Operational Performance Interpretation
For operational performance, the data shows that while 86% of retailers are using return reasons to improve merchandising and sizing, only 38% are leveraging AI to predict return risk, suggesting a gap between addressing root causes and proactively managing returns.
06 · Category
Industry Overview2 stats
01
25% average return rate for fashion/electronics combinations was reported in a 2021 benchmarking study of retail returns performance.
02
14% of consumers say they read return policies before purchasing (U.S. survey).
Interpretation
Industry Overview Interpretation
In this Industry Overview, the 2021 benchmark shows that fashion and electronics can deliver a high 25% average return rate, while only 14% of consumers read return policies before buying, suggesting a gap between how often returns happen and how well shoppers understand the rules.
report visual · Comparison
Returns: Costs, Disposition, and Scale
Most returns are dispositioned as non-sellable or sellable only after refurbishing, while the broader economic cost of returns is estimated in the billions—highlighting the operational and financial impact across the reverse logistics loop.
$10.6 billion U.S. economy-wide cost of returns was estimated for 2022 in an academic paper applying supply chain and wa$10.6 billion
$2.2 billion U.S. retailers lost to fraud associated with returns and refunds in 2022 (retail fraud estimate attributabl
$2.2 billion
64% of returns are classified as 'non-sellable' or 'sellable only after refurbishing' by an average of major retailers s
64%
7% of returned items were recycled or destroyed in the same 2023 disposition study
7%
source-verifiedsupplychaindive.com · pubsonline.informs.org · aim2.com · pwc.com2023
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Emilia Santos. (2026, February 13). Returns Industry Statistics. Gitnux. https://gitnux.org/returns-industry-statistics
MLA
Emilia Santos. "Returns Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/returns-industry-statistics.
Chicago
Emilia Santos. 2026. "Returns Industry Statistics." Gitnux. https://gitnux.org/returns-industry-statistics.
Sources & references
29 datasets cited across this report · attribution is report-level
+4 additional datasets cited (not shown individually)