Stephanie Chevalier
E-commerce research and editorial expert
E-commerce returns in the United States - statistics & facts
Online shopping has transformed the way people acquire goods and services. Still, the convenience of buying from the comfort of our homes comes with a catch: returns. While returning items purchased online may be a hassle, it is an essential part of the e-commerce process, impacting shoppers and retailers alike. In 2022, the cost of retail returns in the United States reached a staggering 817 billion U.S. dollars, with a quarter of it stemming from online retailing. That year, out of the 1.3 trillion U.S. dollars in online sales registered in the country, approximately 16.5 percent ended up as returns.
Once returns are received, their destination depends on the item's condition and the retailer's policy. Although 44 percent of U.S. consumers believed returned merchandise would be resold, over a third were unsure what would happen to them. Unfortunately, the volume of returns ending up in landfills in the U.S. nearly doubled from 2019 to 2022, amounting to 4.3 billion tons.
As the environmental impact of returns grows, younger generations are increasingly concerned about the issue. In addition to providing a seamless return experience, shoppers also wish for retailers to focus on more sustainable return and shipping practices. By prioritizing sustainability, online businesses can build customer loyalty and help reduce the carbon footprint of e-commerce returns.
Buy, try, return: the rise of bracketing
Bracketing is a growing trend in which consumers buy several items with the intention of returning some of them. In 2022, more than six out of ten online shoppers resorted to bracketing, with adults under 30 years old being particularly inclined to this practice. According to a survey, up to 20 percent of U.S. consumers in this age group reported always engaging in bracketing when shopping online. Uncertainty about size, model, or even color explains why fashion items such as clothing, shoes, and accessories top the list of most commonly returned online purchases. When asked why they had returned items, three-quarters of respondents cited fit issues, while over half said the product did not match the description, and a third did not like what they received. Therefore, it is not surprising that when bracketing, consumers seek to be safe rather than sorry.Returns, a necessary evil
Reducing returns and lost sales from returns has become one of the main business priorities among retailers. However, online merchants are also focusing on providing a satisfactory returns experience to attract and retain customers. In 2022, almost eight in ten retailers in the United States had already incorporated or planned to incorporate returns processing technology. Additionally, most added online returns portals and new returns drop-off points to their returns strategy agenda. While free returns and company return policies are commonly considered crucial aspects of shopping online, a negative experience during the return process can discourage customers from making future purchases. In fact, nearly 80 percent of U.S. online consumers indicated that a poor return experience would make them less likely to shop from the same retailer again. Some of the factors contributing to a difficult return process include the need to repackage items, the absence of return tracking, and long wait times for refunds.No return goes unpunished
Shopping with the assurance that one can return unwanted products has become common practice. However, this habit has a significant environmental impact. In the United States, emissions from shipping returns amounted to approximately 24 million CO2 metric tons in 2022, 50 percent more than the levels observed during the e-commerce pandemic boom of 2020.Once returns are received, their destination depends on the item's condition and the retailer's policy. Although 44 percent of U.S. consumers believed returned merchandise would be resold, over a third were unsure what would happen to them. Unfortunately, the volume of returns ending up in landfills in the U.S. nearly doubled from 2019 to 2022, amounting to 4.3 billion tons.
As the environmental impact of returns grows, younger generations are increasingly concerned about the issue. In addition to providing a seamless return experience, shoppers also wish for retailers to focus on more sustainable return and shipping practices. By prioritizing sustainability, online businesses can build customer loyalty and help reduce the carbon footprint of e-commerce returns.
