In 2025, U.S. retailers and e-commerce companies are facing unprecedented levels of product returns. The National Retail Federation (NRF) reports that total merchandise returns reached $743 billion in 2023 (roughly 16.5% of total retail sales) and are expected to hit $890 billion in 2024, about 17% of annual sales. Handling this volume has become a strategic priority. Retailers are no longer treating returns as a costly afterthought – instead, they are implementing new policies, leveraging technology, and forging partnerships to become more efficient and extract value from returned goods. Rather than simply writing off, disposing of, or donating returned items, companies are finding innovative ways to resell, refurbish, and profit from returns. Below, we outline the top 20 trends in customer returns management in 2025 in the U.S. retail and e-commerce sectors, with data and examples illustrating how industry leaders are adapting.
1. Record-High Return Rates Forcing Strategic Shifts
The sheer volume and cost of returns have reached staggering highs, forcing retailers to rethink their approach. In 2024, about 17% of all retail purchases were returned – a 15% increase in return dollars from the prior year. E-commerce has amplified return rates (online orders can have return rates of 20–30%, vs. ~8% for store buys), as customers often buy multiple variants (sizes, colors) with the intention of sending some back. This practice, known as “bracketing,” is widespread – nearly two-thirds of consumers buy multiples expecting to return some. The rise of “wardrobing” (buying items to use once and return) is another contributor: 69% of shoppers admit to wardrobing an item, a figure that grew significantly from the previous year. These behaviors, along with easy online purchasing, have driven returns to historic levels. Retailers now view returns as a core part of the customer journey, not just a post-sale nuisance. The realization that returns can erase profit margins (the cost to process a return averages 27% of the item’s price) has galvanized firms to adopt new strategies and technologies (detailed below) to control costs and recapture as much value as possible from returned merchandise.
2. Shorter Return Windows Become the New Norm
One notable policy trend is tightening return windows. After years of increasingly lenient return periods, many retailers pulled back in 2024. According to industry analysts, many retailers shortened their return windows – especially those that had extended periods beyond 30 days. For example, some companies that once offered 60- or 90-day returns scaled back to 30 days to reduce prolonged handling of products.
Over 80% of U.S. retailers have adopted stricter return policies (like shorter windows or new fees) since 2023. The driver is cost: a faster return cycle means items can be processed and put back on sale more quickly, preserving value (especially for seasonal goods). Retailers must balance this with customer expectations – overly strict policies risk backlash and lost sales . Many are finding 30 days to be a sweet spot that aligns with consumer expectations while curbing open-ended returns. As 2025 progresses, a 30-day return window (with some exceptions for holidays) is becoming standard in U.S. retail, replacing the unusually lenient pandemic-era policies.
3. Rise of Return Shipping Fees and Restocking Charges
Retailers are increasingly adding return shipping fees or restocking fees to shift the cost burden and discourage excessive returns. In 2024, about 25% more retailers started charging for return shipping than the year before . Overall, 63% of retailers now impose a return shipping or restocking fee, and among those that still have free returns, 55% are considering introducing fees . Big names have made headlines: for instance, some apparel chains began charging a few dollars for mailed returns (while still offering free in-store returns).
The rationale is clear – processing a return can eat up ~30% of the product’s cost , so recouping a few dollars helps offset losses. There is evidence this is working: 54% of U.S. retail professionals say introducing return fees has cut down return rates. However, retailers tread carefully because fees can hurt loyalty – 58% of shoppers say restocking or shipping fees are the most frustrating part of returns, and a hefty 80% have stopped shopping somewhere due to an unwelcome return policy change. The trend, therefore, is targeted fees: many merchants charge fees only on certain channels (e.g. online mail returns) or situations, while keeping some options free. This approach nudges customers toward the free return methods (for example, returning in-store).
In 2025, the once-common blanket policy of “free returns for all” is vanishing – about two-thirds of retailers have started charging for at least one type of return service in the past year– signaling a major industry shift to shared responsibility for return costs.
4. Tiered Policies and Membership-Based Perks
To balance cost control with customer experience, many retailers are adopting tiered return policies, offering the best terms to loyal customers. Loyalty program members or premium-tier customers often enjoy more generous return benefits – such as free return shipping, longer windows, or no restocking fees – as a perk of membership. This trend is a way to reward a company’s best customers while still tightening policies for occasional shoppers or those who abuse returns. For example, some online fashion retailers now provide free returns only for members who pay an annual fee or for credit card holders, while others give extended return periods during holidays exclusively to loyalty members. The NRF notes that retailers are launching incentive-based loyalty programs with built-in return benefits (like free returns or pick-ups) as a way to gather first-party data and retain customers. By 2025, shoppers are seeing more “members get free returns” messaging. This tiered approach allows companies to segment customers – maintaining a frictionless experience for high-value shoppers (to keep them happy and spending) but disincentivizing chronic returners or one-off deal-seekers from taking advantage of overly lenient policies. It’s a nuanced strategy to cut return losses without broadly alienating customers.
5. Emphasis on Exchanges Over Refunds
Another policy and operational shift is an emphasis on exchanges instead of pure returns. Retailers are tweaking their returns process to encourage customers to swap for another item (or take store credit) rather than get a refund. The benefit is twofold: it salvages the sale (keeping the revenue in-house) and avoids adding to return inventory volumes. Many online return portals now prominently offer an “Exchange for a new size/color” or a bonus credit if you choose a store credit over a refund. For example, some apparel e-tailers will provide an extra $5 credit or a small discount on your next purchase if you opt for an exchange or merchandise credit. This trend aligns with data that retailers want to “encourage exchanges over returns” as a way to reduce waste and inventory overhead.
By 2025, more companies have streamlined instant exchanges: if a customer initiates a return for, say, a different size, the replacement ships out immediately (rather than waiting to receive the original back), speeding up the process. Automation in returns systems is making this easier – retailers use software that instantly adjusts inventory and payment when an exchange is chosen. The result is that a higher percentage of returns are being converted into kept sales or new orders. This trend reflects a broader industry mindset: it’s better to keep customers engaged and the sale in play (through an exchange) than to simply reverse the transaction.
6. “Returnless” Refunds and Keep-It Policies
A growing number of retailers are adopting “returnless refunds,” where the customer gets their money back but keeps the product (or is asked to donate or recycle it instead of sending it back). By 2025, about 33% of retailers have some form of “keep it” policy for certain cases. Amazon popularized this by occasionally telling customers to keep low-cost items rather than return them, and others have followed. Walmart’s marketplace now gives third-party sellers the option to let customers keep items and get a refund, to avoid return shipping on low-value goods. In August 2024, Amazon even enabled sellers using its fulfillment to issue refunds without requiring a return. The logic is straightforward: if the cost of shipping, processing, and restocking an item exceeds its value, it’s more economical to cut losses. This is especially true for inexpensive, bulky, or hard-to-resell items. It also boosts customer goodwill (a free item!). However, retailers must ensure this doesn’t encourage fraud or abuse. Thus, AI is often used to identify which orders qualify – for instance, first-time return of a cheap item may get a “no-return refund,” whereas higher value items or suspicious patterns won’t. The trend reflects a focus on cost-efficiency: even as retailers tighten policies generally, they’re pragmatic about avoiding negative-value returns. It’s a shift from a blanket “we want the item back” mentality to a data-driven approach: in some cases, the best reverse logistics is no logistics at all. If the return shipping costs are greater than the value of the product itself, retailers are wising up to this unnecessary expense.
7. Seamless Omnichannel Returns (Buy Online, Return In Store)
In 2025, omnichannel returns are standard practice. Retailers with both e-commerce and physical stores have heavily promoted “buy online, return in store” (BORIS) options. This trend recognizes that customers value convenience and immediacy – and returning an online purchase to a local store often means no return shipping cost, instant refund processing, and no waiting. For the retailer, it also drives foot traffic to stores (often resulting in additional purchases during the visit). 67% of shoppers prefer to return online purchases to a store when possible , and retailers are catering to that. Target, Walmart, Best Buy, and many others have refined their store return processes for online orders, often allowing QR code scan for quick drop-offs. Even primarily online players are partnering to offer physical return drop-offs (more on that next). The key trend is a unified returns experience: customers can initiate a return online and then choose from multiple channels – ship it back, drop at store, or use a partner location – whichever is easiest. This omnichannel approach requires integrating inventory and accounting systems (so a store can accept an item bought online and put it into inventory or send to the warehouse). By breaking down silos, retailers are seeing faster return turnaround and higher customer satisfaction. A side benefit: store returns often lead to “save the sale” outcomes, where store associates can offer an exchange or suggest alternatives on the spot, potentially converting what would have been a refund into an exchange or new purchase. In sum, flexible return locations are a win-win, and they’ve become an industry-wide trend in the U.S.
8. Third-Party Drop-Off Networks and Partnerships
Beyond their own stores, retailers are leveraging third-party return drop-off networks to make returns hassle-free. Partnerships like these expanded significantly heading into 2025. A prime example is Kohl’s: since 2019 Kohl’s has accepted Amazon returns in all its stores, and in 2024 Kohl’s added a new service with Narvar and Inmar to accept returns for brands like Carhartt, Hanes, and Levi’s at Kohl’s stores . This effectively turns Kohl’s into a returns hub for multiple retailers, benefiting from increased foot traffic. Similarly, FedEx and UPS have positioned their stores and access points as convenient drop-off locations for various e-commerce returns (with QR code scan and label-free drop-off, often). Happy Returns by PayPal operates a network of “Return Bar” locations (in malls, Staples stores, Ulta Beauty, etc.) where shoppers can drop off returns for numerous online retailers; those items are then bulk-shipped in reusable totes to processing centers, saving cost and waste.
The trend is so robust that 82% of consumers say they are more likely to shop online if they know convenient return drop-off options are available. Retailers are eager to tap into these networks because it means they don’t each have to build brick-and-mortar return centers everywhere – instead, they piggyback on existing infrastructure. By 2025, a typical American consumer might buy from a dozen different online brands, yet be able to return all those items at a single local hub (a UPS Store, an indie return bar, or a participating department store). These collaborations reduce friction and often lower shipping costs through consolidation. They also illustrate a new mindset: competing retailers can cooperate on returns logistics to enhance customer service and efficiency.
9. Label-Free, Box-Free Returns to Reduce Friction
The process of returns is becoming simpler and more eco-friendly through label-free and box-free initiatives. Many companies now allow customers to return items without needing to print a return label or even pack the item in a box. For instance, Amazon’s return code system (via QR code) lets customers hand an item (sometimes unboxed) to a partner store like UPS or Whole Foods; the store handles packaging in bulk. 56% of retailers offer boxless, label-free returns at either their stores or third-party locations. This trend gained momentum because it removes two major pain points: finding a box and printer. It also aligns with sustainability by cutting down on single-use cardboard and paper. Companies like Optoro and Happy Returns have championed reusable shipping totes to collect loose returned items from drop-off points. The result is a smoother experience: a customer can simply bring the product and a QR code on their phone. Major retailers (from electronics to apparel) have rolled out these options, often marketing them as “no printer or packaging needed.” Not only does this make customers happier, it also saves money – retailers can bulk-handle returns (multiple items in one carton) and reduce mailing label costs. As of 2025, this has moved from an experiment to an expected feature of returns. Long lines in stores are still a challenge (44% of shoppers cite long lines as a pain point when returning in-store, so cutting out box sealing and form-filling speeds things up. All signs indicate that label-free, package-free returns will continue to expand, improving convenience while trimming waste.
10. At-Home Pickup Services for Returns
In addition to drop-off options, some retailers have introduced or expanded at-home pickup for returns, adding another layer of convenience. During the pandemic, a few large chains tested partnerships with carriers for home pickup (for example, Walmart launched a free FedEx pick-up service for returns in 2020). Now in 2025, that concept is gaining broader traction, particularly for bulky items or premium services. In practice, a customer initiates a return online and schedules a pickup; a carrier (FedEx, UPS, or a local courier) will come to their home to retrieve the item – sometimes even packaging it if necessary. This has been popular for large products (furniture, exercise equipment) via services like UPS’s Pickup and Return or startups focused on oversized returns. Even for smaller items, companies are exploring it as a loyalty perk (e.g., “free home return pickup for Platinum members”). Optoro, a returns technology company, unveiled an at-home pickup solution in 2023, allowing retailers to offer boxless home. While not yet ubiquitous, at-home return pickup addresses the segment of customers who find any drop-off inconvenient. It can also streamline the reverse logistics for retailers by batching pickups in a neighborhood. The trend is in early stages, but it reflects the continuing arms race in convenience. As one industry CEO noted, returns have become “an integral part of the shopper experience” and meeting customers where they are (literally at their doorstep) could drive loyalty . In the coming years, we can expect more retailers to pilot home pickup returns, especially as logistics partners expand these offerings.
11. Investments in Returns Management Technology and Software
Retailers are heavily investing in returns management systems (RMS) and software tools to handle increasing returns efficiently. These tech platforms provide end-to-end visibility and automation for the reverse supply chain. For example, many companies have deployed online returns portals (often provided by SaaS firms like Narvar, Loop, or Returnly) to streamline how customers initiate returns and to guide them to cost-effective options. On the backend, advanced RMS software (from providers like Optoro, Happy Returns, and others) help retailers scan and route returned items intelligently. These systems can automatically decide whether an item should go back to stock, be sent for refurbishment, or be liquidated, maximizing value recovered. Data analytics and machine learning are integral – some platforms use AI-driven “SmartDisposition” engines to choose the highest-value path for each return. A leading solution provider, Optoro, works with major retailers (like Ikea, Best Buy, and others) to optimize returns processing using such technology.
The benefits are significant: faster processing times, higher recovery rates, and better tracking of returns metrics. Retailers can also forecast return volumes and staffing needs with more precision using these tools. In 2025, nearly every large retailer has either built or bought a specialized returns management solution. Even mid-sized e-commerce brands rely on third-party returns software integrated with their fulfillment. This trend underpins many others – for instance, without good RMS, offering personalized policies or rapid exchanges at scale would be difficult. The tech is enabling retailers to turn what used to be a messy, manual operation into a data-driven process that treats returns like a reverse form of fulfillment.
12. AI and Data Analytics for Fraud Detection and Personalization
With return rates surging, retailers are deploying AI and analytics to tackle fraud and tailor policies. Returns fraud and abuse (such as wardrobing, returning used items, or using fake receipts) costs billions each year, and it’s on the rise. Over 15% of retail returns in 2024 were deemed fraudulent in some way, according to industry studies. In response, 81% of retailers now have a returns abuse mitigation strategy in place. Artificial intelligence is key to these efforts: machine learning models analyze customer return patterns to flag “high-risk” returns or serial abusers. If someone returns worn clothing repeatedly (or claims non-receipt too often), the system may require that customer to pay return shipping, shorten their return window, or even block returns, as a deterrent. We saw a high-profile example in late 2024 when REI announced it will decline returns from a small subset of members who had extreme return rates (averaging 79%!). This targeted crackdown was made possible by data showing clear abuse. Beyond fraud prevention, analytics also enable personalized return policies – something experts say could emerge soon. That might mean offering a particularly loyal, low-return customer an extended return period as a VIP perk, while tightening conditions for a chronic returner. Retailers are cautious to base these decisions on solid data to avoid accusations of unfair treatment.
On the fraud side, AI is catching “return fraud rings” and identity-based abuse by linking patterns (e.g., the same address used by multiple accounts for excessive returns). The overall trend is precision: instead of one-size-fits-all rules, retailers in 2025 are moving toward data-driven decisions that both protect the bottom line and preserve genuine customer relationships. When 69% of shoppers are openly wardrobing and 64% of those do it monthly, such smart tools are not a luxury – they’re a necessity.
13. Faster Processing and Refurbishment to Recapture Value
As returns flood in, speed is of the essence. In 2025, companies are focused on processing returns faster and getting products back into a sellable condition (and channel) quickly to avoid losing value. Every day an item languishes in a returns pile is a day of depreciation – especially for seasonal fashion or high-tech electronics. Leading retailers have set up dedicated return centers or reverse logistics hubs to process online returns rapidly. Some use automation like sorting conveyors and barcode scanners to route items upon arrival. Others prioritize “quick inspection and refurbishing” of returns. For example, consumer electronics retailers test and refurbish returned gadgets and then resell them as “open-box” or “certified refurbished” items at a slight discount. Amazon has turned this into a science – many returned items are back on sale within days via Amazon Warehouse Deals as “used – like new,” sometimes even listed while in transit back (using tracking data to anticipate inventory). In one case, a product like a rug was on Amazon simultaneously new for $27.99 and used-like-new for $19.99 with free delivery, demonstrating how returned stock is swiftly remarketed.
Nike in recent years piloted a refurbishment program for returned sneakers – cleaning and reselling gently worn shoes at its outlets. Best Buy funnels returned electronics to its Outlet stores or e-commerce, clearly marked as open-box deals. The trend here is maximizing recovery: by refurbishing and reselling returns directly, retailers often recoup far more than if they liquidated the items in bulk. This requires operational investment (testing, cleaning, repackaging), but it pays off. Additionally, faster processing means items go back in stock sooner, reducing lost sales. Some retailers now even integrate return inventory into their fulfillment systems so that as soon as an item is scanned at a return center, it becomes available for the next order. All these efforts underscore a key point: speed and refurbishment can turn returns from pure cost into secondary sales channels.
14. Growth of Recommerce and Secondhand Sales Channels
The year 2025 is seeing a boom in recommerce – the practice of selling pre-owned or returned products – as retailers aim to squeeze value from returns. What once might have been thrown away or liquidated for pennies is now often resold directly to consumers as a “pre-loved” bargain. Resale of returned or used items is growing fast: the U.S. secondhand apparel market, for instance, is projected to reach $73 billion by 2028, growing 11% annually on average. Even more broadly, retailers in electronics, home goods, and other sectors are launching recommerce initiatives. This includes selling merchandise via their own clearance outlets, dedicated sections on their websites (e.g., “Pre-Owned” or “Clearance” tabs), or through online marketplaces. Online resale is expected to double in the next 5 years to $40 billion by 2028, indicating retailers’ increasing participation in these channels. The recommerce trend is fueled in part by shifting consumer attitudes: 77% of shoppers say they are likely to purchase secondhand or open-box goods directly from brands if offered at a discount.
Shoppers enjoy the lower prices, and retailers can recover revenue. We see examples like Lululemon’s “Like New” program (reselling used athletic wear), Patagonia’s Worn Wear, and various fashion retailers partnering to sell returned or trade-in apparel. For returned goods that are “like new,” many brands now prefer recommerce over liquidation. This trend not only generates profit but also appeals to eco-conscious values by extending product life. In sum, extracting value via resale has become mainstream – it’s no longer niche or stigma to sell returned merchandise; it’s smart business and even a selling point.
15. Partnerships with Resale Platforms and Marketplaces
Hand in hand with the recommerce boom, many retailers are outsourcing their resale efforts by partnering with established recommerce platforms. Rather than build their own infrastructure for processing and selling used goods, brands team up with companies that specialize in secondhand markets. A prominent example is ThredUp’s Resale-as-a-Service (RaaS) program: ThredUp, a major online thrift marketplace, runs white-label resale shops or take-back programs for traditional retailers. In 2024, Stitch Fix partnered with ThredUp to let Stitch Fix clients send in their used apparel in exchange for credit, with ThredUp handling the resale process. ThredUp reports over 50 brands (including J.Crew, Tommy Hilfiger, Madewell) using its RaaS platform.
Another player, Trove, powers branded resale sites for the likes of Patagonia, REI, Levi’s, and Lululemon, managing logistics and online storefronts for these “pre-owned” divisions. Outside of apparel, retailers like Ikea U.S. partnered with Optoro to optimize returns and find “the best next homes” for returned items– effectively a tech-enabled path to resale or donation. These partnerships highlight a key trend: outsourcing the complexity of reverse logistics and resale to experts who can do it at scale. Retailers benefit by recovering value without diverting focus from their core business. Even big-box retailers sell returned goods through auction marketplaces like B-Stock Solutions or Liquidity Services, which run branded online auctions for customer-returned pallets from Walmart, Target, and others. By 2025, if a retailer doesn’t have an internal recommerce program, chances are they’ve partnered with an external platform to handle it. This collaborative approach allows companies of all sizes to participate in the circular economy and profit from it, leveraging the expertise of niche recommerce services.
16. Liquidation 2.0: Online Auctions and Bulk Sales Go High-Tech
While direct resale to consumers is ideal for like-new items, many returns still end up being liquidated in bulk. What’s changed is how this liquidation happens. We’re seeing a trend of more sophisticated B2B resale marketplaces for returned and excess goods, which I’ll dub “Liquidation 2.0.” In the past, a retailer might sell truckloads of returns to a single liquidator for a flat price (pennies on the dollar). Now, platforms like B-Stock, Liquidation.com, and Warehouse Exchange enable retailers to auction off returned items in lots to a wide pool of secondary market buyers, often driving higher recovery rates through competition. For example, B-Stock runs official marketplaces for dozens of U.S. retailers (Walmart, Amazon, Home Depot, etc.), where small resellers can bid on pallets of returns manifested down to the item. This online auction approach is more transparent and can extract more value than old-school one-to-one deals. Retailers are also using data from these sales to inform return policies (seeing what products get zero bids – maybe those shouldn’t be so readily returnable) and to improve processing (e.g., grouping high-demand returned items together to sell for more). Additionally, some are employing liquidation management services that refurbish or grade products before bulk selling, to increase lot value. The trend is an increasingly liquid market for returns: technology has essentially created a thriving secondary economy where almost any returned item can find a returns buyer – if not a consumer, then a reseller or recycler. This helps retailers recoup some revenue (often more than before) and ensures fewer items end up trashed. In 2025, liquidation isn’t a dirty word but rather another strategic channel in returns management, optimized by online platforms and analytics.
17. Outsourcing Reverse Logistics Operations
Facing the complexity of handling returns in-house, many retailers are opting to outsource reverse logistics to specialists. Third-party logistics providers (3PLs) and reverse logistics companies have seen a surge in demand. According to NRF data, 40% of retailers planned to hire third-party firms to help process holiday returns in 2024. These partners can manage the entire returns flow: receiving items at return centers, inspecting and grading them, restocking or repackaging, and coordinating resale or disposal channels. Companies like Inmar (which acquired a returns processing firm), GXO Logistics (with dedicated reverse logistics services), and startups like ReturnMate or Happy Returns (now part of PayPal) provide infrastructure and expertise for efficient returns. By outsourcing, retailers convert a high-fixed-cost operation into a variable cost service and tap into optimized systems. For example, some apparel brands use 3PL warehouses that specialize in garment inspection and refurbishment, while consumer electronics makers might rely on a partner to test and refurb devices. goTRG (recently rebranded as ReturnPro) is another specialist used by Walmart, Lowe’s, Home Depot and others to refurbish and route returned merchandise.
These outsourcers often bring their own tech platforms as well, offering clients real-time data on returns. In many cases, outsourcing goes hand-in-hand with recommerce: the external provider might also list and sell the returned goods on marketplaces, sharing revenue. The case study of IKEA U.S. is illustrative – IKEA not only partnered with Optoro for tech, but Ingka (IKEA’s parent) took a stake in the company, effectively outsourcing and investing in their reverse logistics solution. By 2025, even retailers that manage forward logistics in-house are comfortable handing off reverse logistics to experts, especially given seasonal surges. This allows companies to focus on product sales while specialist partners ensure returned goods are processed thoroughly and profitably.
18. Sustainable Returns Management and Circular Economy Goals
Sustainability has become a driving trend in returns management as companies face pressure to reduce waste. Astonishingly, returns in 2023 created an estimated 8.4 billion pounds of landfill waste in the U.S.. Retailers are responding with initiatives to make returns more environmentally friendly and to incorporate returns into their circular economy efforts. 86% of retailers say they have strategies to minimize the environmental impact of returns. Some key sustainable practices include: offering boxless returns (cutting cardboard waste) as noted earlier, consolidating return shipments to reduce carbon emissions (half of retailers are doing this), and diverting like-new returns to recommerce channels (54% are doing so) rather than disposing of them. Many companies now prioritize refurbishment and donation for unsellable returns to keep them out of landfills. For instance, Patagonia’s returns often go into their Worn Wear resale program or are repaired and donated. Legislation and consumer awareness are also influencing this trend. Consumers increasingly expect brands to handle returns responsibly – a growing number say they consider a retailer’s sustainability practices in returns (for example, preferring those that refurbish or donate). In the fashion sector, startups are helping retailers recycle textiles from returns that truly can’t be resold. The circular economy ethos – extending product life and recirculating goods – is evident in how returns are handled now. Companies like IKEA explicitly tie their returns management to their 2030 circularity goals.
Additionally, retailers are being mindful of the emissions from reverse logistics transportation; some are using carbon offsets or route optimization to cut down miles. In summary, being green in returns has shifted from a niche concern to a mainstream trend in 2025, with retailers innovating to reduce the waste and carbon footprint of the returns process, all while communicating these efforts to eco-conscious customers.
19. Enhanced Customer Education and Returns Transparency
Amid all the policy changes and new programs, retailers in 2025 are investing in clear communication and customer education on returns. This trend recognizes that a well-informed customer is key to a smooth, cost-effective returns process. Companies are more transparent about their policies and the reasoning behind them. For example, some retailers now plainly state, “Free mail returns are not offered to reduce carbon emissions – please use our free drop-off options or consider exchanges.” Others include messaging at purchase like, “This item is final sale” or “Return fee of $5 for mail-in returns,” to ensure no surprises. Many are also providing guidance to reduce unnecessary returns: size guides, virtual try-on tools, detailed product info, and even AI fit assistants all serve to help customers get the right product the first time. This is indirectly a returns management strategy – fewer mistakes mean fewer returns. Virtual try-on and augmented reality have matured, especially in apparel and home decor, potentially reducing returns due to unmet expectations. (Notably, Amazon cited rising use of its AI virtual try-on as a reason it phased out its try-before-you-buy program.)
Retailers are also educating shoppers on how to return efficiently: emails and web pages now explain how to use QR codes, how to combine items in one return shipment, or how to drop off to avoid fees. Some are even framing easy returns as a service benefit but with hints towards sustainability (“Avoid printing – use our QR code for a greener return!”). By engaging customers in the process – whether through loyalty incentives for low return rates or tips on product care to avoid returns – retailers hope to create a more controlled returns environment. Transparency is critical: given that 84% of shoppers have chosen one retailer over another due to better return policies, being upfront and customer-centric in policy communication is a must in 2025.
20. Returns Metrics Enter the C-Suite and Strategy Meetings
Finally, a noteworthy trend is that returns management has become a strategic KPI and boardroom topic for retail companies. Where returns were once buried in “cost of doing business,” today metrics like return rate, recovery rate, and refund rate are closely monitored by executives. Retail CFOs and CEOs now discuss the impact of returns on margins in earnings calls and investor meetings. For example, post-holiday reports increasingly cite the volume of returns and its effect on profitability (Salesforce data showed global holiday returns jumped 28% year-over-year, potentially eroding gains).
In response, companies are setting targets to reduce return rates by improving product content or investing in sizing tools. They are also measuring the recovery rate on returned goods – i.e., what percentage of the original value do they recoup via resale or reuse – and striving to increase that via recommerce initiatives. Some retailers have created dedicated executive roles or task forces for returns and reverse logistics, reflecting its new prominence. The NRF found that retailers allocate seasonal hires specifically for returns (34% added staff in early 2024 just to handle the influx), showing operational planning around returns. Moreover, return policy changes are made with competitive analysis; as one analyst noted, “changes in the cost and volume of returns, along with how rival retailers respond,” are driving future policy shifts. The conversation has shifted: instead of just asking “How do we grow sales?”, retailers are asking “How do we optimize post-sale?”. The elevation of returns management to a strategic level in 2025 means the trends listed above are likely to continue evolving, with companies devoting resources and creativity to tame the returns challenge and turn it into an opportunity.
Conclusion
Customer returns have undeniably become a defining aspect of U.S. retail and e-commerce operations in 2025. These 20 trends illustrate a sector in transition – from an era of liberal “no-questions-asked” returns toward a more balanced approach that emphasizes efficiency, value recovery, and customer experience. Retailers are rewriting policies, investing in technology, and collaborating with partners across recommerce, logistics, and tech industries. The overarching theme is optimization: making returns not just less costly, but even profitable and loyalty-enhancing. As we move forward, companies that master returns management will not only protect their margins but also likely earn greater customer trust in a marketplace where the post-purchase experience is as important as the purchase itself. Each trend – from stricter policies to sustainable practices – contributes to a smarter returns ecosystem, one that treats returned goods as valuable assets rather than burdens.