this post was submitted on 10 Dec 2024
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Economics

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Summary

Retail returns in 2024 are projected to reach $890 billion, up from $743 billion in 2023, driven by practices like “bracketing” (ordering multiple sizes/colors) and “wardrobing” (buying for one-time use).

Rising return rates burden retailers, costing up to 30% of an item’s price to process, while contributing to landfill waste and carbon emissions.

To address the issue, 81% of retailers tightened return policies in 2023, with some implementing fees or offering “keep it” refunds.

Sustainable resale programs and customer-friendly policies are emerging as strategies to balance costs and consumer expectations.

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