Returns Management Statistics 2024 - Everything You Need to Know

Are you looking to add Returns Management to your arsenal of tools? Maybe for your business or personal use only, whatever it is – it’s always a good idea to know more about the most important Returns Management statistics of 2024.

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Best Returns Management Statistics

Best Returns Management Statistics

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Returns Management Market Statistics

The market size of the Product Returns Management Services industry is expected to increase 5.1% in 2024. ^[0]
The market size of the Product Returns Management Services industry in the US has grown 4.9% per year on average between 2017 and 2024. ^[0]

Returns Management Latest Statistics

5.1% Product Returns Management Services in the US Market Size Growth in 2024 4.9% Product Returns Management Services in the US Annualized Market Size Growth 2017–2024. ^[0]
An increase in ecommerce sales boosts demand for industry services because consumers return up to 30.0% of e commerce sales in certain categories. ^[0]
All told, American consumers returned a whopping $428 billion of goods in 2020, a return rate of 10.6 percent, with e commerce returns accounting for nearly a quarter of returns volume. ^[1]
conducted just prior to the COVID19 pandemic noted a 25 percent return rate for apparel on e commerce channels, compared to 20 percent overall. ^[1]
And with the sector’s ecommerce growing about 35 percent in 2020, its returns are at an all. ^[1]
And with an estimated 10 percent of all returns ending in a landfill, the environmental impact is not trivial. ^[1]
As a result, 86 percent of survey respondents agree that a lenient returns policy is critical to increasing revenue and share of wallet, and 75 percent agree returns are a necessary evil. ^[1]
Perhaps because of this cross functional effort, 58 percent of survey respondents say that lack of accountability for returns management within any single department or business unit is a pain point within the organization. ^[1]
Two thirds of survey respondents say their company has a strategy to improve the economics of returns, while 83 percent of them strongly agree that returns are a concern for profitability. ^[1]
Up to 70 percent of survey respondents now offer free return shipping on some or all items. ^[1]
Advanced shopping tools Based on the experience of our survey respondents, 70 percent of returns were caused by poor fit or style, suggesting that shopping tools are a key lever for preventing returns and improving consumer experience. ^[1]
Only 6 percent of retailers we surveyed give merchandising any responsibility for returns, and product development teams are absent almost entirely. ^[1]
However, most retailers are not yet actively guiding consumers to their preferred channel, other than the about 30 percent of survey respondents who charge return shipping fees. ^[1]
33 percent of repeat consumers would choose to abandon a retailer if they had a “difficult” returns experience. ^[1]
According to a 2020 report on returns from Narvar, 3. ^[1]
Seventysix percent of first time consumers who had an “easy” or “very easy” returns experience would shop at a retailer again; however, 33 percent of repeat consumers would choose to abandon a retailer if they had a “difficult” returns experience. ^[1]
Collectively, consumers returned products worth $428 billion in 2020—just over 10% of total retail sales. ^[2]
In fact, a quarter of all consumers return between 5% and 15% of the items they buy online. ^[2]
That’s shortly followed by apparel retailers (12.2%). ^[2]
Data suggests that 20% of onlinebought products are returned, compared to just 9% of items bought in a brickand. ^[2]
Consumer preference based returns tend to drive around 72% of all returns in fashion product categories. ^[2]
Nonpreference based reasons and “not as described” account for 10% in total. ^[2]
22% Changed my mind 12% Style 8% Not as described 5% Defective 5% Other or not specified 18%. ^[2]
Shipping courier DHL saw a 20% decrease in average weekly return volumes during the start of the pandemic. ^[2]
Some 18% offer exchanges; the same amount give a gift card to redeem on a future purchase. ^[2]
Some 62% of customers expect an exchange or refund within 30 days of purchase. ^[2]
Get the returns experience right and 92% of customers will return to buy again. ^[2]
Research shows that 62% of shoppers are more likely to shop online if they can return their purchase to a physical store. ^[2]
Across all Shopify businesses, 65% of refunds are performed manually; the remaining 35% via apps. ^[2]
Each of those things prevent the reason behind 22% of returns the fact the item looks different in person than it did online. ^[2]
With this technology, buyers can now use their device to place the crate right next to their dogs to confirm sizing, decreasing our return rate by 5%. ^[2]
—Macey Benton, VP of Marketing, Gunner Kennels The retailers’ investment in 3D and AR technology paid dividends Return rate reduced by 5% Cart conversion rate increased by 3% Order conversion rate increased by 40%. ^[2]
The truth is, some 30% of items are returned because they arrived faulty or damaged. ^[2]
Another 71% would be willing to pay more to return with a sustainable option. ^[2]
It’s estimated that return shipping in the US alone creates 15 million tonnes of carbon emissions per year. ^[2]
With 10.6% of all online purchases eventually diverting back toward the retailer’s warehouse, ecommerce returns aren’t something you can ignore. ^[2]
Statistics about Product Returns Management 20% =. ^[3]
The minimum amount of e commerce products returned 8.9% =. ^[3]
The average cost of processing returns from the cost of goods sold 49% of retailers offer free product return shipping. ^[3]
92% of consumers will buy something again if returns are easy. ^[3]
79% of consumers want free product return shipping. ^[3]
50% of online shoppers are dissatisfied with past returns processes. ^[3]
Did you know at least 30% of all products ordered online are returned as compared to 8.89% in brickand. ^[4]
92% of consumers surveyed said that they will buy again if product return process is easy whereas 79% of consumers want free return shipping. ^[4]
Around 49% of retailers offer free return shipping now whereas 67% of shoppers check the returns page before making a purchase. ^[4]
62% of shoppers are more likely to shop online if they can return an item in. ^[4]
Whereas, 58% of consumers want a hasslefree “no questions asked” return policy, and 47% want an easyto. ^[4]
27% of consumers would purchase an item online that costs more than $1,000 if offered free return shipping as compared to 10% who will purchase it otherwise. ^[4]
In 2021, online purchase returns spaned in almost all major product categories, ranging from 8% to 88%. ^[5]
Clothing retailers experience eCommerce returns the most, as this is the sector that 88% of consumers had decided to return their order.1]. ^[5]
The payment method that most customers who return their online order use are credit cards (22.78%). ^[5]
UPS anticipated that there was a recordsetting total of 8.75 million return packages during the week of Jan 4, 2021, 23% increase compared to the 2019. ^[5]
CBRE projected that eCommerce returns in the US could total $66.7 billion in the 2021 holiday season, which is a 45.6% increase rate compared to 2016.4]. ^[5]
Only 17% of retailers have applied AI technology to support their supply chain management and returns.5]. ^[5]
Share of eCommerce companies planning on offering free returns in North America and Europe in 2021 One of the decisive reasons encouraging people to shop online is the easy returning policy (33%). ^[5]
80% of online customers believe a bad return experience can break their loyalty.8] 57% of shoppers prefer an online shopping experience that provides simple and reliable returns.9]. ^[5]
30% of online customers think fast refunds will contribute to a pleasant returns experience.10]. ^[5]
55% of respondents made online purchases knowing they were likely to return some of the items purchased.11]. ^[5]
63% of customers expect the return window up to 30 days, while 23% expect the traditional minimum of 14 days.12]. ^[5]
49% of online consumers will check the return policy before deciding to order something.14]. ^[5]
76% of first time customers who enjoy an easy return experience say they would shop with that retailer again.15]. ^[5]
57% of gen Z consumers believed they will return some of their gifts in the 2021 holiday season.16]. ^[5]
Despite being offered free shipping, 44% of consumers still prefer to return in. ^[5]
Before Covid 19, around 84% of consumers said they rarely or occasionally returned online purchases. ^[5]
This situation has changed significantly since 2020, as around a quarter of consumers returned between 5% and 15% of what they bought online.18]. ^[5]
The return rates in the US could increase to as high as 30% amid the Covid. ^[5]
23% of product returns happen due to inaccurate depictions of the product.23]. ^[5]
This is a 29% increase from last year. ^[6]
92%of shoppers say they will buy again if the returns process was easy. ^[6]
79%of consumers expect free return shipping, but only49%of online retailers offer it. ^[6]
More than60%of consumers review a return policy before making a purchase Based on the numbers above it. ^[6]
79% of customers won’t purchase from an online store that charges return shipping fees. ^[6]
72% of online customers expect a refund credit within 5 days of returning merchandise. ^[6]
Even in an otherwise smooth return process, waiting too long to credit a customer can hurt brand loyalty 88% of customers would limit or stop shopping with a merchant that took too long to credit the refund. ^[6]
58% of customers say they want a hasslefree return policy, and 47% want an easyto. ^[6]
Penske found that businesses that invest in improving reverse logistics processes see a 12% increase in customer satisfaction and a 4% decrease in cost. ^[6]
But with the average retailer spending 8.1% of total sales on reverse logistics, it can pay to reduce overall return volume as well. ^[6]
That’s why 88% of shoppers characterize detailed product content as being extremely important to their purchasing decision. ^[6]
But only 5% of shoppers say they return online orders more than 30 days after purchase. ^[6]
While brickand mortar return rates average between 8 and 10%, ecommerce return rates come in at more than double that at 20%. ^[6]
During the holiday shopping season, the ecommerce return rate can jump as high as 30% during the holiday shopping season. ^[6]
About 15 to 40 percent of online purchases are returned. ^[6]
During the pandemic, Levi’s was able to turn 30% percentage of potential product. ^[7]
— Levi’s The National Retail Federation estimated that online merchandise returns more than doubled last year, with returns totaling $106 million for every $1 billion in retail sales. ^[7]
Consumers returned an estimated $428 billion in merchandise to retailers overall in 2020, according to the National Retail Federation. ^[7]
Logistics services provider Easyship estimated that the cost of returns eats up about 14% of a product’s retail price, on average. ^[7]
The brand has cut its return rate to 9% on a three month moving average since it began using ReturnLogic, compared with return rates of 25% to 30% that are common in many types of women’s apparel, according to ReturnLogic. ^[7]
In addition, it was able to reduce so called “bracketing” or “fitting room” purchases—when consumers buy multiple sizes of an item and return the ones that don’t fit—by 15%. ^[7]
For example, Levi’s added online product exchanges that assisted customers in finding the right size even when stores were closed, turning 30% of potential returns into product exchanges instead. ^[7]
Furthermore, Web Retailer reports that, if your eCommerce business has at least 40% repeat customers, you are likely to have 50% higher sales than online retailers for whom repeat purchasers make up only 10% of their sales. ^[8]
The National Retail Federation found that 18.1% of items purchased online in 2020 were returned. ^[8]
But your eCommerce returns rate can go up by as much as 50% above normal after the holidays. ^[8]
In 2020, the NRF estimated the cost of holiday returns alone at $101 billion. ^[8]
A recent study of consumer behavior in the UK found that eCommerce returns were as high as 23% for women’s clothing but just 4% for beauty products, with an industry average of 15%. ^[8]
Still, it can be painful to give refunds for 15% of the orders you ship and to pay for return shipping on top of it. ^[8]
A UPS survey found that 44% of U.S. consumers have returned an item they bought online. ^[8]
Shopify reports that eCommerce returns are predicted to cost online retailers a collective $550 billion. ^[8]
If you want to understand what that means for your bottom line, you can take an average eCommerce return rate of 15% to 20% and multiply that by your expected sales volume in the coming year. ^[8]
If it’s below 15%, give yourself a pat on the back; you’re doing better than most. ^[8]
A 2017 study by Narvar found that 40% of online shoppers had ordered extra items that they planned to return. ^[8]
The continued 10 to 30% annual population increase of wolves and their spread to every corner of the State, support this long overdue decision. ^[9]
“Within Oregon, the gray wolf found its ‘Oregon Trail’ and has since flourished in its recovery by establishing presence to every corner of our state upon both our private and public lands with a continued estimated population increase of 10 to 30% per year. ^[9]
but, according to these data, we can say that at least 30% of all products ordered online are returned to the sender, compared to 8.89% of the items purchased in a physical store. ^[10]
However, we should not forget that these researches from 2017 and 2018 show that 41% of online buyers decide to purchase different versions of the same product on an ecommerce, with the intention of returning unwanted ones. ^[10]
Although report that ecommerce returns have a negative impact on their business, it is now recommended to offer 57% of merchants. ^[10]
If the data behaves in a normal curve, then 68% of the data points will fall within one standard deviation of the average, or mean, data point. ^[11]
Historical returns for Apple’s stock were 12.49% for 2016, 48.45% for 2017, 5.39% for 2018, 88.98% for 2019 and, as of September, 60.91% for 2020. ^[11]
The average return over the five years was thus 41.09%.1. ^[11]
The value of each year’s return less the mean were then 28.6%, 7.36% 46.48%, 47.89%, and 19.82%, respectively. ^[11]
All those values are then squared to yield 8.2%, 0.54%, 21.6%, 22.93%, and 3.93%. ^[11]
The square root of the variance is taken to obtain the standard deviation of 0.3781, or 37.81%. ^[11]

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Reference

ibisworld – https://www.ibisworld.com/industry-statistics/market-size/product-returns-management-services-united-states/.
mckinsey – https://www.mckinsey.com/industries/retail/our-insights/returning-to-order-improving-returns-management-for-apparel-companies.
shopify – https://www.shopify.com/enterprise/ecommerce-returns.
thereturnslab – https://www.thereturnslab.com/statistics.
invespcro – https://www.invespcro.com/blog/ecommerce-product-return-rate-statistics/.
simicart – https://www.simicart.com/blog/ecommerce-returns/.
shipbob – https://www.shipbob.com/blog/ecommerce-returns/.
uschamber – https://www.uschamber.com/co/good-company/launch-pad/brands-use-data-to-recover-costs-from-returns.
redstagfulfillment – https://redstagfulfillment.com/best-practices-e-commerce-returns/.
doi – https://www.doi.gov/pressreleases/trump-administration-returns-management-and-protection-gray-wolves-states-and-tribes.
shippypro – https://www.blog.shippypro.com/20-ecommerce-returns-statistics-to-guide-your-reverse-logistics/.
investopedia – https://www.investopedia.com/terms/s/standarddeviation.asp.

How Useful is Returns Management

One of the key benefits of returns management is its impact on customer satisfaction. No matter how carefully a product is designed or manufactured, there will always be instances where customers need to return items due to defects, damage, or simply a change of mind. How a company handles these returns can make a huge difference in whether a customer chooses to do business with them again in the future.

By providing customers with a simple and streamlined returns process, companies can show that they value their customers’ satisfaction and are willing to go the extra mile to ensure that they are happy with their purchase. This can lead to increased loyalty and repeat business, as satisfied customers are more likely to recommend a company to others and make future purchases themselves.

Returns management also has a direct impact on a company’s bottom line. While processing returns may seem like a costly and time-consuming process, it is actually an investment in customer retention and long-term profitability. By making it easy for customers to return items, companies can reduce the risk of negative reviews, chargebacks, and lost sales that can result from unhappy customers.

In fact, studies have shown that customers who have a positive returns experience are more likely to make additional purchases from the same company in the future. This can lead to increased customer lifetime value and higher overall profitability for the business. Additionally, by analyzing returns data, companies can identify trends and patterns that can help them improve their products, services, and processes to better meet customer needs and reduce the likelihood of future returns.

Returns management also plays a crucial role in sustainability and environmental responsibility. Every returned item represents wasted resources, including raw materials, energy, and labor. By efficiently managing returns and implementing strategies to minimize return rates, companies can reduce their environmental impact and contribute to a more sustainable economy.

Furthermore, by reselling, refurbishing, or recycling returned items, companies can minimize waste and extend the lifecycle of products, reducing the need for additional production and consumption of new goods. This not only benefits the environment but also helps companies reduce costs and improve their overall sustainability efforts.

In conclusion, returns management is a vital aspect of modern business operations that goes beyond simply processing returns and issuing refunds. It is a strategic process that can have a significant impact on customer satisfaction, profitability, and sustainability. By investing in efficient returns management practices, companies can improve customer loyalty, increase profitability, and contribute to a more sustainable and environmentally responsible business model.

In Conclusion

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Returns Management Statistics 2024 – Everything You Need to Know