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Published by SKF-Team | April 23, 2025
Returns cost retailers billions each year, but they’re also a customer touchpoint you can’t ignore. According to the National Retail Federation, U.S. retailers saw $743 billion in returns in 2023—almost 18% of total sales. That’s a major expense, but also a huge opportunity.
A recent Retail Gazette article (April 2025) points out that businesses reframing returns as a service and retention tool—not just a cost—are seeing better margins and happier customers. Here’s how they’re doing it.
Key takeaways from Retail Gazette and supporting industry sources:
On top of that, ReturnPro found that 76% of customers say return convenience influences future purchases.
Encouraging exchanges instead of straight refunds keeps revenue in the system. Retailers like Zalando use app-based return flows to recommend alternatives, cutting refund requests by 22%.
Rather than waiting for returns to process, give customers instant credit. ReturnPro reports this speeds up repurchases by 65%.
Use tiered policies to manage risk and reward loyalty—longer windows for VIPs, tighter terms for low-value items.
Analyze which items get returned most and why. Brands like Nordstrom use this info to guide inventory decisions and cut losses.
Some retailers charge small fees during peak seasons. Done right, this reduces unnecessary returns without hurting customer trust.
In an era of rising logistics costs and fierce competition, efficient returns are more than operational—they’re strategic. A good return experience can turn a one-time shopper into a repeat customer. According to the NRF, 79% of consumers say a positive return builds loyalty—even if the first product didn’t work out.
Returns aren’t going away—but with the right approach, they don’t have to be a loss. From improved policies to better tech, retailers can reduce costs, retain more revenue, and build stronger relationships with customers.
