When it comes to shopping, there is one stop in the journey that is gaining more attention than ever. A new study by the UPS company Happy Returns puts a spotlight on the growing influence of returns on consumers and retailers. From shaping purchase decisions to determining customer loyalty, returns have become a key part of the retail landscape.
Here are the top three trends that retailers need to know:
🔥 Customers consider returns even before clicking ‘add to cart’
Consumers are considering return policies with every online purchase. It is a trend that is putting pressure on retailers to deliver seamless return processes. Why? Because 16.9% of all retail sales in 2024 are projected to be returned, totalling a staggering $890 billion.
It is not just about logistics, either. As Anders Ahlberg, product manager of ecommerce and returns at Lands’ End, explains, ‘Delivering a better return experience is an integral part of taking care of our customers.’
📦🚫 Shoppers love box-free, label-free returns
The consumers have spoken: 84% of shoppers are more likely to buy from retailers offering box-free, label-free returns and immediate refunds. Note from the editor: UPS knows *a little something* about no-box, no-label returns.
And retailers are taking note, with 68% of those surveyed saying they are prioritising upgrades to their returns capabilities within the next six months. Many view a streamlined returns process as critical to hitting their 2025 business goals.
For retailers like Lands’ End that ship with UPS, making returns convenient has paid off. ‘Most of our customers are within 10 miles of a Happy Returns drop-off point. We have a lot of rural customers as well, so this was critical for us’, Ahlberg said.
📈 Better returns = bigger sales
Our study reveals a clear link between easy returns and customer loyalty. 40% of retailers agree that improving the returns experience leads to increased spending with their brand. In other words, a great returns process builds trust and encourages repeat business.
‘Our average customer tenure is almost 20 years. We have achieved that by being laser-focused on taking care of our customers,” Ahlberg said. That dedication includes embracing innovative solutions with UPS and Happy Returns. Together, we are helping businesses balance customer satisfaction with operational efficiency.
In a world where shoppers have endless options, a smooth returns process could be the secret to winning their business – and their loyalty. For retailers, the message is clear: Make returns easy, and customers will keep coming back.
Learn more about our study with Happy Returns and The National Retail Federation here.