Returns are a growing challenge for ecommerce brands, especially during the peak shopping season. According to Loop Returns, return volumes increased by 15.2% year-over-year (YoY) in 2024, with return values jumping by 17.5%. December 26 alone saw a staggering 30% YoY rise in returns.
This surge in returns presents both a challenge and an opportunity for ecommerce brands. Strategic follow-up emails about returns—not just abandoned carts—can turn potential revenue losses into gains. Brands that encourage exchanges or gift card credits instead of cash refunds retained 18.73% more revenue YoY. With an average return volume (ARV) of $134, these strategies add up quickly.
Certain sectors saw sharper increases. Cosmetics and personal care experienced a 36% rise in returns, while apparel accounted for half of all returns, with a 19% hike in merchandise value YoY. Meanwhile, innovative features like Keep Items, where customers keep items without returning them, saw a 61% increase in usage.
To enhance the customer experience during this busy period, offering instant refunds is a game-changer. This approach not only reduces friction but also builds trust, encouraging repeat purchases. As returns rise, the brands that prioritize seamless, customer-friendly solutions will stand out.
Yours truly,
The Instant Refund Expert®
The Refunds Blog 