As the peak shopping season approaches, ecommerce retailers face a growing challenge: the surge in product returns. A report from Loop Returns highlights significant year-over-year increases in return volume (15.2%) and value (17.5%), with the day after Christmas seeing a dramatic 30% spike in returns. This trend underscores the importance of strategic return management, especially as returns impact nearly every retail category.
Apparel remains the largest contributor to returns, accounting for 50% of total returns and experiencing a 19% hike in merchandise value year-over-year. Meanwhile, sectors like Cosmetics & Personal Care saw the steepest rise in return volume (36%) and value (38%). Even novel return practices, like “Keep Items,” grew by 61%, raising questions about its long-term viability.
Returns are not just a challenge—they’re an opportunity. Brands can use return emails to offer alternative options, such as exchanges or gift cards, instead of cash refunds. This approach helped brands retain 18.73% more revenue year-over-year.
To truly stand out, brands should prioritize customer convenience. Offering instant refunds can transform the return experience into a customer loyalty driver. By simplifying returns and delivering immediate value, ecommerce retailers can turn peak-season challenges into opportunities for lasting customer satisfaction.
Yours truly,
The Instant Refund Expert®
The Refunds Blog 