The January spike in returns, widely called Returnuary, exposes a critical weakness in retail: slow refunds.
When customers return items, they are already experiencing mild dissatisfaction. Adding a multi-day refund delay compounds that frustration and increases the likelihood of churn.
Data from the Where Is My Refund report by TodayPay shows 95% of consumers prefer merchants offering an instant refund. That preference directly correlates with repeat purchase intent.
Retailers who eliminate refund delays preserve emotional goodwill. Immediate reimbursement allows customers to reallocate funds instantly — often back to the same brand.
In a climate where acquisition costs continue rising, improving refund speed may be the most efficient retention investment available.
Yours truly,
The Instant Refund Expert®
The Refunds Blog 