What Consumers Want: Trends in Returns and How Retailers Can Adapt
Retailers have long tried to discourage returns by making the process inconvenient, hoping to avoid the financial burden of return logistics. That approach is no longer viable. Today’s customers expect returns to be just as seamless as their original purchase, and those expectations are reshaping the industry.
A new report from the National Retail Federation (NRF) and Happy Returns shows that 76 percent of shoppers consider free returns a key factor in choosing where to buy, and 67 percent say a negative returns experience would discourage them from shopping with a retailer again. Yet, while consumer expectations rise, the costs associated with managing returns continue to climb, with retailers estimating $890 billion in returns last year.
This growing pressure is forcing retailers to rethink how they handle returns. Returns are a logistical necessity, but when executed well, they can become a competitive advantage.
Retailers that embrace this shift can turn what has traditionally been a cost center into a tool for customer retention and brand loyalty. More flexible, convenient options for customers paired with greater transparency about return policies can rewrite the playbook.
Service at the Doorstep
Shoppers want the same seamless returns experience they had when making the purchase. Retailers that eliminate unnecessary steps, such as requiring boxes and labels, are seeing higher customer satisfaction and retention. The NRF and Happy Returns report reveals that 84 percent of consumers are more likely to shop with a retailer that offers box-free, label-free returns and immediate refunds.
Third-party drop-off locations have gained popularity, but even those may not be enough. Customers increasingly expect retailers to pick up returns from their homes, mirroring the same level of convenience they experience when making a purchase.
Another key factor is transparency. When return policies are confusing or difficult to find, consumers hesitate to buy. Clear communication around return windows, refund timelines, and available return methods can directly impact conversion rates and customer loyalty.
Smarter Fraud Detection
Managing returns isn’t just about convenience — security is paramount for retailers. Fraudulent returns, from sending back incorrect items to organized retail crime, cost retailers $103 billion last year, according to Deloitte and Appriss Retail. To combat this, companies are leveraging technology to verify return authenticity at the point of pickup.
Artificial intelligence-driven solutions are already being tested, using image recognition and item scanning to validate returns before they enter the reverse logistics chain. This protects retailers and accelerates the refund process for legitimate customers, ensuring a smoother overall experience.
Optimizing the Process
With billions in merchandise flowing back through the supply chain each year, optimizing the returns process is critical. The challenge lies in balancing speed, accuracy and cost effectiveness.
One key strategy is consolidation. Retailers are exploring ways to batch returns with existing deliveries, reducing the number of trips required to pick up and transport items. This lowers costs and creates new opportunities for retailers to offer same-day and next-day returns pickup services.
Another emerging trend is leveraging cross-docking facilities to streamline returns. Unlike traditional return processing, where items are sent back to centralized warehouses before being restocked or resold, cross-docking allows returned products to be quickly inspected and redirected to fulfillment centers or store shelves, reducing transit time and operational costs.
Retailers that integrate smarter logistics, dynamic routing, and partnerships with last-mile delivery providers are reducing the friction associated with returns, lowering operational costs, and increasing efficiency. Returns don’t have to be a liability. When managed well, they can become a strategic advantage.
Dennis Moon is the chief operating officer of Roadie, a crowdsourced delivery platform that enables urgent, same-day and local next-day delivery.
Dennis Moon, Roadie’s COO, has served in executive management positions in both public and privately held companies over the past 15 years, including as executive vice president for Medovex Corp. (Nasdaq: MDVX), a medical device and technology company, and chief operations officer for JCS, where he assisted in the sale of the company to a private equity fund and remained COO of the JCS Division for Correctional Healthcare Companies. As COO, his responsibilities included supervising the day-to-day operations and maintenance of over 50,000 monthly clients, over 200 city, county and state contracts, 70 physical office locations, over 400 employees and over 1.8 million financial transactions per year.
Prior to his career in executive management, Dennis served in the U.S. Army as an intelligence analyst and combat engineer with TS/SCI Clearance. He holds a bachelor’s degree from the University of Central Florida.
