Retailers are heading into the holidays with a new set of pressures, according to ReturnPro’s 5th Annual Holiday Returns Report.
ReturnPro’s report shows that while retailers are tightening policies and testing new fraud controls, returns remain a powerful differentiator. The report found that, on average, a typical shopper sent back more than $51 worth of goods last holiday season, and for many retailers, the figure exceeded $100 per person.
“The holiday season is always a test for retailers, but this year the stakes are higher because of tighter inventory, rising fraud risks, and growing consumer expectations for instant, frictionless returns,” says Sender Shamiss, co-founder and CEO of ReturnPro. “Companies that view returns not just as a cost center, but as a lever for recovery, customer loyalty, and operational discipline will be the ones positioned for success during the 2025 holiday season.”
Key takeaways:
- Over half (57%) of retailers cite low stock as a moderate-to-severe problem heading into the holidays.
- 75% of retailers say return fraud worsens during the holidays, most often involving shoplifted goods, used-but-non-defective items, or fraudulent tender.
- More than one-third (69%) of retailers are more stressed about tariffs now than they were in March.
- Over half (52%) expect more holiday sales growth in 2025 than in years prior, attributing the growth to increased prices, not volume.
- Just 16% began sales in August or earlier, compared to 31% last year, with most activity now concentrated in September (28%) and October (35%).
- Only 6% of retailers now call returns a severe problem, down from 49% in 2023.
