Reverse Logistics Still Pose Challenge to Retailers

Industry estimates show that returns continue to pose a significant challenge, costing retailers 20-25% revenue and accounting for $890 billion last year alone, according to Seel’s 2025 Returns and Refunds Report.

“Our goal with this report is to shed light on what retailers are really facing and what shoppers are experiencing during the busiest weeks of the year. Between recession fears, job uncertainty, increased buyer’s remorse, and growing trends like ‘try before you buy,’ we’re seeing shoppers be more thoughtful and take extra time thinking through purchases,” says Laura Huddle, chief revenue officer at Seel. “Post-purchase experience is playing an increasingly important role in a shopper’s view of the brand, with the vast majority now preferring that option to buy with confidence.”

Key takeaways:

·        Many treat returns as a normal part of shopping, with nearly one-third of shoppers returning at least one item a year and a smaller group returning multiple items across categories.

·        The study noted, during the holiday period (November and December), return activity increases by 16%.

·        Delivery issues are driving returns in fashion and accessories, including sharp increases in late deliveries (124% increase YoY) and missing packages (42% YoY).

·        Product quality concerns continue to influence returns across categories, including a year-over-year rise in defective products among computers and electronics (164% increase).

·        Post-purchase confidence affects conversions, with 74% surveyed shoppers saying they would not make a purchase without a return option.

·        The average returned item falls in the $100-200 range, and the report shows a 50% increase in shoppers selecting purchase protection for items $50 and above.

·        Secondhand return rates remain significantly higher than new items, with resale returned 140% more often, highlighting ongoing friction for resale during peak shopping week.

·        Looking at year-over-year data, the main reasons for returns were the result of quality and reconsideration, with defective item returns rising 14% and change of mind returns climbing 9% in 2025.