A ‘Returns Revolt’ is Underway, Study Finds

Retailers’ outdated return policies are suppressing demand, eroding trust and stopping shoppers from buying in the first place, a new study from market research firm Cashew finds.

For that report, titled “The Returns Revolt,” Cashew surveyed 2000 consumers across Canada and the U.S. and uncovered a critical shift: “Returns are no longer a back-office cost. They are a front-line conversion driver. Nearly half of shoppers say they hesitate to purchase if return shipping is not free, regardless of product or price.”

“CMOs are optimizing ads and checkout flows while ignoring one of the biggest trust signals in commerce,” says Cashew CEO Addy Graves. “Returns don’t just impact margins after the sale. They determine whether the sale happens at all.”

Here are four key trends the report uncovered:

* Return fees are blocking conversion before checkout: Nearly half of all consumers surveyed (47%) hesitate to purchase when return shipping isn’t free, according to new data, reducing repeat purchases and long-term loyalty.

* Sizing issues account for most returns: While one in four purchases fails because products do not meet expectations, in apparel, 74% of returns are due to fit alone. Static size charts and generic visuals no longer meet shopper expectations. Consumers increasingly demand clear guidance and confidence before clicking “buy.”

* Older shoppers do the most returning: Shoppers over 45 account for more than half of all returns, with consumers aged 65 and older representing the largest segment. “High return rates aren’t about bad customers,” Graves says. “They’re signals that experiences weren’t designed for the people driving the most revenue.”

* Returns start before checkout: 35% of shoppers add items to their cart expecting to return them, and more than half say they will not complete a purchase without detailed sizing visuals or guidance.

The solution to the various challenges outlined above? View returns strategy as growth strategy, Cash advises.

“Brands that reduce friction, invest in sizing intelligence and design for multi-generational shoppers don’t just lower return rates,” the report concludes. “They unlock conversion, trust and long-term loyalty.”

Click here for access to the full report.