Rithum's 2025 Global Returns & Profit Impact Report Uncovers Consumer Expectations and Strategic Opportunities for Retailers and Brands Struggling with Returns Management

National Post

15-05-2025

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Returns are shaping purchasing decisions – Rithum's new data reveals 47% of consumers have stopped shopping with a retailer over a return policy, and 88% now expect free returns, highlighting opportunity for loyalty and long-term profitability
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ATLANTA — Rithum, a leading global commerce solutions provider, today released its 2025 Global Returns & Profit Impact Report, which uncovers how return policies are increasingly shaping purchasing decisions. With insights broken down across countries, product categories, consumer age groups, and more, the report highlights what brands and retailers can do to reclaim margin in a return-heavy economy.
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Returns have become deeply ingrained in the online shopping journey with 60% of global consumers making a return in the past 12 months and apparel and electronics leading all categories. Yet returns are not merely reactive: 36% of consumers globally admit to overbuying with the intention to return, signaling a shift toward strategic return behaviors.
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'Returns are no longer a post-purchase afterthought – they're shaping buying decisions,' said Lou Keyes, CEO at Rithum. 'For brands and retailers, the return experience has become a critical business lever, not just a logistical function. The businesses that adapt can turn them from a cost center into a competitive advantage.'
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This report surveyed more than 6,000 global consumers across the U.S., Canada, U.K., France, and Germany. Some key insights shaping returns in 2025 include:
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Online product presentation makes or breaks post-purchase satisfaction. As digital shopping becomes more visual and distributed across platforms, inaccurate product listings fuel returns.
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61% of consumers cite poor fit as the main reason for returning items
33% returned products that didn't match their online description or images
Half of shoppers rely heavily on customer reviews when buying clothing or shoes
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Return policies are deal breakers – and brand loyalty hinges on them. Consumers are increasingly using return policies as a deciding factor in where they shop.
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88% expect free returns as a standard offering
41% say they consider return policies before making a purchase
47% have stopped shopping at a retailer because of an unfavorable return policy
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Return behavior varies by region, underscoring the need for localized strategies. With return rates differing by as much as 20 percentage points between countries, brands can't afford a one-size-fits-all approach.
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57% of German consumers and 64% of French consumers consider a return window of 14 days or less to be reasonable, compared to much longer expectations in North America
Over 60% of fashion items are refunded in parts of Europe, where shoppers frequently order multiple sizes or colors with the intention of returning
54% of electronics are returned in Germany and 51% in the U.K., while beauty and personal care returns are more frequent in North America
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The fashion industry continues to lead in return volume – and intentional overbuying is widespread. The apparel sector experiences the highest return volume, with many shoppers bracketing purchases.
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68% of consumers returned clothing or footwear in the past year
36% admitted to 'bracketing': intentionally buying multiples to try on at home and return
50% of shoppers under 35 say they commonly buy more items than they need with the intent to return
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'As consumers look to get more for their money, they want to trust that they'll get what they paid for,' said Suzin Wold, CMO at Rithum. 'When product content and return policies don't match the actual experience, it breaks that trust. Today's shoppers expect accurate, detailed listings – and anything less risks both returns and lost loyalty.'
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Rithum empowers brands and retailers to turn returns from a margin drain into a business advantage. With solutions that support accurate product listings, AI-driven categorization, SKU-level profitability insights, and localized return policy management, Rithum helps retailers get ahead of returns before they happen.
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Rithum (formerly CommerceHub and ChannelAdvisor) is one of the industry's most influential and trusted commerce networks, helping brands, retailers, and suppliers work together to deliver third-party (3P) commerce experiences. The Rithum platform helps brands and retailers accelerate growth, optimize operations across channels, scale product offerings and enhance margins. Using its commerce, marketing, delivery and discovery solutions, Rithum customers create optimized consumer shopping journeys from beginning to end. More than 40,000 global brands trust Rithum to grow their business across hundreds of channels, representing over $50 billion in annual GMV. Rithum processes an average of 2.4 billion transactions every day for retailers like Best Buy, Adidas, The Home Depot, and more.
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