Online returns hit a record $743B in 2024, costing retailers profits and harming the environment. Discover why returns are rising and how brands like Backsy are turning this challenge into opportunity.
Online returns hit a record $743B in 2024, costing retailers profits and harming the environment. Discover why returns are rising and how brands like Backsy are turning this challenge into opportunity.
Backsy Admin
In 2024, the eCommerce industry is facing a growing crisis that many are calling a new kind of pandemic: online returns. According to the State of Retail Returns 2024 report by Optoro, U.S. consumers returned a staggering $743 billion worth of merchandise this year — roughly 17.6% of total online sales.
That number isn’t just a statistic. It’s a loud, painful wake-up call. Retailers are bleeding profits. Warehouses are overflowing. Customers are becoming increasingly picky, while the planet suffers from the environmental cost of this tidal wave of returns. And let’s be honest: the current return systems just aren’t working anymore.
Let’s be real: we all love the freedom of online shopping. You scroll, you click, you buy. But you also often return. In today’s try-before-you-keep world, practices like “wardrobing” (wearing once, then returning) and “bracketing” (buying multiple sizes/colors to choose from) have become common.
COVID-19 reshaped how we shop, but it also widened the gap between expectations and reality. Sizes don’t fit, colors don’t match, and the moment that unboxing joy turns to disappointment, the item is headed back.
Returns aren’t free. Far from it. Behind every “easy return” button is a complex, expensive, and often wasteful process.
But the damage goes beyond the balance sheet:
If you thought free returns were harmless, think again. The cost isn’t just financial. It’s environmental, emotional, and increasingly, unsustainable.
This isn’t the end of the story. In fact, it might be the beginning of something smarter. Here are some key trends reshaping the return landscape:
Tech companies like Optoro are building AI-driven return platforms that use predictive analytics to sort, restock, and resell returned products faster and more efficiently.
But there’s a risk: 80% of shoppers say they’d stop buying from a brand if return policies become too strict. So, it’s a delicate balance.
These aren’t just eco-friendly options. They’re business-smart too.
Not all returners are equal. Studies show that loyal customers who return occasionally are 4x more valuable than those who don’t return at all. Don’t penalize everyone. Learn who to keep and who to challenge.
Use data to set limits, offer incentives for exchanges, and communicate transparently. Fair doesn’t have to mean “free.”
Give customers the right product the first time: high-quality images, video try-ons, sizing guides, and even AR fitting rooms.
Returned products don’t have to go to waste. Platforms like Backsy help stores resell returned goods or donate them easily, turning losses into new opportunities.
$743 billion is more than just a big number. It represents broken systems, frustrated customers, and a massive opportunity to evolve.
Retailers who see returns as a strategic touchpoint, not just a cost center, will lead the next era of eCommerce. By adopting smarter technologies, ethical policies, and a customer-centric mindset, we can transform returns from a burden into a strength.
Because in the end, the brands that make returns easier, smarter, and more human — are the brands we return to again and again.
Backsy is helping eCommerce brands across the world manage returns with clarity, ease, and integrity. Learn more at backsy.io.
Streamline returns & exchanges with powerful automation, flexible conditions, and a seamless customer experience — built for Shopify brands.
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