Consumer Behavior

Retail returns hits $743B in 2023

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January 3, 2024

Total retail returns in 2023 hit $743 billion, according to a National Retail Federation and Appriss Retail report.

In terms of sales percentage the total return rate was 14.5%, according to a press release on the report's findings.

For every $1 billion in sales, the average retailer incurs $145 million in merchandise returns, according to the data, with online sales experiencing a higher return rate of 17.6%.

"Retailers continue to test and implement new ways to minimize losses from returns, particularly those that are fraudulent, while at the same time optimizing the shopping experience for their customers," NRF Executive Director of Research Mark Mathews said in the release. "Retailer's efforts include providing greater detailed descriptions on sizing and fit of products for online purchases and requiring a receipt with returned items. As a whole, the industry is prioritizing efforts to reduce the amount of merchandise returned in stores and online."

This year, return fraud contributed $101 billion in overall losses for retailers. Moreover, for every $100 in returned merchandise, retailers will lose $13.70 to return fraud, according to the report.