The finding: As budgets tighten, consumers are giving retailers’ return policies a closer look. Nearly two in three consumers (63%) say they now review return policies more carefully, according to a Route survey of 1,000 US shoppers. That builds on behavior already deeply embedded in online shopping: 93% of consumers say they review a retailer’s return policy at least occasionally before making a purchase.

Other research points in the same direction. A report from FedEx and Morning Consult found that 68% of shoppers consider return policies when choosing where to shop.

That scrutiny directly shapes purchasing decisions. Some 82% of shoppers say they’re more likely to buy from a new brand if it offers an easy, straightforward return policy.

Zooming in: Younger shoppers are especially vigilant. About 37% of Gen Z consumers say they always review return policies, compared with 27% of millennials, 20% of Gen Xers, and 25% of baby boomers.

Why it matters: Returns are one of the most expensive and customer-sensitive parts of commerce. As ecommerce grows, return volume is rising in tandem, putting pressure on margins, operations, and loyalty at the same time.

Total US retail return volume—across physical stores and ecommerce—is projected to reach $876.69 billion in 2026, up 2.9%, according to our forecast. Those returns eat into retailers’ margins given that every $1 million in refunds adds up to roughly $1.3 million in total costs, considering logistics, inventory depreciation, processing fees, and fraud overhead, per ACI.

Implications for retailers and brands: Returns can either strengthen or quietly erode long-term relationships, which is why retailers must walk a fine line between making returns easy enough to build confidence and restrictive enough to protect margins.

On the upside, 97% of consumers say a positive return experience makes them more likely to shop with a retailer again, including 72% who strongly agree. Done well, returns reinforce trust and drive repeat business.

But the downside risk is significant. When returns are denied, 43% of shoppers say they keep the item but avoid the brand in the future. Others contact customer support (39%), resell the item (23%), dispute the charge (21%), or leave a negative review (17%).

Retailers need to recognize that return policies are a front-line brand signal. Those that are transparent, fair, and easy to work with can use returns to deepen customer relationships. Those that create friction risk losing shoppers.