This year, US retail returns volume will reach $627.34 billion, representing 8.5% of all retail sales, according to our forecast. After surging in 2020 and 2021 (due to the pandemic ecommerce boom and stimulus-driven boost in consumer spending), growth normalized last year and will continue to slow through 2024.

Retailers struggle under the weight of holiday returns: Global returns grew 63% YoY as economic concerns drove shoppers to rethink purchases.

“We used to talk about ‘omnichannel’ and we should just be talking about ‘commerce.’” That’s according to our analyst Suzy Davidkhanian, speaking on our “Behind the Numbers: Reimagining Retail” podcast.

The leading reason consumers in the UK and US return online purchases is due to fit, size, or color, according to Coveo. Damage, defects, and poor quality are other top reasons. Some 18% of UK and US consumers make returns because they order multiple sizes with the intent of keeping only those that fit.

Retailers’ return rates are rising: That’s a significant challenge to merchants’ bottom lines, but it also presents an opportunity for those that offer a straightforward process.

What does 2023 have in store for retailers? The answer is a bit of a mixed bag.

Economic conditions will have a huge effect on the retail, media, and marketing industries in 2023. For companies to succeed, the cost-conscious consumer must be front and center.

Another eventful year is on tap for retailers as inflation forces consumers to prioritize basics, supply chain snarls continue, and customer loyalty wanes. Retailers that cut costs or add new revenue streams—and provide frictionless customer experiences—will prevail.

The share of online purchases that shoppers return keeps rising: That’s a growing challenge for retailers seeking to rein in costs without hindering the customer experience.

With Black Friday just a week and a half away, the holiday shopping season is upon us. And for every perfect gift that consumers cross off their lists, there’s bound to be one or two that miss the mark. Retailers are already preparing for the inevitable pile up of returns, which is good because those costs can swell quickly.

Temu bets low prices will be enough to attract shoppers: But the Pinduoduo-owned platform will have to improve the customer experience to turn initial interest into lasting gains

Walmart’s holiday messaging focuses on convenience and value: The retailer introduces three new returns options and price rollbacks in key categories.

Charging for returns is an easy way to lose customer loyalty: Retailers need to think of returns as an extension of the customer experience—and not just a cost to be managed.

This week, our Reimagining Retail podcast crew gave their predictions on what will drive the next phase of ecommerce growth, ranked from least “spicy” to four-alarm fire.

Macy’s, Nordstrom bet on smaller stores as shoppers move away from malls: Department stores are taking a localized approach to reach more consumers and speed up fulfillment.

Retailers embrace unconventional returns tactics: While some like Boohoo are charging fees to offset costs, other methods like UGC content and peer-to-peer returns are gaining steam.

Retailers struggle with online returns, but charging won’t help: Brands like Asos and Boohoo should focus on improving the customer experience to help mitigate the effects of inflation and bracketing.

Zara is charging UK customers £1.95 to return online orders: The fee may help preserve Zara’s margins, but it could come at a cost to brand loyalty.

Retailers need multiple approaches to curb the cost of returns: With online returns costing retailers 21% of their order value on average, retailers need several ways to lower associated fees.

On today's episode, we discuss how buy now, pay later (BNPL) adoption will continue to evolve and what's next for these services. We then talk about what retailers' first step into the metaverse should look like and what retailers should be doing with their avalanche of returns. Tune in to the discussion with our analyst Sky Canaves.