The news: Nearly half of US and UK consumers admit to abusing retailers’ returns policies in the past 12 months, according to a survey conducted by The Harris Poll. Our take: Retailers face a Catch-22 when it comes to returns. Being too generous opens the door for fraud and can result in retailers being overburdened by reverse logistics costs. But being too restrictive can deter shoppers from opening their wallets.

Returns will pass the trillion dollar mark this year, with US ecommerce returns growth outpacing sales growth, per our forecast. “It’s important for retailers and brands to look at their returns, because those ultimately eat into their margins,” said our analyst Sky Canaves.

Online returns growth will outpace overall ecommerce growth through 2028, driving retailers to update their strategies and solutions to manage costs.

Retail returns will top $1 trillion in 2025: But growth will slow as retailers impose stricter policies, albeit at the risk of hurting sales.

Return fraud is accelerating: That's forcing retailers to evolve beyond traditional prevention methods.

Retailers try to rein in return fraud: Ecommerce’s growth this holiday season increases the pressure on retailers to combat fraud without pushing consumers away.

Return fraud cost retailers $101 billion last year, per NRF estimates: That poses a challenge as merchants need to balance mitigation measures with customer satisfaction.

Online return rates are finally coming down from recent highs. But as ecommerce's share of retail sales grows, so will returns from online sales.