The value of merchandise returned to retailers in 2021 was up 78 per cent compared to that in 2020.So says retail tech company Narvar. Apparel and footwear account for 46 per cent of returns.

Poor fit remains the top reason for returns. Consumers are increasingly adopting third-party drop-off locations. Third-party drop-off adoption has grown steadily for four years now, from 11 per cent in 2019 to 19 per cent in 2022, reflecting shopper demand for a wider range of convenient return methods.

Shoppers are willing to pay for added convenience such as scheduled home pickup when returning items but less than half of retailers currently charge any kind of return shipping or restocking fee. Shoppers are benefiting from retailers’ generous return policies. Return windows are getting longer, refunds are happening faster, and technology is making returns easier than ever before—boosting customer satisfaction. There is a significant opportunity here for retailers to increase loyalty and retain revenue by offering differentiated and personalized return policies that meet different customers’ needs.

Categories with the highest return rates are similar to 2020 metrics: auto parts (19 per cent), apparel (12 per cent) and home improvement and housewares (tied at 11 per cent).