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After a record-breaking holiday shopping season, many consumers are now heading back to stores and websites to return purchases, highlighting the growing role of returns in the retail cycle. Between November 1 and December 31, online spending in the U.S. reached $257.8 billion, a 6.8% increase year over year, according to Adobe Analytics. In the days immediately following Christmas, returns spiked 4.7% compared to last year, a trend expected to continue into early January.

Returns as part of the shopping experience

Analysts say that returning items has become a normalized element of shopping. “It’s a pretty predictable uptick post-Christmas. That’s part of the overall experience,” said Vivek Pandya, lead analyst at Adobe Digital Insights. In 2025, returns accounted for roughly 16% of all merchandise sales, totaling nearly $850 billion. Online purchases see even higher return rates, climbing as high as 19%, reflecting the ease of buying multiple options and the convenience of free returns.

Consumers frequently engage in practices such as “bracketing” — buying multiple sizes or colors to ensure the best fit — and “wardrobing,” purchasing items for a single occasion with the intention of returning them afterward. Surveys indicate that 56% of shoppers bracket their purchases, while 69% admit to wardrobing.

Retailers adjust to rising return rates

Rising returns have forced retailers to rethink policies and fee structures. About 72% of merchants have introduced restocking fees, limited return windows, or restricted return options over the past year. This shift aims to curb excess inventory and mitigate lost revenue while balancing customer expectations.

Transparency is becoming crucial. Eighty-two percent of consumers now say free returns influence their purchasing decisions, up from 76% a year ago, and 81% check return policies before completing a purchase. A poor return experience can impact loyalty, with 71% of shoppers saying it would reduce their likelihood of shopping with that retailer again.

Experts note that returns are no longer just a back-office function but a frontline profitability issue. “That combination is turning returns from a back-office function into a front-line profitability issue,” said Gaurav Saran, CEO of ReverseLogix. Retailers that successfully manage returns while maintaining positive customer experiences can strengthen long-term relationships and revenue potential.

Tips for navigating return policies

Shoppers are advised to carefully review return windows, fees, and refund methods before buying. Apps like Refundly aim to track returns and simplify the process, providing more transparency and control over what can often feel like a confusing part of the shopping experience. With returns expected to remain a significant component of post-holiday commerce, understanding the policies and planning purchases accordingly can help consumers maximize convenience and minimize hassle.