The USPS recently published an article in their quarterly magazine on just that.

According to the National Retail Federation, $761 billion in merchandise sold in 2021 (accounting for 16.6% of total retail sales in the U.S.) was returned.

Returns first became popular in the late 19th century when mail-order catalogers used money-back guarantees to entice shoppers to purchase. Over time the return process became easier as retailers discovered that mitigating consumers’ risk was the key to more sales.

The article highlights the following statistics:

• 97% of consumers agree or strongly agree that the way a retailer handles returns influences their decision to use that retailer again.
• 92% of consumers will buy something again if returns are easy.
• 79% of consumers want free return shipping.
• 67% of shoppers check the return policy before making a purchase.
• 58% of consumers want a no-hassle return policy.

A shift in consumer buying habits now demands that returns be quick, hassle-free and inexpensive (or completely free).

Most consumers now expect to be able to try on sizes, colors and styles of items like clothing, shoes and accessories and have the flexibility to make their final purchasing decisions at home.

The key takeaway

“The facts are unassailable: The returns market is no longer a peripheral aspect of the retail experience. Returns must now be a critical part of every retail business strategy, and if handled poorly, returns can impact the long-term viability of every seller.”

Retailmenot.com published the 23 top retailers with the best return policy. Not surprisingly, Amazon ranked at number 1, but several other retailers had standout return policies as well.

Read the article for the complete list.

• American Eagle: Free Returns Anytime
• Athleta: Give it A Workout Guarantee
• Bath & Body Works: Anything, Anytime For Any Reason
• Bed Bath & Beyond: Easy-Peasy Returns With or Without Receipt
• Best Buy: Be Happy With Your Tech & Electronics
• Bloomingdale’s: 365-Day Return Policy
• Costco: Return at Any Time (no time limit)
• The Home Depot: Free, Fast and Easy Returns

The above-mentioned companies not only have great return policies, but they’re also up-front with their policies and often feature/highlight them in marketing campaigns.

Here are some tips to make your return policy a success!

• Clearly post your return policy – make sure it’s easy to find on your website, on your receipts/invoices, and in your store (if you have a brick-and-mortar shop.) Even if you think it’s clear, people will miss it, so make sure it’s blatantly obvious.
• Reiterate your return policy at the time of the sale. Verbalize the policy and have the customer acknowledge and ask any questions they might have about the policy.
• Make sure ALL of your employees are well-versed on your policy– everyone from the front counter to the back warehouse.

Have you had a great “return” experience? Share it with us in the comments section below.