Online Shopping Returns: What Stricter Policies Mean for Shoppers and Savings in 2025

A new survey of 1,000 U.S. shoppers reveals that 79% have encountered tougher return rules — and many are walking away from brands because of them.

Key Findings

• Tightening return rules are now the norm: 79% of shoppers have encountered stricter return policies in the past year — including return fees, shorter return windows, and store-credit-only refunds.
• About 38% of shoppers have received a “keep the item" refund in the past year. This policy boosts retailer reputation — 78% of online shoppers said it improved their opinion of the brand.
• Restrictive policies push loyal customers away: While 90% of shoppers say generous return policies increase their loyalty, 80% admit a single bad return experience could cause them to abandon a retailer altogether.
• Sizing and product issues drive most returns: Shoppers return an average of 13 purchases a year. The main reasons for returns are wrong fit or size, defective or damaged items, and misleading descriptions.

Online shoppers return one-quarter of purchases, costing sellers hundreds of billions of dollars each year. Many platforms are now drastically tightening their return policies to combat those losses.

Savings.com surveyed 1,000 adults regarding their shopping and return habits to gauge how such crackdowns impact shoppers. We also got their opinions on new store policies and return fees, and tested the limits of their brand loyalty.

The New Return Policy Reality

Many prominent retailers offer free merchandise returns to ease consumer concerns when shopping online. Providing such confidence and convenience has propelled e-commerce sales past $1.3 trillion annually – nearly 20 percent of domestic retail revenue.

Yet, free returns also cost sellers dearly: last year, Americans sent back $362 billion of merchandise. Beyond the lost sales, returns incur additional shipping, packing, and restocking expenses (each parcel sent back costs an average of $30 to process).

Those costs add up when online shoppers return an average of 13 items yearly. Customers in higher income brackets return almost twice that number of purchases.

How many online purchases does the average person return each year? By income level

Many platforms are rolling out rules that limit return options and availability to plug this hole in their profits. These include return fees, shortened return windows, “final sales" policies, and store credit only instead of cash refunds. Seventy-nine percent of shoppers have already encountered one or more of these restrictions.

In the past 12 months, when returning an item purchased online, which of the following have you personally experienced?

Note: multiple selections allowed

Nearly 40 percent of shoppers were granted a “returnless refund" in the last year. One quarter received only store credit. One-fifth of customers encountered a return window of two weeks or less, while around 10 percent faced a fee or onerous logistical requirements.

Here is a brief explanation of the more prominent return policy modifications.

Return fees: Prominent platforms from American Eagle to Zara have begun charging customers $4-$12 to return unwanted items. Fees vary by retailer and may be waived for loyal clients, store credit card holders, or those who physically return items to approved drop-off points.

Shortened return windows: Instead of a standard 30-day period, popular retailers like Apple and Best Buy now grant only two weeks for returns. We found that 15 percent of shoppers had been stuck with unwanted merchandise because return deadlines had expired.

Store credit: Some sellers provide store credit instead of reimbursing the purchase price for returned items. Retailers may spin this as a "Loyalty Refund," but consumers often see it as a “Store Credit Trap": 72 percent of shoppers said they prefer cash refunds.

Returnless refunds: With some less valuable items, retailers may offer full refunds and allow customers to keep the product. Though this approach is ripe for abuse, it can also build clientele trust: 78 percent of online shoppers said this policy enhanced their opinion of the retailer.

Limiting returns clearly benefits retailers, but do they pay a heftier price in the long run? Many of these policies turn off customers.

The Customer Backlash: Why This Strategy Is Risky

Our survey showed that return policies significantly influence consumer behavior. More generous policies breed customer loyalty, but frustrating restrictions can discourage purchases or drive away clients after the fact.

Online shoppers regularly touted the allure of hassle-free returns. They cite customer-friendly policies like “no questions asked" refunds, simple online returns processing, clear instructions, prepaid shipping labels, scannable QR codes, and convenient drop-off points. Nine out of ten online shoppers agreed that favorable return policies increased brand loyalty, with two-thirds strongly endorsing that concept.

Conversely, disappointing return protocols can negatively impact shopper sentiments. Nearly 90 percent of Americans said encountering bad return policies causes them to reconsider purchases. This perspective was shared across all demographics, but was strongest among those aged 45 and above - perhaps reflecting older generations’ higher expectations for customer service.

Return fees are especially likely to make consumers hesitant about buying online. This attitude was particularly true for big-ticket items (which generally carry higher costs), personal apparel (often returned for sizing reasons), and gifts purchased for others (which might not suit recipients’ tastes).

The threat of unfavorable return policies may dissuade purchases, but actually navigating negative refund protocols can drive customers away forever. Four out of five shoppers say that a bad return experience might lead them to abandon the retailer responsible.

Retailers should exercise caution when implementing restrictive return guidelines. Implementing poor policies can undermine sales and damage patron relations. By limiting refunds and discouraging returns, sellers also slash shoppers’ savings.

Rigid Refund Policies Undermine Consumer Savings

Online shoppers – especially Savings.com readers – surf sites for excellent bargains. Unfortunately, the hidden fees and logistical hassles of strict return policies undermine apparent deals and eat into customers’ wallets.

Even quality discounts quickly evaporate when saddled with refund fees or unreturnable items. Saving $10 is appealing at checkout but it will mean little in the face of a $12 restocking fee. Worse yet, onerous policies that prevent merchandise returns leave customers out of their full purchase price and stuck with unwanted items. Nearly 60 percent of shoppers have kept unwanted items because the return process was too much of a hassle—even though the average abandoned return is worth $50.

Among those who recently gave up on returns because of difficult policies, two-thirds simply didn’t want to deal with the return process. Another 40 percent found the return requirements too confusing or time-consuming. About half didn't want to transport their items to a return location or post office, and a third found return fees too high. One quarter discovered their return window had already closed.

Note: multiple selections allowed

Women were more likely to avoid travelling to drop-off points, and men were more frequently frustrated with instructions or thought the process took too much time. Such demographic differences are key to unlocking more efficient retail solutions and ultimately guide future e-commerce solutions.

What's Really Driving Returns (And What Retailers Should Fix Instead)

Consumer refunds are poised to become a trillion-dollar retailer headache without a clear solution. Restricting returns is a quick fix but also decreases sales and drives customers elsewhere.

Targeted return policies may represent the industry’s best answer. Instead of blanket restrictions that oppress every shopper, some platforms rely on predictive analytics to tailor optimal refund processes for each client or purchase. Such dynamic solutions must be data-driven, and our survey provides some insights.

Poorly fitting merchandise was the leading cause of returns, followed by item damage or defects. Often, consumers receive the wrong product (or one that didn’t meet advertised descriptions). Some customers had changed their minds or found the identical merchandise at a better price elsewhere.

Armed with such data (and aided by AI analysis that identifies high-risk customers), retailers can devise reasonable policies that better suit both buyers and sellers.

For instance, virtual fittings and sizing transparency can help consumers find the right style and fit the first time. Improved fulfillment accuracy and quality control can stop flawed shipments before leaving the warehouse. Price-matching guarantees may trim profit margins but prove more economical than accepting returns.

Beyond improving operational efficiency, retailers are intently focused on reducing rampant fraud. Countermeasures will play a significant role in shaping future return policies, as merchants attempt to thwart popular scams, such as:

• Empty boxing occurs when customers receive a purchase refund but fail to return the merchandise. They often mail back an empty box or an alternative item.
• Item not received claims: Buyers claim a parcel was stolen or never delivered and demand a refund while retaining the items.
• Bricking: Bricking often happens with electronic items. Customers with broken devices purchase new ones and return the damaged models (or steal components from the new item before returning them as defective).
• Chargeback fraud: This scam occurs when customers buy items and wait for delivery before claiming a legitimate charge was unauthorized. Charges are often reversed while scammers hold on to the merchandise.
• Wardrobing: Shoppers needing an outfit for a special occasion may buy dresses, suits, shoes, and accessories with no intention of keeping them. After wearing them briefly, they return the used pieces for a full refund.

Tips for Saving and Simplifying Returns

For savvy shoppers, there are ways to avoid getting stuck with return fees or unwanted items. Here’s what we recommend:

1. Check return policies before purchase: With evolving store policies, verifying return policies before completing a purchase has never been more critical. Avoid return fees that might wipe out good deals, and avoid store credit traps if you prefer cash back.
2. Return online purchases in-store: Shipping and restocking fees can often be avoided by physically returning merchandise to the vendor. To make this easier, buy from large chains with convenient brick-and-mortar locations (like Walmart or Target) or platforms that have drop-off points and third-party partnerships (with Amazon, customers can leave returns with UPS Stores, Whole Foods, Amazon hub lockers, or Kohl’s department stores).
3. “Bracket" with care:  If you plan to “bracket" – or order multiple sizes of clothing items – double-check to ensure you're purchasing from a retailer without reshipping or restocking fees. Better yet, find a store with pre-printed return labels and reusable packaging. Amazon, Zappos, Nordstrom, and Macy's are major merchants permitting their clients to bracket.

Our Data

This study examined how changing e-commerce return policies affect U.S. consumers. It was based on an online survey of 1,000 U.S. adults, designed to reflect national demographics. The goal was to understand how different return policies—like store credit refunds, restocking fees, and shorter return windows—shape customer attitudes, buying behavior, and brand loyalty.

Participants were recruited through a trusted online platform to ensure diversity. The survey ran from August 8–9, 2025, and included both standard questions and short scenarios. These explored how people act and how they feel—such as frustration or regret—when faced with strict or confusing return rules. Topics covered included “all sales final" policies, exchange-only systems, “returnless refunds," and “return fatigue."

Only complete and eligible responses were analyzed. Data was cleaned and aligned with U.S. Census benchmarks to ensure accuracy and reliability. This careful approach supports strong, trustworthy conclusions about how today’s retail return policies influence consumers.