Stricter returns policies deter two-thirds of global shoppers

A survey has found that stricter retail returns policies are having a significant impact on global consumer shopping behaviour.

The 2025 Global Consumer Retail Returns Survey, conducted by Blue Yonder and based on responses from more than 6,000 consumers globally, shows that 66% of respondents are deterred from making a purchase due to tougher returns restrictions. The study covers consumers in Australia and New Zealand (ANZ), France, Germany, the Middle East, the United Kingdom, and the United States.

Changing customer priorities

The survey highlights substantial reluctance among shoppers about purchasing from retailers that have implemented stringent returns policies. Notably, 84% of global respondents state that they would stop shopping at their favourite retailer if stricter returns were introduced. The sentiment is particularly evident among Millennial and Generation Z consumers, with 74% and 71% respectively indicating that they are deterred by tighter returns rules, closely aligning with figures from the previous year.

Across regions, consumers in the Middle East are most affected, with 75% reporting they are put off by restrictive returns, followed by France at 70%, Germany at 65%, the United Kingdom at 63%, ANZ at 62%, and the United States at 59%.

"These findings highlight the negative consumer attitudes toward tighter returns policies, with a majority of consumers continuing to make decisions on where to shop based on these policies," said Tim Robinson, Senior Vice President, Commerce and Returns at Blue Yonder. "Across generations and regions, consumers are consistent in believing that returns restrictions are unfair and inconvenient to them, underscoring their expectation for an easy and hassle-free process. With 9.5 billion pounds of returns ending up in landfills, it's more important than ever that retailers develop customer-friendly processes, while more efficiently managing returns across omni-channel environments to reduce costs and unnecessary waste."

Returns fees and policy impact

The inconvenience of returns fees is an important issue highlighted by the survey. Half of all global respondents identified being charged to make a return as the most inconvenient part of new returns policies. Despite the inconvenience, many consumers are still prepared to pay these fees. However, certain groups, especially Baby Boomers, are more likely to forego returning an item if a fee is charged. For example, 45% of US Baby Boomers report they would not return an item if it meant paying a fee, with similar proportions in the Middle East (44%), the UK (41%), Germany (17%), and France (16%).

Regionally, US consumers are most likely to avoid returning fee-based items (36%), followed by the UK and ANZ (both 31%), Middle East (12%), France (11%) and Germany (10%).

Shifting 'keep it' practices

The practice of retailers telling customers to keep items rather than return them, often seen during the COVID-19 pandemic, appears to be on the decline. The survey notes that 60% of respondents have recently been told to keep a product instead of returning it, a reduction from 72% in 2024. This trend varies by region: most prevalent in the Middle East (73%), followed by France (68%), Germany (67%), the US (55%), the UK (50%), and ANZ (47%). Clothing and accessories are most often the focus of such policies, followed by electronics and groceries.

Return rejections and generational differences

Return rejections by retailers are also a growing concern. Over one-third (36%) of all survey respondents said they had a return rejected in the past year. Gen Z consumers are most likely to experience rejected returns at 49%, followed by Millennials (42%), Gen X (31%), and Baby Boomers (14%). Rejection rates are highest in Germany and the Middle East (both 52%), then France (50%), ANZ (24%), the US (20%) and the UK (19%). The most common reasons for rejections include requests submitted outside the allowed return window, the product being classified as non-returnable, or the customer's previous returns history.

About one-third (31%) say defective or damaged products are their main reason for returning an item, with incorrect size or fit now accounting for 27%, down significantly from 75% in 2024.

Sustainability and environmental concerns

Environmental issues around product returns are increasingly shaping consumer behaviour. The survey reports that 65% of respondents are somewhat or very concerned about the environmental impact of returns, up from 55% last year. Middle Eastern (75%), French (73%), and German (69%) respondents report the highest concern.

Seven out of ten consumers (71%) indicate that they would avoid completing a product return if they knew the item would end up in landfill. Many would instead prefer to use eco-friendly disposal methods, resell the item, donate it to charity, or give it to friends or family.

Middle Eastern consumers (31%) are most likely to pursue an eco-friendly disposal option, compared to 27% in Germany, 26% in France, 19% in ANZ, 18% in the UK, and 16% in the US. Consumers in ANZ (25%) are especially likely to try reselling items, alongside the UK and US (both 24%).

"These results demonstrate that consumers value the ability to easily return items and, when possible, prioritise retailers that offer convenience and sustainable returns options," Robinson added. "Retailers around the world have an opportunity to deliver a better, more sustainable returns journey for consumers. By leveraging AI-driven solutions, retailers can better track returns data and trends, allowing them to move away from a one-size-fits-all approach to automated decisioning that implements the ideal returns journey for each return based on value. This enables retailers to achieve the perfect balance between cost, customer experience, and sustainability.

"Blue Yonder continues to invest in the best technology to support our customers as they look to convert returns into valuable inventory. We recently acquired Optoro to enhance our warehouse and in-store returns processing capabilities, allowing us to offer a robust, comprehensive returns management solution so our customers can streamline their operations for greater efficiency, waste reduction, and visibility."