63% of US Shoppers Have Walked Away from a Retailer Over Its Returns Policy

Returns are no longer just a post-purchase issue — they’re increasingly shaping where Americans choose to shop in the first place. New research from ecommerce operations platform Loop, based on surveys of 1,000 US consumers and 200 retail decision-makers, found that 63% of shoppers have stopped shopping with a retailer or abandoned a purchase because of its returns policy. Nearly six in ten consumers (58%) regularly check returns policies before buying online, while 92% say return fees influence their shopping behavior. Retailers recognize some of the stakes: 65% say the returns experience significantly affects customer loyalty, and more than half worry that tightening their policies could drive customers away or spark public backlash. 

At the same time, retailers are grappling with growing returns fraud and abuse. Forty-four percent of consumers admit they have given a return reason that wasn’t entirely accurate, while 31% say they have substituted the original item with something else when making a return. Retailers report similar challenges, including false claims about damaged or missing items and customers returning different or damaged products. Yet fraud prevention remains relatively low-tech: half of retailers still rely on manual reviews, while just 19% use AI or machine learning-driven detection. The findings point to a growing balancing act for retailers: making returns convenient enough to protect customer loyalty while controlling the financial and operational costs of fraud and abuse. 

Why it matters: 

• The experience after checkout can influence whether customers come back, making returns part of the broader customer experience rather than simply an operational cost. 

• More restrictive policies may reduce fraud and costs, but they also risk discouraging legitimate shoppers and damaging customer relationships. 

• With 36% of US shoppers willing to pay a fee for a more premium returns experience, retailers have room to rethink returns as a potential retention and revenue strategy rather than simply a cost center. 

Learn more here.