Are you losing to returns?

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Rethinking E-Commerce Returns
Insights from Stacked Marketer

Free returns might feel like a customer-friendly move, but for retailers, the cost is stacking up fast. What once felt like a small price for conversion is now eating into profits at scale. Here's why the returns problem is bigger than ever—and what brands can do about it.

The State of E-Commerce Returns:

1️⃣ The Cost is Climbing: Returns in the U.S. retail market are expected to hit nearly $900B this year—triple what they were just a few years ago. The pandemic accelerated online shopping but also normalized a behavior known as bracketing: customers buying multiple sizes or colors, planning to return most of them.

2️⃣ Bracketing is the New Normal: Shoppers—especially Gen Z and Millennials—expect to try before they buy. Nearly 50% of customers admit to regular bracketing, and many retailers say it's getting worse. The result? Higher processing costs lost inventory time, and product waste (up to 25% of returned items are unsellable).

3️⃣ Charging Fees Comes at a Cost: Many brands are testing return fees to fight back. Around 40% say it helps reduce return abuse and offset losses—but it’s not without risk. Nearly half of merchants who added fees reported lower order values and even lost customers.

The Takeaway
Returns won’t disappear—but they can be managed. Focus on prevention over penalties:

• Add better product descriptions, sizing guides, and UGC
• Use bundles to increase value and reduce return likelihood
• If you charge fees, explain them clearly and keep them reasonable

Balancing cost control with customer experience is the key to long-term sustainability. Sometimes, stopping the loss is better than chasing the extra sale.

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