The 2024 holiday season highlights significant challenges in retail returns, driven by the $890 billion returns problem, which accounts for 16.9% of all U.S. consumer sales. The growth of e-commerce has amplified the complexity, with issues such as inaccurate sizing, unclear return policies, and the rising cost of reverse logistics. Retailers also face increased pressure to manage consumer expectations for seamless returns while mitigating fraud, such as wardrobing and organized scams. Additionally, smaller retailers struggle with limited resources to handle returns efficiently, making it difficult to compete with larger players. Balancing profitability, sustainability, and customer satisfaction remains a critical challenge for retailers navigating this season.
