Product Returns Reach $890B in 2024 as Clothing Leads and Half of Americans Avoid Sending Items Back

The National Retail Federation and Happy Returns published a report that highlights the state of product returns, revealing key trends in consumer behavior. According to the report, 16.9% of the annual sales in 2024 in the US were returned to their respective sellers, while 20% of the online sales were returned. The report says that about $890 billion worth of products were returned by customers in 2024, especially considering how much it costs to process and return a product.

On the other hand, Statista Consumer Insights found that clothing was the most returned shopping item in 2024, with 25% of the respondents returning clothing parcels. It was followed by shoes (17%) and accessories (12%). 12% of the respondents also said that they returned food & beverage items to their sellers. This was found after surveying 9,778 US adults between April 2024 to March 2025.

Other returned items in 2024 by the US respondents included consumer electronics (10%), cosmetics & body care (9%), books and entertainment goods (9%), and furniture & household items (8%). 50% of the respondents of the survey also said that they didn't return any product in the last 12 months, while 7% said they haven't even made an online purchase in the last 12 months.


While returns are an inevitable part of retail, both consumers and businesses can benefit from greater transparency and proactive strategies. For shoppers, checking sizing guides, product reviews, and return policies can reduce unnecessary purchases. For brands, clearer product information, predictive sizing tools, and smoother return logistics can lower costs and enhance trust, while minimizing environmental impact.

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