Difficult returns lead to brand abandonment
If your customers have to jump through hoops to send back an item, they’ll take their business elsewhere. And fast. Manhattan Associates’ study makes it clear: 40% of customers will abandon a brand after a frustrating return. That’s almost half of your buyers gone, just because returning something was a hassle.
Returns are an emotional moment. No one enjoys sending something back. It means disappointment, extra effort, and uncertainty about when they’ll get their money back. If that process feels slow, confusing, or unfair, customers lose trust. And when trust disappears, so does loyalty.
Your returns process is a part of the customer experience, just like your checkout process or product quality. The brands that thrive are optimizing the post-purchase experience. If you’re making customers work too hard to send something back, you’re inadvertently making it easy for them to walk away.
Negative return experiences are shared widely
Bad news spreads fast. Worse, it sticks. When customers have a bad return experience, they won’t suffer in silence either, and will most likely talk. And thanks to social media, they talk loud. The study found that 31% of shoppers tell friends and family about a bad return, and 15% take to social media. That means every frustrating return is a potential PR nightmare.
Every interaction with your brand is marketing. If customers feel respected and valued—even when returning a product—they’ll remember it. If they feel ignored, frustrated, or cheated, they’ll tell everyone. And people trust other people more than they trust ads. A single tweet or review about a terrible return process can shape brand perception far beyond that one customer.
What’s the fix? Speed, clarity, and fairness. A smooth, transparent return process is a competitive advantage. It turns potential complaints into trust-building moments. Brands that get this right will build a reputation that attracts and retains customers.
Long refund wait times and confusing instructions create friction
No one likes waiting, especially when it’s for their own money. When a customer returns an item, they expect the refund to be quick and painless. If they’re left wondering when—or if—it’s coming, they get frustrated. And frustration turns into lost business. According to the study, 39% of customers cite long refund wait times as a major pain point.
The other big issue? Confusion. If a customer can’t easily figure out how to return something, they’ll assume the company is making it difficult on purpose. That’s a bad look. 33% of shoppers said unclear return instructions added to their frustration. That’s a third of your customer base potentially feeling tricked or misled.
Fast refunds and clear instructions signal respect. Customers who feel respected stick around. They spend more. They recommend your brand. The companies that dominate in eCommerce are the ones that remove friction at every stage. Returns are no exception.
Younger consumers are more likely to return items
Not all customers behave the same way, and that matters. Younger shoppers—especially those aged 18 to 34—return products at higher rates, particularly electronics and video games. That’s not random, and it reflects how they shop. This group is used to digital-first experiences, free shipping, and seamless transactions. If something doesn’t meet their expectations, they send it back without hesitation.
Older consumers, on the other hand, tend to be more selective with returns. They buy with more caution and avoid the hassle of sending things back. But one thing remains consistent across all age groups: clothing is one of the most returned categories. The reason? Sizing and fit issues. This means retailers selling fashion can’t afford to ignore return optimization—it’s a universal issue.
Understanding these differences is key to shaping a return policy that works for everyone. Younger buyers want speed and ease. Older shoppers want reassurance.
“If your return experience aligns with what each group expects, you retain customers and create brand advocates.”
Return costs influence purchase decisions and brand switching
Price matters, and not just at checkout. Customers will often evaluate the cost of returning a product. If there’s a return fee, 38% of shoppers will simply choose another brand. That’s a major shift in purchasing behavior, driven entirely by how returns are handled.
The focus here isn’t only on switching brands, it’s also on how people buy in the first place. The study found that 45% of customers become more cautious if there’s a return fee. That means they second-guess their purchases, buy less often, or avoid riskier categories altogether. If you’re a retailer, that’s a problem. Anything that slows down a customer’s decision-making process reduces conversions and revenue.
Older shoppers, in particular, are more sensitive to return fees than younger ones. This makes sense—they tend to be more deliberate with their purchases and expect greater flexibility when they do return something. The challenge for brands is clear: charge too much for returns, and you lose customers. Offer free returns on everything, and your margins take a hit.
The solution? Balance. The smartest companies use data to refine their policies—offering free returns on high-margin items, limiting return abuse, and using AI to predict and reduce return rates.
In-store returns are preferred for their speed and personal interaction
Despite the rise of eCommerce, brick-and-mortar stores still have a major advantage—immediacy. The study shows that 54% of shoppers prefer returning items in-store. Why? Because it’s fast. Customers don’t have to deal with printing labels, waiting for shipping, or wondering when their refund will arrive. They walk in, return the item, and get an answer on the spot.
But speed isn’t the only factor. In-store returns also come with human interaction. Customers get face-to-face service, which—if done well—can turn a frustrating return into a positive brand experience. A well-trained associate can resolve issues, offer exchanges, and even suggest alternative products. Done right, an in-store return is another sales opportunity.
For retailers, this means two things:
- First, in-store returns need to be seamless. That means clear policies, properly trained staff, and efficient processing.
- Second, online and in-store returns should feel connected. If a customer buys online but prefers to return in person, that should be easy. Retailers that blur the lines between digital and physical experiences win customer loyalty. Returns are no exception.
Emotional considerations are key in return experiences
People don’t like returning things. It means something went wrong. Maybe the product didn’t fit, didn’t work as expected, or wasn’t the right choice. That creates a mix of emotions—frustration, disappointment, even embarrassment. How a brand handles that moment matters.
Craig Summers, VP of Northern Europe & MEA at Manhattan Associates, put it well: “There’s more to returns than software and pound signs. Retailers need to consider the emotional aspect of returns.” That’s a big insight. Too often, companies focus on the operational side—how fast they can process a return, how much it costs—but forget the customer experience. A rigid or impersonal return process just amplifies negative feelings.
A return that feels smooth, respectful, and hassle-free prevents a lost customer and can actually strengthen loyalty. The brands that get this right make their policies feel customer-friendly, not like a punishment. Small details—like easy-to-understand instructions, proactive communication, and fast refunds—make a big difference.
“In an era where customer experience drives growth, returns shouldn’t feel like a necessary evil. They should feel like an extension of great service.”
Investment in technology and AI can improve return management
Returns are a logistical challenge, but they don’t have to be a headache. The solution? Technology. AI and automation are already transforming customer service, and returns are no different. Retailers that invest in smart return systems reduce costs and create a better experience for customers.
Reverse logistics—handling returns efficiently—is one of the biggest operational challenges in retail. The best companies are using AI-powered systems to optimize this process. These systems can predict return rates, automate approvals, and even detect fraudulent returns. They make it easier for customers to initiate a return and track their refund in real-time. The result? Less friction, fewer manual processes, and faster resolutions.
Craig Summers points out that AI-driven solutions, combined with strong reverse logistics, will define the future of returns. He’s right. Smart retailers need to do more than react to returns, they need to anticipate them. They use data to improve sizing recommendations, reduce avoidable returns, and streamline warehouse operations. The goal is to reduce the number of returns in the first place.
Key executive takeaways
- Streamline returns to retain customers: A negative returns process causes 40% of consumers to abandon a brand. Leaders should simplify and expedite returns to reinforce customer loyalty and protect revenue.
- Protect brand reputation: With 31% of shoppers sharing poor return experiences by word-of-mouth and 15% on social media, negative returns can quickly damage your brand image. Decision-makers must prioritize customer-friendly return policies to curb widespread dissatisfaction.
- Reevaluate return fee policies: When return fees are imposed, 38% of consumers switch brands and 45% become more cautious buyers. Executives should balance fee structures to avoid deterring purchases while preserving profit margins.
- Invest in AI-driven returns management: Leveraging technology like AI and robust reverse logistics can drastically reduce friction and speed up refund processes. Leaders should consider tech investments as a strategic tool to enhance operational efficiency and competitive advantage.
