Complicated return processes cost retailers customers and revenue. This is the finding of the Returns Report 2025, prepared by Trusted Returns in collaboration with the market research institute OnePoll. The representative survey of 1,000 online shoppers shows that nearly one in three (30%) no longer shops—or only shops hesitantly—with retailers that have unclear and customer-unfriendly return policies. Only 26% of respondents make another purchase from the same online retailer without hesitation after completing a return and receiving a refund.

Online retail in transition – Significantly fewer returns in 2024

While 82% of respondents shop on marketplaces such as Zalando, Otto, or Amazon, social commerce via Instagram, TikTok, and similar platforms is also becoming more important (22%). This trend is particularly pronounced among younger consumers: one-third of 18–34-year-olds already use social media as their primary shopping channel—more than twice as often as those over 55. Technological innovations such as virtual try-ons are viewed somewhat positively (46%), though still with caution.

One clear trend is striking, however: the return rate has dropped significantly within one year. Only 46% of respondents have returned products at least once since June 2024—compared with 67% in the previous year. Possible reasons may include more conscious purchasing decisions by consumers or improved retail processes; however, which factors actually have the greatest impact will likely only become clear in the coming years. For retailers, this means that fewer returns can reduce costs, but this should not obscure the fact that customers still have high expectations for a simple and seamless returns process.

Returns: Fast, but unimaginative

The majority of customers who return goods are generally satisfied with how returns are handled (57%), and 76% send items back within a few days. Nevertheless, nearly two-thirds (65%) are familiar only with the standard option of “return for refund.” Fifty-eight percent would like additional options—from exchanges and vouchers to repair services. More than half (55%) also call for greater transparency throughout the entire returns process. Notably, women significantly more often express a desire for alternative return options (63% vs. 53%), while men are somewhat more likely to be satisfied with the standard options.

Mistakes cost customers—and trust

Problems during the return process have immediate negative consequences for the respective online retailer: 37% of respondents switch to another provider after a poor returns experience. The willingness to switch is particularly high among younger consumers—almost one in two under 35 would no longer order from the same retailer after a negative experience. By contrast, online shoppers over 55 are more forgiving and remain loyal to their shops: 70% continue to order from their trusted online platform despite unclear or cumbersome return policies. For retailers, a customer-friendly returns policy is therefore becoming a forward-looking differentiator. What is already becoming clear today: those who fail to address the needs of younger customers now will lack loyal repeat customers in the future.

“Returns are not an annoying add-on, but a key moment in the customer journey. Those who act flexibly, transparently, and customer-oriented at this stage create sustainable competitive advantages,” says Artjom Bruch, CEO of Trusted Returns.

Incentives for covering return costs

Of particular interest to retailers: 37% of customers are willing to bear potential return costs themselves—if they receive added value in return. This may include alternative service options or faster processing. It is also notable that willingness to pay is especially strong among younger customers—around 10 percentage points higher than the overall average.

Conclusion for retail

The Returns Report 2025 shows that customer loyalty is not determined only at the point of purchase, but especially in the process afterward if a return occurs. Retailers that simplify processes, create transparency, and offer alternatives secure long-term loyalty—and market share.