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HomeMarket TrendsHow Brands Can Reduce Returns and Refunds in 2025

How Brands Can Reduce Returns and Refunds in 2025

A new survey from Akeneo provides critical insights into consumer return behavior and offers actionable advice on reducing refunds to boost profitability.

In today’s fast-paced e-commerce environment, returns can significantly impact your bottom line and customer loyalty.

For this reason, Akeneo—a leader in Product Information Management (PIM) solutions—surveyed 1,000 consumers aged 18 and older in January 2025 to understand recent holiday return behavior.

Here are the key findings:

65% of Consumers Made Holiday Returns

This survey reveals that 65% of consumers returned or exchanged a holiday purchase this year. Return rates are clearly a major concern for retailers, impacting everything from inventory management to customer satisfaction.

Accurate Product Information is Key

• 62% of consumers believe that providing more accurate product information upfront would reduce their likelihood of making a return.

• 59% admitted they returned an item because the online product description was misleading or inaccurate.

These statistics highlight the need for transparency and precision in your product listings.

“Consumers expect detailed and accurate product information online, no matter where they are shopping. Brands that have invested in a strong product experience can reduce the number of returns – positively impacting the bottom line while increasing customer loyalty and satisfaction by ensuring customers’ expectations are met”- Romain Fouache, Chief Executive Officer at Akeneo.

Sustainability Matters

The survey also uncovers an important environmental angle:

65% of consumers prefer to return items in-store rather than by shipping them back, a choice that minimizes additional transportation and supports sustainability.

68% of respondents are aware of the environmental impact of returns, and 39% said this awareness influences their decision to make a return or exchange.

• Additionally, 44% of consumers stated that knowing a brand’s return process is ethical and sustainable affects their decision to shop there.

These insights underscore that today’s consumers value sustainability, making your returns process a key component of your brand’s eco-friendly strategy.

“Sustainability continues to be top of mind for customers, and as brands continue to focus their efforts on improving their sustainability efforts, reducing the number of returns is essential”-  Romain Fouache, Chief Executive Officer at Akeneo.

Generational Insights on Return Behavior

Different age groups exhibit varying behaviors when it comes to returns

• Millennials and Gen-Z:
These groups are most likely to purchase multiple sizes with the intention of returning one or more, reflecting a trial-and-error approach to finding the perfect fit.

• Boomers and Gen-X:
With 38% and 35% respectively, these generations are less aware of the environmental impact of returns and exchanges. However, half of Gen-Z and 46% of millennials are not only aware but also factor these impacts into their purchasing decisions.

Understanding these generational trends can help tailor your approach to product information and returns policies.

Actionable Takeaways for Retailers

1. Enhance Product Information:
Ensure that all product details—descriptions, images, sizing information, and customer reviews—are accurate and comprehensive. This minimizes the risk of returns due to misleading information.

2. Streamline the Return Process:
Since 65% of consumers prefer in-store returns, consider integrating your physical and digital experiences to offer a seamless, sustainable returns process.

3. Embrace Sustainability:
With a growing number of customers factoring environmental impact into their return decisions, implement and clearly communicate sustainable practices in your returns policy.

4. Cater to All Generations:
Tailor your product presentation and return policies to meet the diverse needs of your customer base, recognizing that younger shoppers might behave differently from older ones.

By aligning your product data strategy with these insights, you can enhance the overall shopping experience, reduce operational costs, and foster a stronger brand reputation.

For the full survey results, visit: www.akeneo.com

Nevena Kostic
Nevena Kostic
I’m Nevena Kostić, a retail industry professional with 20 years of experience in shopping center consultancy, leasing, and marketing. I share insights on retail and shopping center trends, which you can follow by subscribing to our free newsletter. For collaboration opportunities connect with me on LinkedIn or reach out via email below!

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