Retail returns the day after Christmas increased by more than 15% year-over-year in 2024, as consumer-friendly return policies continue to drive shopping decisions across the U.S.

According to data from returns operation platform Loop, the largest increase in returns came from cosmetics and personal care items, which saw a 36% year-over-year jump. Apparel made up roughly half of all merchant returns tracked by Loop, while increasing by 19% from 2023. Despite that, brands managed to retain 18.7% more revenue in 2024 from returns, thanks in large part to consumers accepting gift cards rather than cash refunds.

The National Retail Federation (NRF) estimates total returns in the U.S. to reach $890 billion by the end of 2024, while retailers expect nearly 17% of their sales for the year to be returned, up from the NRF's historical average of 13% between 2019 and 2022. Businesses also expect to see their return rates increase by another 17% in addition to the year's average over the course of the 2024 holiday season. 

In a survey of more than 2,000 U.S. consumers, more than three-quarters of consumers said they consider free returns a major factor when deciding where to shop, with 64% saying that they were more likely to shop with a retailer that offers printerless, box-free returns at nearby brick-and-mortar locations. Another 46% said that they had abandoned a purchase because the business didn't offer a convenient return method.