An increasing number of U.S. retailers are adopting "returnless" or "keep it" policies, particularly during the holiday season. Citing goTRG's 2023 Holiday Survey via Reuters, 59% of retailers are offering such policies for products where the cost of returns exceeds their value, up from 26% previously. This change is driven by the need to manage the high cost of processing returns, which typically cost around $30 per item and can drain profits due to transportation, sorting, and discounted reselling or disposal. This year, U.S. shoppers are expected to return $173 billion worth of holiday purchases, a 28% increase from last year. Retailers are revising policies to include options like offering store credit, charging for certain returns, and encouraging returns to physical stores. Walmart and Amazon are examples of companies that are testing new ways to manage return costs.
