September 12, 2025
Strict Returns Policies Risk Driving Away Shoppers, Survey Finds
A new 2025 Global Consumer Retail Returns Survey from Blue Yonder reveals that tightening retail return policies could cost retailers their most loyal customers. The study, which this year expanded beyond the U.S. to include consumers in Australia and New Zealand (ANZ), France, Germany, the Middle East, and the U.K., highlights a stark reality: 84% of shoppers worldwide would stop buying from their favourite retailers if stricter returns rules were put in place.
The survey shows that two-thirds of consumers (66%) hesitate to make purchases when return policies become more restrictive. Regional differences are striking, as shoppers in the Middle East are the most sensitive (75% deterred), followed by France (70%), Germany (65%), the U.K. (63%), ANZ (62%), and the U.S. (59%). Younger generations feel the pinch most: 74% of Millennials and 71% of Gen Z don’t feel like shopping under strict return conditions. Over half of respondents (53%) find such rules inconvenient or unfair, and a full one-third avoid retailers with especially rigid policies altogether.
“These findings highlight the negative consumer attitudes toward tighter returns policies, with a majority of consumers continuing to make decisions on where to shop based on these policies,” said Tim Robinson, senior vice president, commerce and returns, Blue Yonder. “Across generations and regions, consumers are consistent in believing that returns restrictions are unfair and inconvenient to them, underscoring their expectation for an easy and hassle-free process.”
A Point of Frustration
Charging fees for returns is the single most unpopular element of stricter return practices. Half of global shoppers (50%) cite return fees as the most frustrating part of the process, even if many still follow through despite the cost. But in markets like the U.S. (36%), U.K. (31%), and ANZ (31%), more consumers choose not to return an item at all if there are fees. Generational divides are also clear: Baby Boomers are the most resistant to paying return fees across most regions, except in ANZ, where Gen X tops the list at 38%.
During the pandemic, many retailers introduced “keep it” returns — letting shoppers keep unwanted items instead of sending them back. That trend appears to be fading. This year, only 60% of shoppers reported being told to keep a product, compared to 72% in 2024. Middle Eastern consumers were the most likely to experience this (73%), followed by France (68%) and Germany (67%). Clothing and accessories remain the category most often associated with “keep it” returns (38%), followed by electronics (18%) and groceries (13%).
Gen Z Leads in Rejected Returns
Not all return attempts are successful. More than one in three shoppers globally (36%) said a retailer rejected their return in the past year. Gen Z faces this most often, as nearly half (49%) had a return denied, followed by Millennials (42%), Gen X (31%), and Baby Boomers (14%). Germany and the Middle East stand out, with 52% of consumers in each market reporting rejected returns. The most common reasons: expired return windows (31%), non-returnable items (26%), and return histories flagged as excessive (20%).
Interestingly, the motivations for returns have shifted. Last year, 75% of returns were due to sizing or fit issues; in 2025, that dropped to just 27%. Instead, defective or damaged products have become the leading driver of returns (31%).
Sustainability Concerns on the Rise
Consumers are also thinking more critically about the environmental cost of returns. Nearly two-thirds (65%) now express concern about the ecological impact of sending items back, a sharp increase from 55% in 2024. This sentiment is especially strong in the Middle East (75%), France (73%), and Germany (69%).
Even more striking, 71% of shoppers say they would not return a product if they knew it would end up in a landfill. Instead, they prefer alternatives: 23% would seek eco-friendly disposal methods, 21% would try to resell the item, 16% would donate to charity, and 10% would pass it to family or friends. Regional differences highlight cultural nuances: Middle Eastern consumers are most likely to seek sustainable disposal options (31%), while ANZ shoppers lead in resale (25%), and U.K. and U.S. consumers show stronger interest in both resale and charitable donations.
Balancing financial efficiency with consumer expectations and sustainability concerns will be critical for retailers hoping to retain loyalty in an increasingly competitive landscape.
