Global online return volumes increased 18% in 2025
Online refund volumes and values surged last year as e-commerce continues to grow.
Annual refund volumes in the global retail sector increased 18.1 % in 2025 compared to the year prior, while refund value rose 12.7% year over year, according to global payment technology provider ACI’s annual "Global Ecommerce Report." Across all retail sectors, e-commerce transaction volumes grew 28.3% in 2025, while total transaction value increased 34.3% year over year.
The holiday season (November and December together) accounted for approximately 20% of all e-commerce refunds in 2025. December alone recorded a 2.89% refund rate, meaning nearly three out of every 100 purchases resulted in a return, compared with an average refund rate of 2.25% between January and October.
E-commerce payment volumes increased 28.3% in 2025, with transaction values up 34.3%, reflecting sustained consumer spending growth. While refund rates are rising more slowly than e-commerce transactions, ACI says the financial impact for retailers remains very high. Every $1 million in refunds typically translates into around $1.3 million in total costs once reverse logistics, inventory depreciation, payment processing fees and fraud-related overheads are accounted for.
“The sharp rise in refund volumes is exposing a growing pressure point for retailers – one that directly threatens margins, especially during peak periods and extended return windows,” said Adriana Iordan, head of merchant product management and payments intelligence at ACI Worldwide. “Retailers need smarter, AI‑driven controls that spot abuse in real time and adapt policies dynamically, without adding friction for genuine customers. By bringing fraud and refund management together, merchants can curb losses, protect profitability, and still deliver a customer seamless experience – even as refund volumes continue to climb.”
[READ MORE: FedEx: AI grows in importance for returns]
ACI’s Global Annual Ecommerce Report provides insight on the latest e-commerce trends based on an analysis of billions of global retail transactions processed in 2024 and 2025.
