Returns affect online purchase behavior – here’s how
New research reveals that return policies have a major impact on how consumers shop online, with many retailers unaware of their significance.
Almost two-in-three U.S. online shoppers have either stopped shopping with a retailer or abandoned a purchase because of its return policy. A new survey of 1,000 U.S. consumers and 200 U.S. retail executives from e-commerce operations platform Loop, “The Returns Revenue Gap,” also reveals that more than nine-in-10 (92%) consumer respondents say return fees affect how they shop online in some way and 46% say return fees make them more careful about what they buy.
[READ MORE: Here’s what online shoppers look for in delivery and returns]
In addition, roughly six-in-10 (58%) consumer respondents say they always or often check a retailer's returns policy before making an online purchase. Interestingly, 36% of consumer respondents would be willing to pay a fee for a premium online returns experience and 87% are willing to take a product exchange under the right circumstances.
The survey also reveals that duplicitous online return behavior is relatively common among consumers. More than four-in-10 (44%) consumer respondents admit they have previously provided a different reason for making an online return rather than the exact truth, while 31% admit to substituting the original item with something else when making a return.
In addition, three-in-10 consumer respondents say they have deliberately ordered multiple sizes or styles online with the intention of returning some, while one in three have returned an item that failed to meet expectations after briefly wearing it.
Retailers don’t fully grasp online return issues
Responses from surveyed retail executives indicate that retailers generally understand online returns pose problems but may not see the full scope of the situation. While 63% of consumer respondents have already stopped shopping with a brand or abandoned a purchase because of its returns policy, only 13% of US retailers identify customer churn as the biggest financial impact of returns.
Instead, lost revenue is the most commonly cited retailer concern about online returns, identified by 36% of retail respondents. Eight-in-10 (79%) retail respondents say fraud and abuse are problems, but only 19% use AI or machine learning fraud detection tools. Half of retail respondents use manual reviews to mitigate returns fraud.
However, 65% of retail respondents say the returns experience has a significant impact on customer loyalty. More than six-in-10 (62%) encounter false claims relating to items not being received or arriving damaged and 54% encounter customers returning different or damaged items.
Retailers are also concerned about alienating shoppers if they crack down too hard on return fraud. Fifty-seven percent are concerned about social media or public backlash if they tighten returns policies and 56% worry that toughening their returns policy could cause customers to leave the brand.
Independent research was conducted online by Sapio Research on behalf of Loop between May and June 2026. The study surveyed 1,000 U.S. consumers who had made an online return in the previous six months and 200 U.S. retail decision-makers responsible for e-commerce returns strategies.
