Returns are rising – here’s why
Consumers are returning purchases at growing rates, with a few key drivers.
Analysis of 10 million transactions from agentic post-purchase platform Seel indicates that returns in general are increasing on a year-over-year basis. During the November-December holiday shopping season, return activity increases 16%. (During the November-December holiday shopping season, return activity typically increases 16%.)
Looking at year-over-year data, the inaugural Seel 2025 Returns and Refunds Report indicates the main reasons for returns during the year were the result of quality and reconsideration, with defective item returns rising 14% and change of mind returns climbing 9% in 2025. Defective item returns were especially prevalent in the computers and electronics category, soaring 164% year over year.
In one bright spot, overall returns resulting from late deliveries dropped 10% from 2024. But delivery issues drove returns in the fashion and accessories category, including sharp increases in late deliveries (124% increase year over year) and missing packages (42% rise year over year).
[READ MORE: Leading consumer delivery issues include…]
In the consumer electronics category, Seel data indicates the biggest spike in returns came from product performance issues, where defective item returns climbed 33% year over year, while undelivered items rose 13% year over year. However, consumer electronics also saw a 45% drop in late deliveries.
According to Seel, product category trends show that returns are being driven by different pressures in each category.
Other findings
- Nearly one-third of surveyed consumers return at least one item a year, with a smaller contingent returning multiple items across categories.
- Three-in-four (74%) surveyed shoppers say they would not make a purchase without a return option.
- Secondhand return rates remain significantly higher than new items, with resale items returned 140% more often on Seel’s platform.
- The average returned item falls in the $100-$200 range.
- There has been a 50% increase in shoppers selecting purchase protection for items costing $50 and above.
"Our goal with this report is to shed light on what retailers are really facing and what shoppers are experiencing during the busiest weeks of the year," said Laura Huddle, chief revenue officer at Seel. "Between recession fears, job uncertainty, increased buyer’s remorse, and growing trends like ‘try before you buy,’ we’re seeing shoppers be more thoughtful and take extra time thinking through purchases."
