As holiday shopping wraps up, retailers are heading into what logistics providers now call “returns season.” And for many companies, returns are no longer just a cost to manage. They have become a deciding factor in whether shoppers buy at all.
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New data from DHL shows just how big the shift has been. In some apparel categories, return rates now approach 90 percent. At the same time, 79 percent of shoppers say they will abandon an online purchase if a retailer’s return policy feels inconvenient.
Those numbers are changing how retailers and logistics providers think about reverse logistics. Instead of trying to eliminate returns, many companies are focusing on handling them more quickly and more cheaply.
Returns are especially high in fashion, where shoppers often order multiple sizes or colors and return most of them. This practice, known as “bracketing,” has pushed average return rates above 50 percent in many categories. According to IHL Group, women’s dresses are among the highest-return items.
When returns happen at that scale, the way products move back through the supply chain matters. DHL says its approach centers on shortening return trips and making it easier for customers to drop off packages. The company now operates about 170,000 drop-off and service points worldwide and uses more than 42,000 electric vehicles.
DHL has also rolled out labelless returns, which let shoppers send items back using only a QR code. The option cuts down on paper use and appeals to younger shoppers who expect simple, digital-first experiences.
The volume of returned goods is also creating what some experts describe as an “invisible value pool.” DHL estimates that $62.5 billion in potential global revenue is lost each year when returned items are treated as waste rather than resold.
In the United States alone, retail returns reached $890 billion in 2024, according to the National Retail Federation. That scale is forcing retailers to rethink how returned inventory moves through warehouses and back into resale channels.
Data from the DHL eCommerce Trends Report shows that convenience plays a major role in whether shoppers complete a purchase. Incorrect sizing and poor product quality are the most common reasons items come back, not shipping damage. And shoppers increasingly expect flexible return options that match how they live and shop.
“Returns are now an unavoidable expectation,” said Pablo Ciano, CEO of DHL eCommerce. “Data shows consumers want a ‘hybrid’ experience – buying online but returning via a dense network of parcel lockers or service points. We are meeting this demand with nearly 170,000 access points across Europe and digital solutions such as labelless returns, which are preferred by 32% of Gen Z shoppers. This not only adds convenience but directly supports our goal of shortening transport distances.”
To handle growing return volumes in North America, DHL has expanded its ReTurn Network following its acquisition of Inmar Supply Chain Solutions. The network now includes 11 sites that manage everything from e-commerce returns to excess inventory.
By placing returns and fulfillment operations close together, DHL says products can be inspected, restocked, and resold quickly, sometimes within the same day. That approach reduces how long inventory sits idle and helps keep products out of landfills.
“An efficient supply chain is the backbone of any successful return strategy,” added Hendrik Venter, CEO DHL Supply Chain EMEA. “Through the DHL ReTurn Network, we are not just moving boxes; we are remarketing products. Our programs batch goods for secondary markets, ensuring that, instead of entering landfills, products remain in the supply chain. This approach allows retailers to earn up to 90% of a product’s resale value, turning unproductive inventory back into revenue.”
