Retail Returns Increased to $761 Billion in 2021 as a Result of Overall Sales Growth

WASHINGTON – Retailers expect more than $761 billion in merchandise sold last year to be returned by consumers, according to a report released today by the National Retail Federation and Appriss Retail. This accounts for an average of 16.6 percent of total U.S. retail sales, which soared to $4.583 trillion in 2021. 

“As total retail sales continue to accelerate from sustained consumer demand during the pandemic, it is no surprise that the overall rate of returns has also been impacted."

NRF Vice President of Research Development and Industry Analysis Mark Mathews

“As total retail sales continue to accelerate from sustained consumer demand during the pandemic, it is no surprise that the overall rate of returns has also been impacted,” said Mark Mathews, NRF’s vice president of research development and industry analysis. “While retailers have indicated that they are seeing an increase in items returned to stores and online, the upside is that it also provides them with additional opportunities to connect further with customers and provide a positive experience.” 

The 2021 total rate of returns (16.6 percent) is up from 10.6 percent during 2020, but online returns in 2021 are in line with recent years at an average of 20.8 percent. According to NRF, online sales accounted for $1.050 trillion of total U.S. retail sales last year. Approximately $218 billion of online purchases were returned, with $23.2 billion (10.6 percent) deemed fraudulent.   

According to the survey, for every $1 billion in sales, the average retailer incurs $166 million in merchandise returns. It also found that for every $100 in returned merchandise accepted, retailers lose $10.30 to return fraud. The categories with the highest return rates were similar to 2020 metrics: auto parts (19.4 percent), apparel (12.2 percent) and home improvement and housewares (tied at 11.5 percent). The most common types of payment used during the original purchase that led to a return were credit cards (22.78 percent), cash (12.69 percent) and debit cards (7.04 percent).   

“Retailers must rethink returns as a key part of their business strategy,” said Steve Prebble, CEO of Appriss Retail. “Retail is dealing with an influx of returned items. Now is the time to stop thinking of returns as a cost of doing business and begin to view them as a time to truly engage with your consumers.” 

Earlier this month, NRF reported that retail sales during the November - December holiday season reached a total $887 billion, exceeding its forecast of up to 11.5 percent growth. On average, retailers expect 17.8 percent, or $158 billion, of merchandise sold during the holiday timeframe to be returned. 

The survey of 57 retailers was conducted by NRF and Appriss Retail Oct. 13 – Nov. 15, 2021. Click here to view the full survey results.  

About NRF 
The National Retail Federation, the world’s largest retail trade association, passionately advocates for the people, brands, policies and ideas that help retail thrive. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $3.9 trillion to annual GDP and supporting one in four U.S. jobs – 52 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies. nrf.com 

About Appriss Retail 
Appriss Retail, a division of Appriss Inc., provides artificial intelligence-based solutions to help retailers protect margin, unlock sales, and cut shrink. With more than 20 years of retail data science expertise, the company’s Software-as-a-Service (SaaS) platform generates advanced analytical insights and real-time recommendations that help drive action throughout the organization, including operations, finance, marketing, and loss prevention. Its performance-improvement solutions yield measurable results with significant return on investment among retail store, ecommerce, and inventory functions. Appriss Retail serves a global base of leading specialty, apparel, department store, hard goods, big box, grocery, pharmacy, and hospitality businesses in more than 150,000 locations (brick and mortar and online) in 45 countries across six continents. For more information about Appriss Retail, visit https://apprisscommerce.com