According to a new report from the National Retail Federation and return management company Happy Returns, returned goods are projected to cost retailers $890 billion in 2024.

In 2023, returned goods cost retailers $743 billion.

"Ideally, I hope there is a world in which you can reduce the percent of returns," said the CEO of returns solution company Optoro, Amena Ali, according to NBC News. "The problem is not going to abate any time soon."

The report attributed the rise in returns to habits referred to as "bracketing," when shoppers order multiple sizes to return extras, and "wardrobing," returning items after one-time use.

These behaviors, according to the report, have surged in recent years, with nearly two-thirds of consumers admitting to bracketing and 69% engaging in wardrobing. Both practices contribute to rising return rates, which are expected to peak during the holiday season when returns are 17% higher than the annual average.

To combat the rate of returns, many retailers are tightening their policies. In 2023, 81% of U.S. retailers introduced stricter measures, such as shorter return windows and restocking fees, according to another Happy Returns report.

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