In 2023, returns on online purchases in the United States amounted to nearly 248 billion U.S. dollars. That is an increase of about 16.4 percent compared to the previous year when the cost of e-commerce returns was approximately 213 billion U.S. dollars. The impact of free returns Numerous factors contribute to a shopper's decision to return items bought online, with varying preferences guiding their return process. Nonetheless, certain consumer preferences hold greater significance than others. In 2022, nearly 90 percent of United States consumers who returned an online order listed free returns as a one of their main e-commerce returns preference. The impact of free returns on consumer shopping behavior in the U.S. is considerable, with roughly four out of ten consumers indicating a strong likelihood of discontinuing purchases from a brand if it were to remove the option of free returns. Paying for returns: U.S. vs. EU The willingness of consumers to pay for e-commerce returns varies across countries. Despite resistance from many U.S. online shoppers, the North American country still boasts one of the largest shares of consumers willing to invest in online returns. Moreover, a 2022 survey conducted among consumers in the U.S. and selected European countries revealed that the percentage of shoppers anticipating free online returns was higher in Italy, Belgium, France, and Spain compared to the United States.

Spain was the country with the highest return rate of online retail purchases in 2023 according to aggregate data of the Mastercard Economic Institute. In 2023, Spaniards returned a quarter of e-commerce retail purchases, while Germans returned over 20 percent, more than doubling their return rate from 2019.

In Europe, clothing items had the highest fashion return rates in 2022, a study revealed. About 54 percent of dress purchases got returned, while skirts followed with roughly 47 percent. Being a popular category among online shoppers, shoewear reached significant online return rates, too. Over 45 percent of backless slippers orders were sent back in the considered year.

When asked about "Most returned online purchases by category", most U.S. respondents pick "Clothing" as an answer. 24 percent did so in our online survey in 2024. Looking to gain valuable insights about customers of online shops across the globe? Check out our

In Europe, German-speaking countries registered the highest online return rates of fashion purchases in 2022. A study monitoring fashion shopping on leading marketplaces showed that nearly 45 percent of fashion orders got returned by consumers in Switzerland. Germany and Austria followed with 44 and 36 percent, respectively.

From 2023 to 2024 the share of returned clothing items purchased online slightly increased by 0.2 percentage points. By 2027, the online return rate of clothing orders is expected to reach 8.9 percent.

The global e-commerce returns management software market is experiencing robust growth, driven by the escalating volume of online returns and the increasing need for efficient and cost-effective return processes. The market size in 2025 is estimated at $2.5 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This significant expansion is fueled by several key factors. Firstly, the rising adoption of e-commerce across diverse demographics necessitates sophisticated returns management solutions to mitigate losses and enhance customer satisfaction. Secondly, the increasing complexity of supply chains and the geographical dispersion of both customers and fulfillment centers necessitate automated, streamlined return processes. Furthermore, the growing demand for omnichannel returns experiences, where customers can return items through multiple channels (e.g., online, in-store), is boosting the adoption of advanced returns management software. Finally, the integration of artificial intelligence (AI) and machine learning (ML) into these systems is improving efficiency, accuracy, and predictive capabilities, further fueling market growth. The market segmentation reveals strong growth in cloud-based solutions due to their scalability, cost-effectiveness, and accessibility. The B2C segment dominates, reflecting the sheer volume of consumer returns. However, the B2B segment is also showing promising growth, particularly amongst larger businesses seeking enhanced supply chain visibility and control over returns. While the market faces challenges such as integration complexities and the initial investment costs associated with software implementation, the long-term benefits in terms of cost savings, improved customer loyalty, and enhanced operational efficiency are driving widespread adoption. The competitive landscape is characterized by a mix of established players and emerging startups, offering a diverse range of solutions tailored to specific business needs and industry verticals. The continued expansion of e-commerce, coupled with technological advancements, ensures a positive outlook for the returns management software market in the coming years.

In 2024, next to an add-to-cart rate of 9.3%, a cart abandonment rate of 72.8%, and a conversion rate of 2.5%, the eCommerce Benchmark KPIs in Japan also consist of an AOV of US$116.7, a discount rate of 10.3%, and a return rate of 7.4%.

In 2022, the rate of fashion item-related returns was almost 34 percent in Germany. This was higher compared to rest of Europe where the rate was around 19 percent. Furthermore, the fashion category had by far the highest rate of returns compared with other categories both in Germany and Europe.

In the United Kingdom, nearly three in four online shoppers consider return fees to be a crucial factor in their shopping decisions. In 2023, 74 percent of online shoppers taking part in a survey stated that return fees would make them less likely to shop with a retailer. Return fees might be expensive for cross-border retailers based in the EU, as they now charge UK consumers higher shipping and return costs due to Brexit trade conditions.

Cross-border e-commerce in the UK

In the UK, cross-border e-commerce represents less than 20 percent of the entire B2C online market and has remained quite stable since 2019, except for 2020. Contrary to what geographical location might suggest, European countries have a minor role in the UK cross-border market, which is dominated by China and the United States, leaving Germany in the third place.

Chinese presence in the UK market

Chinese players do not just dominate cross-border e-commerce, they are key players in the UK online retail ecosystem. In 2023, Temu, Alibaba, and Aliexpress were among the five most downloaded marketplace apps in the UK In some cases, the retention rates equaled those of established and domestic retailers. Over eight in ten UK consumers would purchase again from fast-fashion e-commerce Shein, surpassing the share of loyal customers of ASOS and Zalando.

The return order volume for purchases made online was at 15.8 percent in 2022 in India. This was a decrease as compared to the previous year when the return volume stood at over 17 percent. Moreover, the majority of the returns belonged to the fashion segment under apparel and footwear.

In 2024, next to an add-to-cart rate of 12.5%, a cart abandonment rate of 82.2%, and a conversion rate of 2.2%, the eCommerce Benchmark KPIs for Fashion in the UAE also consist of an AOV of US$127.9, a discount rate of 12.5%, and a return rate of 11.1%.

In 2024, next to an add-to-cart rate of 9%, a cart abandonment rate of 84.8%, and a conversion rate of 1.4%, the eCommerce Benchmark KPIs in Indonesia also consist of an AOV of US$77.8, a discount rate of 15%, and a return rate of 5.2%.

In 2024, next to an add-to-cart rate of 8.8%, a cart abandonment rate of 79.8%, and a conversion rate of 1.8%, the eCommerce Benchmark KPIs in Brazil also consist of an AOV of US$96.9, a discount rate of 14.2%, and a return rate of 10.7%.

Retail purchase returns, whether online or in-store, are a growing challenge for the retail industry, resulting in high costs. In 2023, the total value of online shopping returns was an estimated 248 billion U.S. dollars. With the continuous surge in online sales, the ramifications on in-store returns are also on the rise. While 17.6 percent of online transactions were returned via online channels, nearly half of all in-store returns stemmed from online purchases.

Discover the latest eCommerce statistics in Taiwan for 2025, including store count by category and platform, estimated sales amount by platform and category, products sold by platform and category, and total app spend by platform and category. Gain valuable insights into the retail landscape in Taiwan, uncovering the distribution of stores across categories and platforms.

In 2024, next to an add-to-cart rate of 10.6%, a cart abandonment rate of 73.1%, and a conversion rate of 2.8%, the eCommerce Benchmark KPIs in Canada also consist of an AOV of US$127.8, a discount rate of 11.2%, and a return rate of 9.4%.

In 2024, next to an add-to-cart rate of 9.1%, a cart abandonment rate of 82.6%, and a conversion rate of 1.6%, the eCommerce Benchmark KPIs in Singapore also consist of an AOV of US$157.4, a discount rate of 10.5%, and a return rate of 6.7%.

In 2023, about 14.5 percent of (in-store and online) retail purchases in the United States resulted in returns. That compares to a decrease from the previous year. The e-commerce boom resulting from the COVID-19 pandemic also led to record return rates among U.S. shoppers, peaking in 2021, when they made up 16.6 percent of all purchases.

In 2024, next to an add-to-cart rate of 10.9%, a cart abandonment rate of 75.3%, and a conversion rate of 2.7%, the eCommerce Benchmark KPIs in Portugal also consist of an AOV of US$86.6, a discount rate of 9.3%, and a return rate of 7.6%.