Blue Yonder Survey: Stricter Returns Policies Deter Global Consumer Spending

Blue Yonder, the AI company for supply chain, released the results of its 2025 Global Consumer Retail Returns Survey, which reveals how increasingly tight retail returns policies are influencing consumer shopping behaviors across regions. The survey, now in its third year in the U.S., also polled consumers across Australia and New Zealand (ANZ), France, Germany, the Middle East, and the U.K. this year. A key finding was that 84% of global respondents will stop shopping at their favorite retailer if stricter returns policies are implemented.

“These findings highlight the negative consumer attitudes toward tighter returns policies, with a majority of consumers continuing to make decisions on where to shop based on these policies,” said Tim Robinson, senior vice president, commerce and returns, Blue Yonder. “Across generations and regions, consumers are consistent in believing that returns restrictions are unfair and inconvenient to them, underscoring their expectation for an easy and hassle-free process. With 9.5 billion pounds of returns ending up in landfills, it’s more important than ever that retailers develop customer-friendly processes, while more efficiently managing returns across omni-channel environments to reduce costs and unnecessary waste.”

Tighter Returns Deter Millennial and Gen Z Consumers

Two-thirds (66%) of all respondents are deterred from making a purchase due to more stringent returns policies. Across regions, consumers in the Middle East are most likely (75%) to be deterred from a purchase due to tighter returns restrictions, followed by France (70%), Germany (65%), the U.K. (63%), ANZ (62%) and the U.S. (59%). This trend is most notable among Millennials (74%) and Gen Z (71%), consistent with 74% and 76% in 2024, respectively.

Over half of global respondents (53%, consistent with 51% in 2024) believe tighter returns restrictions are inconvenient and unfair for consumers. For one-third (33%) of global consumers, some online retailers’ policies are strict enough to make them avoid shopping there altogether.

Returns Fees Are Unpopular with Consumers

Half (50%) of global respondents note that charging a fee to return a purchase is the most inconvenient element of tighter returns policies, but consumers are still generally willing to pay the price.

Consumers in the U.S. (36%) are most likely to not return an item if there is a fee associated, followed by the U.K. (31%), ANZ (31%), Middle East (12%), France (11%), and Germany (10%).

Generationally, Baby Boomers are the most likely to not return an item if there is a fee associated in the U.S. (45%), Middle East (44%), the U.K. (41%), Germany (17%), and France (16%), while in ANZ it is Gen X (38%).

The End of “Keep It” Returns?

“Keep it” returns became very common during the COVID-19 pandemic. But retailers may be shifting away from such policies. More than half (60%) of respondents have been told by a retailer to keep a product rather than undergo the returns process, down from 72% in 2024.

Globally, respondents in the Middle East (73%) are told most frequently to keep a product rather than return it, followed by France (68%), Germany (67%), the U.S. (55%), the U.K. (50%), and ANZ (47%).

Across regions, clothing and accessories (38%) is the top category associated with “keep it” policies, followed by electronics (18%) and grocery (13%).

Gen Z Consumers Face Returns Rejection

Over one-third (36%) of respondents stated they had a return rejected by a retailer within the last year. Generationally, Gen Z consumers (49%) are the most likely to have a return rejected, followed by Millennials (42%), Gen X (31%) and Baby Boomers (14%). Across regions, consumers in Germany (52%) and the Middle East (52%) are the most likely to have a return rejected, followed by France (50%), ANZ (24%), the U.S. (20%), and the U.K. (19%).

Across regions, the top three reasons for rejections by retailers were that the returns request fell outside of the return window (31%), the product was non-returnable (26%), and the consumer’s returns history precluded additional returns (20%).

Notably, 31% of global respondents noted that defective or damaged products were the main reason for requesting a return, followed by incorrect size or fit (27%, down significantly from 75% in 2024).

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Sustainability Concerns Around Returns are Growing Among Consumers

Consumers report increased dedication to sustainable returns habits, with almost two-thirds (65%, up from 55% in 2024) of consumers stating they are somewhat or very concerned about the environmental impact of returns.

Globally, Middle Eastern respondents note the highest amount (75%) of environmental concern of returning products, followed closely by France (73%), Germany (69%), the U.K. (61%), ANZ (57%), and the U.S. (56%).

Nearly three-quarters (71%) of global respondents said they would not complete the returns process if they knew their returned product might end up in a landfill. Respondents noted they would instead seek an alternative, eco-friendly disposal method (23%), attempt to resell the product (21%), donate the product to charity (16%), or give the product to friends and family (10%).

Across regions, Middle Eastern consumers (31%) are most likely to seek an alternative, eco-friendly disposal method, followed by Germany (27%), France (26%), ANZ (19%), the U.K. (18%), and the U.S. (16%). ANZ consumers (25%) are most likely to attempt to resell the product, followed by the U.K. (24%), the U.S. (24%), Germany (21%), France (20%), and the Middle East (16%).

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“These results demonstrate that consumers value the ability to easily return items and, when possible, prioritize retailers that offer convenience and sustainable returns options,” Robinson added. “Retailers around the world have an opportunity to deliver a better, more sustainable returns journey for consumers. By leveraging AI-driven solutions, retailers can better track returns data and trends, allowing them to move away from a one-size-fits-all approach to automated decisioning that implements the ideal returns journey for each return based on value. This enables retailers to achieve the perfect balance between cost, customer experience, and sustainability.

“Blue Yonder continues to invest in the best technology to support our customers as they look to convert returns into valuable inventory. We recently acquired Optoro to enhance our warehouse and in-store returns processing capabilities, allowing us to offer a robust, comprehensive returns management solution so our customers can streamline their operations for greater efficiency, waste reduction, and visibility.”