(Juneau Empire file photo)

(Juneau Empire file photo)

Opinion: Everyone pays the price of online shopping returns

Online shoppers in 2023 returned almost a quarter-trillion dollars in merchandise

  • By Larry Persily
  • Sunday, January 5, 2025 1:30am
  • Opinion

Americans are changing their minds in record numbers.

No, not about politics. People are pretty stubborn about that.

And don’t look for Americans to change their minds about what they dislike — taxes, inflation, roof leaks and car repairs — or what they like —sweets, free Wi-Fi and airline miles on their credit cards.

But take a look at the numbers and you’ll see that people change their minds about their online purchases more often than candidates change their positions on tough issues. Or, if you don’t want to pick on politicians, shoppers change their minds more often than young boys change their dirty socks without being asked.

Online shoppers in 2023 returned almost a quarter-trillion dollars in merchandise, more than double their 2019 returns, according to the National Retail Federation and software provider Appriss Retail.

Shoppers returned almost 18% of everything they received, according to the data.

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Those returns, totaling more than $247 billion, work out to almost $750 for every American, from infant to senior citizen. If you’re not carrying your share, it’s time to start ordering and returning more — don’t let your neighbors do all the work of unpacking, repacking and returning the wrong sizes, wrong colors and wrong styles. If you can’t keep up with the Joneses on money, at least keep up with them on returns.

An increasing number of online shoppers “bracket” their purchases, ordering several sizes or colors of the same item, then choosing which one they like best and returning the rejects.

Sometimes, an order arrives and it’s just not as perfect as it looked online.

And sometimes the shopper decides they don’t want or need the item after all.

Whatever the reason, they slap on the return label. Online retailers have made it easy for people to return purchases. Not because businesses like it but because surveys have found that online shoppers value two things above almost all else: Free shipping and hassle-free returns.

But, as you would expect, people are abusing the return policies, defrauding businesses in record numbers. Americans may change their mind about sweaters and shoes but many haven’t changed their minds that it’s OK to steal, as long as you don’t get caught.

More than $100 billion in merchandise was fraudulently returned in the U.S. in 2023, almost 14% of all returns, according to the National Retail Federation. That includes online and in-store purchases. Proving that Americans are not slackers, that’s more than double the level of dishonest returns in 2020, according to the industry trade group.

Half of Gen Z shoppers (I had to look it up, it’s people born between 1997 and 2012) returned clothes after they had worn them, and 41% of Gen Z shoppers returned an entirely different item than what they had ordered, according to a National Retail Federation survey released in December.

Scammers also have figured out they can complete the return form, send off the box and get a credit on their card as soon as the merchant receives the package — but before the company actually checks inside and takes stock of what was sent back. Scammers get credit for returning dirty clothes, or whatever else they think to stuff in the package.

All those returns — the honest and the fraudulent ones — cost merchants a lot of money, which drives up the prices they charge everyone.

It’s not fair, but it’s part of living in an online world. No returning that.

Larry Persily is the publisher of the Wrangell Sentinel.

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