Holiday Returns 2025: Why Shoppers Are Sending Back Gifts in Record Numbers
- Retailers on average expect about 16% of their 2025 sales to be returned, according to survey data, underscoring the scale of the post-holiday send-back season.
- Returns typically surge in the final days of December, with Adobe Analytics data indicating this year’s spike may be even stronger than usual.
Key Takeaways
Holiday Returns 2025: Why Gift Send-Backs Are Surging Again
Gather up the unwanted socks and accessories it’s officially return season.
Returns typically spike in the final days of December, and Adobe Analytics data suggests this year’s surge may be even stronger. So far, returns are running about 2.5% lower than mid-season 2024, based on millions of online transactions. That doesn’t necessarily mean shoppers are choosing better gifts it’s more likely they’re just slower to send back unwanted items.
Schorr Packaging calls returns “practically a holiday tradition.” Surveys show half of shoppers return gifts within a week, while another quarter do so within two to three weeks, underscoring how ingrained the practice has become.
Shoppers have become used to generous, flexible return policies since the pandemic, but retailers are starting to tighten the rules. Some merchants now require extra effort or added costs for returns, making the process less convenient. As a result, many Americans are opting for in-store returns to avoid the perceived hassle of mailing items back or using third-party drop-off sites.
Holiday Returns 2025: The Hidden Costs Behind Sending Gifts Back
The surge in online shopping and flexible return policies introduced during the pandemic have fueled higher return rates. According to the National Retail Federation and Happy Returns, companies expect about 16% of 2025 sales to be returned slightly lower than last year but double the 8% rate seen in 2019.
Despite the convenience of e-commerce, many Americans still prefer the traditional route: bringing unwanted items back to stores rather than mailing them or using drop-off sites, Schorr Packaging reports.
For retailers, returns are costly often amounting to 60% of an item’s value, says Simone Peinkofer of Michigan State University. Expenses include labor to inspect and restock items or selling them off to liquidators and discount retailers. Beyond financial strain, returns also carry an environmental toll, with billions of pounds of packaging and products ending up in landfills.
Return Fees on the Rise: What Shoppers Should Know
Retailers are increasingly charging customers to process returns, a shift that’s reshaping the post-holiday shopping experience.
- Kohl’s (KSS) applies a 15% restocking fee on certain large items.
- Macy’s (M) and Urban Outfitters (URBN) impose shipping or other fees for items returned through the mail.
These fees help retailers offset costs and discourage fraudulent returns, which the National Retail Federation (NRF) estimates account for about 9% of all returns. In fact, more than 7 in 10 retailers now charge for at least one type of return, up from 66% in 2024.
However, the move is unpopular with shoppers. While some retailers report benefits such as lower return volumes or more exchanges, many also acknowledge a rise in customer complaints, signaling dissatisfaction with the overall return experience.
The Bottom Line
Holiday returns have become a costly tradition for retailers, with nearly one in six purchases sent back. While flexible policies make it easier for shoppers, rising fees and environmental waste highlight the growing impact of post-holiday returns. Smart buying decisions and awareness of return costs matter more than ever.
