Retailers Tweak Return Policies Ahead of Q4 as Returns Surge Looms
As the year draws to a close and e-commerce sales hit new highs, brands are rapidly updating their return policies to handle a looming uptick in holiday returns. Their goal is to win over shoppers who look for easy, cost-effective return options.
Flexible Policies Take Center Stage for the Holidays
Holiday shopping periods have always brought an influx of returns, but an even stronger response from brands is happening this year. Findings from a Happy Returns and the National Retail Federation in 2025 joint study reveal that about 17% of holiday buys are set to be returned by customers. Retailers, aware that gift-giving and travel can extend well beyond December, are lengthening or expanding the traditional 30-day window. As Joe Vancena, VP of marketing at Loop, points out, there’s a noticeable trend of retailers implementing extended, time-limited return windows to accommodate both gift givers and recipients. Many policies now include waived fees on returns and exchanges during this period.
The rationale is clear. According to Loop’s recent survey, 58% of shoppers have chosen not to return to a brand due to a return policy that didn’t work for them, and a striking 92% say return fees are a major shopping consideration. Vancena states, “If customers take issue with your return terms, a large number simply walk away. During the holidays, adaptability counts—whether that’s in the form of extended windows, free exchanges, or no-cost returns.”
Balancing Expenses, Loyalty, and Growth
While discussions within companies often focus on the financial implications of return fee waivers, experts such as Vancena believe the advantages—ranging from higher sales conversions to broader customer reach—far outweigh any increased costs. “The revenue boost and expansion of your shopper base will typically more than offset the expenses incurred from those extra returns,” he asserts.
Brands are also reconsidering how they communicate these changes, with many trialing digital ads promoting their improved policies as early as August. By analyzing the performance between ads that highlight free return options and those that do not, brands gain clear insights into shopper preferences. Another tactic gaining traction is placing up-to-date return policy information next to the ‘add to cart’ button—a method that, according to retailers, is “almost unanimously” credited with lifting sales.
Returns: The Untapped Potential for Sales
More than a service, the return or exchange has become a fresh marketing opportunity. Brands now use the online return and exchange process to suggest new purchases, all at little extra marketing expense. New customers exchanging items might receive special offers when adding more products to their order.
Loop’s insights illustrate the value of this shift. Beauty company Jones Road, for example, gained an extra $197,000 in new revenue thanks to shoppers who browsed and bought during their return exchanges, on top of retaining $3.1 million in sales by incentivizing product swaps over straight returns.
In Vancena’s words, “Brands at the forefront are transforming the return process into an upsell opportunity—and turning what was once considered a loss into a significant source of growth.”
Industry Headlines: Tariffs, Events, and Innovations
On the international trade front, Canada will implement new retaliatory tariffs on September 8, impacting more than 700 U.S. product categories with tariffs between 15-50%. These measures counteract recent U.S. tariffs that have reached 50% on around $20 billion of Canadian goods. Affected sectors span steel, dairy, electronics, paper products, appliances, farming equipment, and more.
The effect these tariffs could have on North American logistics and manufacturing is yet to be seen, especially given the deeply interwoven trade relationship between the two countries. The World Economic Forum comments that the global economy’s ability to absorb another shock remains in question.
New Retail Strategies and Expansions
Turning to innovation, Quince—a rising e-commerce brand—attracted overflowing crowds to its first San Francisco sample sale, selling out linens, towels, and cashmere in six hours as shoppers lined up across four city blocks. Dakota Kate Isaacs, Quince’s head of brand strategy, said the event exceeded expectations and highlighted the brand’s appeal across varied merchandise categories.
At the same time, Simon Property Group is upping its digital game by introducing the Simon Media Network. This retail-media solution merges on-site advertising with advanced audience targeting, helping advertisers measure their efforts through data on actual mall traffic and consumer behavior.
Recent Industry News
- Pressure in China helps convince Volkswagen it’s time to change – Associated Press
- Nestlé Purina PetCare opens $550M pet food plant in Ohio – Food Engineering
- David Protein maker valued at $2.25 billion in new funding deal – Bloomberg
With the fourth quarter on the horizon, brands are sharpening their return strategies, investing in standout customer and logistics experiences, and embracing new retail-media technologies—all hallmarks of the fast-paced changes in global retail and supply chain arenas.