As the dust settles on another eCommerce peak season, retailers are now shifting their focus from managing an influx of holiday orders to dealing with the inevitable wave of returns. With billions spent during peak periods, returns have become an increasingly critical factor in the eCommerce ecosystem. So, what trends shaped peak 2024, and what lessons can retailers take forward to better prepare for next year?

Global eCommerce sales in 2024 reached approximately $6.3 trillion, with projections to grow to $8.1 trillion by 2026. However, this surge in online spending also drove return rates higher, with an industry average of 20% to 30%. Managing these returns remains a costly challenge for retailers, with U.S. businesses alone losing an estimated $400 billion annually due to returns processing and logistics.

At the same time, retailers have been reassessing their return policies to offset rising costs. The availability of easy returns has declined from 97% in 2018 to 84% in 2024, and the number of retailers offering free returns has fallen from nearly half six years ago to under 20% today. Meanwhile, data from Invesp reveals that approximately 30% of all products ordered online are returned, compared to just 8.89% in physical s

tores. While 49% of retailers still offer free return shipping, 67% of shoppers now check the returns policy before making a purchase—highlighting 

the growing role of returns in customer decision-making.

Retailers are also prioritising sustainability in their returns strategies. The rise of sustainable returns solutions has led to more retailers partnering with reverse logistics startups to repair, resell, or recycle returned items rather than sending them to landfill. This shift is driven by both cost-saving initiatives and growing consumer demand for environmentally responsible shopping practices. By adopting smarter returns management strategies, retailers can minimise financial losses while reinforcing their commitment to sustainability.

Looking ahead, the lessons from 2024’s peak season are clear. Retailers should refine their return policies to balance customer expectations with cost efficiency. Striking the right balance—whether by introducing return fees, shortening return windows, or offering incentives for store credits—can help mitigate financial losses. Investing in technology, such as AI-driven return forecasting and automated returns processing, can further streamline operations.

Moreover, retailers should continue to embrace sustainability, not just as a cost-saving measure but as a key part of their brand identity. With customers becoming more eco-conscious, initiatives like refurbished product resale, carbon-neutral return shipping, and circular economy strategies will be crucial in differentiating brands in a crowded market. While peak 2024 is behind us, its impact will shape eCommerce strategies for years to come. The retailers that adapt now—optimising logistics, returns, and customer experience—will be the ones best positioned for success in future peak seasons.

Sources:
1. ReadyCloud
2. Mailmodo
3. ReadyCloud
4. The Atlantic
5. Invesp
6. The Guardian