Returns have become one of the most expensive and persistent challenges in eCommerce. According to the 2025 Retail Returns Landscape from the NRF and Happy Returns, US retailers expect 15.8% of annual sales to be returned this year, totaling $849.9 billion in merchandise. Despite operational improvements, the return rate has barely moved from last year’s 16.9%.
At the same time, consumers’ expectations for free and easy returns consistently rise:
- 82% say free returns are a significant factor in deciding where to shop.
- 76% prefer return options that offer an instant refund or exchange.
Free, easy returns have become a core part of the value proposition for online retail. Yet, retailers struggle to make free return programs economically feasible.
Reinventing return policies
According to the 2025 Returns Landscape study, retailers’ top priorities for 2026 are increasing online sales and reducing return rates. Many acknowledge that the current return landscape is unsustainable. They are faced with balancing customer expectations and the need to grow online channels against the rising operational costs associated with returns, as well as pressures from external factors like tariffs.
These pressures are not expected to ease anytime soon; as a result, 64% of retailers stated that updating their returns process within the next six months is a priority.
This aligns with Forrester’s prediction that 2026 will mark the end of generous eCommerce return policies. Retailers will increasingly turn to machine learning to tier return benefits based on profitability, while tightening policies for high-cost or high-risk behavior.
But while policy changes are inevitable, they can’t solve the problem alone. The key is reducing returns before they happen.
Reducing returns starts with better purchase decisions
Most returns stem from uncertainty:
- Did I pick the right size?
- Will this look the way I expect?
- Is this the version others recommend?
- Does the product actually perform as promised
- Is this a popular choice?
To reduce uncertainty (and reduce returns), retailers need tools to help shoppers choose the right product the first time. This is where conversion messaging, such as social proof and attribute messaging, can help.
How Social Proof helps shoppers choose with confidence and Return Less
Social proof not only boosts conversion rates but also improves decision accuracy, reducing post-purchase surprises and the risk of costly returns.
1. Guide shoppers to products with a strong track record
Messages like “Top-rated by customers like you” or “Most purchased in the last 30 days” help guide buyers toward reliable, lower-return items.
2. Offer clarity on fit, sizing and expectations
Dynamic messaging informed by review and returns data — e.g., “92% say this fits true to size” can dramatically reduce size-related returns.
3. Highlight successful purchases from similar shoppers
Social proof can surface products that people with similar preferences have kept and loved.
4. Use attribute messaging to set accurate expectations
Insights such as “Soft, lightweight fabric — mentioned in 450 reviews” help minimize mismatched expectations that cause returns.
5. Reassure unsure shoppers at the moment of decision
Real-time demand signals, e.g., “1,800 people bought this in the last week”, give shoppers confidence that they’re choosing well-liked, high-performing items.
Retailers can also use Attribute Messaging combined with social proof such as “Gift Guide Pick 206 bough in the last day” to reassure shoppers that they are making smart shopping decisions during peak gifting periods.
Smarter returns strategies start with smarter purchase decisions
Returns in eCommerce are inevitable, but there are ways to tackle high return rates upfront by optimizing the overall digital experience and helping shoppers make more informed purchase decisions.
Reducing returns begins long before an item hits the warehouse.
Conversion messaging, including social proof and attribute messaging help:
- Improve shopper confidence
- Reduce fit and expectation-related returns
- Guide buyers toward products with lower return risk
- Accelerate online growth without relying on “free returns” as a differentiator
In an environment where shoppers want greater flexibility, the most sustainable path forward is to help consumers make informed, confident decisions at the point of purchase.
Want to learn how AI-powered conversion messaging solutions social proof and attribute messaging and dynamic badging are optimizing conversion rate and reducing returns rates for retailers like Steve Madden, Bloomingdale’s and many more? Contact us today.
