If your online returns feel higher than your shop returns, you’re not imagining it. This guide uses a US survey from the International Council of Shopping Centers (ICSC), reported by Retail Dive, to show the size of the gap, why it exists, and what a small seller can do. The survey is from 2024 and is US-based, so use it as a pointer rather than a Singapore benchmark.

Do return policies affect what shoppers buy?

Yes. 82% of consumers say a retailer’s return policy influences their buying decisions, according to the ICSC survey reported by Retail Dive in March 2024. The article doesn’t give the sample size, so treat the figure as a signal, not a precise measure.

In plain terms, a clear, fair return policy is part of the sale. Shoppers read it before they buy, especially online.

How do online and in-store return rates compare?

6.2% of in-store shoppers returned items, versus about one-third of online shoppers, according to the same ICSC survey. That’s roughly five times as many online shoppers sending something back.

The two groups behave differently because they buy differently. In a shop the customer holds the item before paying. Online, the item arrives first and the decision comes after.

How many online apparel shoppers return items?

22% of online apparel shoppers returned merchandise, according to the ICSC survey. That’s lower than the one-third figure for online shoppers overall, so apparel isn’t the only category driving returns.

Fit and feel matter, but they’re not the whole story. Any product that a customer can’t test before paying can come back.

Related: How to stop overselling across your website, Shopee and Lazada

Why do shoppers over-order online?

87% of surveyed shoppers who over-order do so to try items on at home and return what they don’t keep, according to the ICSC survey. They’re using your delivery as a fitting room.

That behaviour is rational for the shopper, but it’s costly for you. Every pair sent back is a unit that’s off the shelf until you receive, check and restock it.

87% of surveyed shoppers who over-order do so to try items on at home and return what they don’t keep (ICSC, via Retail Dive, 2024).

Would return fees push people back to stores?

Nearly 8 in 10 shoppers say online return fees would make them more likely to return items in stores, according to the ICSC survey. A fee changes where the return happens, not necessarily whether it happens.

If you have a shop, that’s an opening. A return in store lets you inspect the item on the spot and put it straight back on the shelf.

About one-third of online shoppers returned items, versus 6.2% of in-store shoppers, in an ICSC survey of return behaviour (ICSC, via Retail Dive, 2024).

Do retailers let customers keep returns?

Sometimes. 6 in 10 respondents say retailers gave them a full refund and told them to keep unwanted online purchases, according to the ICSC survey. That’s a cost-saving move when shipping a low-value item back costs more than the item is worth.

It’s a judgment call that depends on your margin. If you don’t track which refunds were kept, your stock records and your accounts will no longer agree.

How much fraud is in returns?

An estimated $10.40 per $100 in returns is fraudulent, and retailers received $743 billion in returns in the year before the 2024 article, according to National Retail Federation and Appriss Retail figures cited by Retail Dive. The article doesn’t state the year, so treat it as around 2023.

Fraud is a minority of returns, but it’s not small. Inspecting what comes back is cheaper than refunding something that was never sent.

An estimated $10.40 of every $100 in returns is fraudulent (National Retail Federation and Appriss Retail, via Retail Dive, 2024).

How large are returns now?

The National Retail Federation projected that shoppers returned $890 billion of merchandise in 2024, nearly 17% of retailers’ annual sales, as reported by Retail Dive in January 2026. That’s a US figure.

Returns have grown into a core cost of selling, not an edge case. A small seller who plans for them is ahead of one who treats each as a surprise.

Why is the in-store return rate so much lower?

The ICSC’s chief executive said the return rate for in-store purchases is three times less than for online purchases, largely because shoppers can see and try items first. Seeing the item, touching it and trying it on takes out most of the guesswork.

You can copy some of that online. Clear photos, accurate size information and honest descriptions help the shopper decide before the parcel arrives.

How do small retailers usually find out an item is gone?

Nearly one in four small retailers only learn an item is out of stock when a customer tries to buy it, according to the Global Payments 2025 Retail Inventory Report of 200 small retailers. For these shops, the first alarm is an unhappy customer.

Returns make this worse. A returned item that isn’t logged back in stays invisible to your online store, so you may show it as sold out while it sits in a box. Asalta eCommerce links an online store and marketplace listings to central stock, so a return counted in one place shows up everywhere. It’s one option to compare, and a careful spreadsheet routine works too. You can read more on the Asalta eCommerce page.

Key Takeaways

• Expect a gap: about one-third of online shoppers return items versus 6.2% in store.
• Explain the cause: 87% of over-orderers are trying items on at home.
• Offer in-store returns: nearly 8 in 10 shoppers would return in store if online returns carried a fee.
• Inspect what comes back: an estimated $10.40 per $100 in returns is fraudulent.
• Count returns back in: a return not logged is stock your store can’t sell.