Seel’s inaugural 2025 Returns and Refunds Report, which analysed 10m transactions, revealed that returns tied to late deliveries increased 124% year-over-year (YoY), while returns related to missing packages rose 42% YoY.
In contrast, cases where shoppers received the wrong item fell 47% in the fashion sector.
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Seel’s data suggests shoppers are placing orders earlier in the season, sending back unwanted items more quickly, and increasingly expecting rapid refunds.
Returns are now routine for many consumers, with nearly one-third returning at least one item each year, and a smaller cohort makes multiple returns across categories.
This is posing what Seel says is a significant challenge, costing retailers 20-25% revenue and accounting for $890bn last year alone.
The report also found that returns pick up during the holiday months of November and December, rising 16% over that period.
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By GlobalDataOther findings from Seel’s 2025 Annual Returns Report
- Seel found that the leading reasons for returns were “Item Defective” and “Change of Mind.” Defective-item returns rose 14% YoY, and change-of-mind returns increased 9% in 2025. Delivery performance improved overall, with returns tied to late delivery falling 10% compared with 2024.
- Quality issues are still pushing returns across categories, with defects rising in some segments, including a 164% year-over-year increase in defective products within computers and electronics.
- Return options influence whether shoppers buy or not, with 74% of surveyed consumers saying that they wouldn’t complete a purchase if returns weren’t available.
- Most returns are mid-ticket items, and more shoppers are adding protection. The typical returned product costs $100–$200, and selections of purchase protection for items $50+ rose 50%.
- Resale continues to see far more returns than new goods, with second-hand purchases returning 140% more often, pointing to persistent friction in recommerce during peak weeks.
Seel’s chief revenue officer, Laura Huddle, said: “Our goal with this report is to shed light on what retailers are really facing and what shoppers are experiencing during the busiest weeks of the year. Between recession fears, job uncertainty, increased buyer’s remorse, and growing trends like ‘try before you buy,’ we’re seeing shoppers be more thoughtful and take extra time thinking through purchases.
“Post-purchase experience is playing an increasingly important role in a shopper’s view of the brand, with the vast majority now preferring that option to buy with confidence.”
