Read our full analysis for a more in-depth look at these trends.
Buy now, return later: Retailers pay for customer loyalty
Higher-income households tend to return goods the most, and, generationally, Gen Z the least, except for electronics.
August 14 2025
Key takeaways
- Consumers want the flexibility to return products, but this is costly for retailers. A 2024 National Retail Federation (NRF) survey of large U.S. retailers put the total cost at $890 billion, with the return rate in 2024 more than double that in 2019. Bank of America credit and debit card data also suggests still-high rates of return across retailers of all sizes, at 4.5% in 2025 year to date (YTD).
- These return costs are a significant burden for a retail industry already under pressure from tariffs and economic uncertainty. Bank of America card data suggest returns to department stores are particularly high. Other categories have lower refund rates, but there is still no sign of declining returns in most categories.
- Who is returning most? We find higher-income households return more goods than their lower-income counterparts according to Bank of America internal data, particularly in department stores, where they do so at about double the rate. Gen Z also return goods at lower rates than other generations, except in electronics, where they are second only to Traditionalists.
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