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Holiday Sales Set Records, But Returns Are a Growing Problem

NEWS
January 28, 2025
6
min read

The 2024 holiday season brought in a record $1.2 trillion in sales. Thanks to mobile shopping, social media influence, and bigger spending budgets, retailers saw great success.

But there’s also less exciting news: return rates spiked by 28% compared to last year. According to Salesforce, $122 billion worth of products have already been returned. This rise in returns didn’t happen overnight—it's a growing trend and a significant challenge for the fashion industry.

As returns continue to climb, managing them is becoming essential. Not only to stay profitable, but also to keep customers satisfied and remain sustainable.

The Challenge: Rising Returns

The volume of holiday returns is creating serious problems. High return rates increase costs for shipping, restocking, and processing, while also putting pressure on operations and logistics. And not to forget the global cost: the environmental impact of excess inventory and shipping emissions.

For retailers, January has officially become ‘Returnuary’. Returns are no longer just a logistical headache, they are a critical part of the customer journey. How brands handle this period can make a big difference in keeping customer loyalty intact and minimizing losses.

The Hidden Value in Returns

But let’s look at this optimistically: Returns are more than just a necessary cost of doing business. They’re a valuable source of data, offering insights into customer behavior, product performance, and areas where operations could improve. For example, patterns in return reasons, like sizing issues or product mismatches, can guide decisions across design, production, and marketing.  

By using this data, brands can tackle a variety of challenges: reduce return rates, improve customer satisfaction, produce sustainably and streamline inventory management. Addressing the root causes of returns transforms this challenge into growth.

SAIZ Return Analytics to Helps Brands Thrive

This is where SAIZ Return Analytics steps in. Built on the SAIZ principle of "Connecting data from product to customer," our solution turns returns into valuable insights that fuel growth, boost efficiency, and support sustainability.

  • Analyze Sizing-Related Returns: Benchmark product return performance, identify worst-performing items, and investigate root causes in detail.
  • Take Targeted Action: Our centralized dashboard gives cross-functional teams the tools they need to quickly act on return insights—whether it's refining product designs, adjusting descriptions, or optimizing stock levels.
  • Win on Every Level: By addressing the causes of returns, brands not only improve profitability but also enhance customer satisfaction and support their sustainability goals, creating a win-win-win for businesses, customers, and the environment.

Ready to Discover SAIZ?