The Returns Revolt: New Data Shows Return Policies Are Driving Shoppers Away Before Checkout

CALGARY, AB–Even before shoppers reach checkout, brands are losing more revenue, often without realizing why. New consumer research from Cashew reveals that outdated return policies are suppressing demand, eroding trust, and stopping shoppers from buying in the first place.

In its latest Data Drop, The Returns Revolt, Cashew surveyed 2,000 consumers across Canada and the U.S. and uncovered a critical shift. Returns are no longer a back-office cost. They are a front-line conversion driver. Nearly half of shoppers say they hesitate to purchase if return shipping is not free, regardless of product or price.

“CMOs are optimizing ads and checkout flows while ignoring one of the biggest trust signals in commerce,” says Addy Graves, CEO of Cashew. “Returns don’t just impact margins after the sale. They determine whether the sale happens at all.”

Return Fees Are Blocking Conversion Before Checkout
47% of consumers hesitate to purchase when return shipping isn’t free, according to new data, reducing repeat purchases and long-term loyalty.

Sizing Issues Account for the Majority of Returns
One in four purchases fails because products do not meet expectations. In apparel, 74% of returns are due to fit alone. Static size charts and generic visuals no longer meet shopper expectations. Consumers increasingly demand clear guidance and confidence before clicking “buy.”

Shoppers Over 45 Drive the Majority of Returns
Contrary to common assumptions, shoppers over 45 account for more than half of all returns, with consumers aged 65 and older representing the largest segment. “High return rates aren’t about bad customers,” Graves says. “They’re signals that experiences weren’t designed for the people driving the most revenue.”

Returns Start Before Checkout
35% of shoppers add items to their cart expecting to return them, and more than half say they will not complete a purchase without detailed sizing visuals or guidance.

The takeaway for brand leaders is clear: returns strategy is growth strategy. Brands that reduce friction, invest in sizing intelligence, and design for multi-generational shoppers don’t just lower return rates. They unlock conversion, trust, and long-term loyalty.

The full report Data Drop: The Returns Revolt is now available for free access.

Cashew is a market research solution that delivers real-time data from real people. By collecting proprietary, human-driven insights, Cashew helps brands understand how and why consumers make decisions faster and more accurately than traditional research. Cashew enables teams to design better products, experiences, and strategies that drive growth and loyalty.