Survey Research Shows Influx of Shoppers Buying Online, Returning In-Store is Crushing Many Retailers

43 percent say handling online order returns in-store is a top challenge, and that increases in the volume of returns has created new costs

Only 17 percent of shoppers spend more money in-store following a return and 43 percent simply return the item and walk out

COLUMBUS, Ohio--(BUSINESS WIRE)--A new survey shows the increasingly growing volume of orders being bought online and returned to stores is crushing many retailers, as they struggle to keep up with new costs and new workloads from in-store returns processing. Meanwhile, retailers aren’t capitalizing on the theoretical upside of returns to ring up more sales in the store – a veritable lose-lose proposition.

These are among the key findings from a study by Retail Systems Research (RSR), sponsored by retail technology provider Jumpmind. The research surveyed both retail executives and store managers in December 2024 through January 2025 to understand opportunities, threats, gaps and technology spending priorities, as retailers aspire to meet modern shopper expectations.

As ecommerce makes shopping easier than ever before, it’s creating an unintended influx of product returns; the average return rate for online transactions is three times higher than the return rate for in-store purchases.

While a majority of retailers encourage online shoppers to process returns in-store, 43 percent admit handling online order returns in-store is a top challenge, and that increased volume of online order returns to stores has created new costs. More than 1 in 5 retailers say their stores were not designed for today’s more advanced customer service functions (order pickup, online returns, etc.). And 41 percent report omnichannel fulfillment and returns require new in-store sales rep roles and workflows.

Additionally, the research reveals retailers vastly overestimate the potential upside of in-store returns. While 72 percent of retailers believe this creates opportunities to drive new sales, only 17 percent of shoppers end up spending more money following a return in-store. And the vast majority of those surveyed – 43 percent – simply return the item and walk out.

As retailers prepare for the upcoming holiday shopping season and a surge of returns – often referred to as “Returnuary” – they must modernize in-store infrastructure to efficiently process returns.

Ease of returns is often cited as a key factor in why consumers choose to shop at specific retailers. Retailers that adopt modern POS systems can transact quickly, seamlessly, and cost-effectively for all. This is especially crucial with shoppers who prefer to return an item and simply walk out, as it can free time for associates to focus on other interactions that can translate into sales.

“Those retailers whose returns processes have not been overhauled since their (likely) creation during the pandemic are particularly challenged, as the processes they cobbled together in a hurry are not fit for today’s scale of returns,” said Steve Rowen, Managing Partner at RSR. “The ability to accept a return is one thing; the ability to profitably handle that merchandise is far more complex.”

“Retailers are not capitalizing on in-store returns in the way they expected,” said Lauren Cevallos, Head of Strategy and Customer Success at Jumpmind. “Instead, the cost and complexity of handling online returns is weighing down retailers’ store efficiency and profitability. Many are using disparate and legacy systems that make the process more challenging – for both store associates and customers. The time is long overdue for retailers to modernize their in-store systems to minimize the pain and friction around returns and deliver on the promise and benefits of Buy Online Return in Store.”

To learn more about the research, visit: www.jumpmind.com/cracking-the-code

About Jumpmind

Jumpmind is a leading provider of innovative retail technology solutions. Our cloud-native, mobile POS platform empowers retailers to streamline operations, enhance customer experiences, and achieve sustainable growth. With a future-proof architecture and a focus on delivering exceptional value to our clients, Jumpmind is committed to shaping the future of retail technology. Jumpmind powers inspired in-store experiences for a growing list of leading retailers, including American Eagle Outfitters, Build-A-Bear Workshop, DTLR, Petco, Reitmans Canada Ltd., Shoe Palace, The Paper Store, Landmark Group, and The Vitamin Shoppe. Learn more about Jumpmind at www.jumpmind.com.