As economic pressures mount and consumer behaviors shift, Summer 2025 promises to be a pivotal season for retailers navigating the complex landscape of returns. According to ReturnPro's Consumer Returns Sentiment Report, rising inflation, looming tariffs, and increasingly strategic consumer behavior are reshaping expectations and putting new demands on retailers. In this climate, returns are no longer a back-end issue, they are a central part of the shopping experience and a potential differentiator for brands.
Here’s your Summer 2025 Returns Playbook: five strategic actions every retailer and brand should be implementing right now.
1. Modernize Your Returns Policy—Transparency Is Non-Negotiable
With 73% of consumers saying a return policy influences whether they complete a purchase, and 52% reporting that return terms are getting stricter, there’s never been a better time to reevaluate your policies. A return policy isn’t just a post-purchase formality, it’s a core part of the customer experience that directly impacts conversion, loyalty, and long-term brand equity.
Retailers must ensure return terms are not only fair but also clearly communicated. Ambiguity kills trust and trust is currency in a high-inflation environment. Consider publishing return policy FAQs, setting expectations for processing times, and clearly stating any restocking fees or exclusions.
Publishing return policy FAQs builds consumer trust in several ways:
a) Transparency - clearly outlining return policies that highlight eligibility, timelines, and steps.
b) Perception - reduces perceived risk, addresses many “what if” questions (what if it doesn’t fit, etc.) and increases buyer confidence.
c) Intention - signals customer-centric values, FAQs imply you care reflecting a commitment to service and fairness.
Consumers have become accustomed to instant gratification in their shopping journey; slow or restrictive return policies disrupt that flow and can undermine even the strongest brand loyalty.
2. Invest in Instant Refund Technology
Speed is a growing expectation. Instant refunds are no longer a luxury, they’re becoming table stakes. Drop-off confirmation models and AI-powered refund engines allow retailers to provide immediate reimbursement as soon as a package is scanned or returned.
AI-powered refunds improve the shopper’s experience through:
a) Frictionless experiences – Automating manual steps eliminates days for approval or instructions.
b) Personalized return options – Analyzing customer profiles offers options that align with shopper preferences, giving the customer a sense of control.
c) Smarter recommendations and exchanges – Instead of losing the sale, customers get recommendations reducing churn and growing sales.
Not only does this increase customer satisfaction, but it also accelerates the resale or recommerce cycle, keeping inventory moving. Retailers using an AI-driven returns platform have reported significant reductions in processing times and a measurable uptick in repeat purchases.
3. Prepare for a Spike in Seasonal Returns, Especially for Back-to-School
Back-to-school shopping is expected to be highly volatile this year. With 73.81% of consumers worried about tariff-related price hikes and 20% unwilling to shop at retailers that don’t offer free returns, the stakes are high.
Promotional periods like Prime Day and back-to-school are notorious for inflated order volumes and return surges. Retailers should:
a) Increase reverse logistics capacity
b) Pre-position warehouse staff for inspection and restocking
c) Use returns data to forecast SKU-level returns
Amazon’s return rate during peak periods is projected to reach 30%. Retailers must ensure their reverse logistics and CX operations are equipped to handle the influx while maintaining speed and satisfaction.
4. Launch or Expand Secondary Market Channels
The report shows that 68% of consumers would shop on secondary marketplaces to avoid paying full price due to tariffs. This is a prime opportunity for retailers to recapture value from returned items by reselling them through branded recommerce outlets or partner channels.
By integrating recommerce into the returns process, retailers can:
a) Reduce waste
b) Improve margin recovery
c) Serve a more cost-sensitive customer base
5. Use Returns Data to Forecast Behavior & Protect Margins
Return data is a strategic asset. It can reveal patterns in SKU performance, fraud risk, and customer satisfaction. Retailers who combine this data with AI can proactively identify:
a) Which items are likely to be returned
b) Which customer segments are high-return risk
c) Where to modify product descriptions or fit guides
This intelligence allows for smarter merchandising, better marketing, and stronger profitability.
As Summer 2025 continues, retailer still have time to treat their returns as a strategic lever, not a cost center. Whether your taking steps to modernize policies and enable instant refunds to prepare for seasonal surges and unlock value through recommerce, every move counts. Consumer expectations change fast, and returns are no longer just about damage control, they’re about differentiation. Retailers who invest now in smarter, AI-driven returns strategies won’t just reduce friction, they’ll build loyalty, recover margin, and future-proof their business.
