How Returns Are Redefining Retail Operations in the Try-On Economy

The convenience of online shopping makes it easy for consumers to treat their homes as fitting rooms. In apparel especially, shoppers are increasingly ordering multiple sizes, styles and colors with no intention of keeping everything.

What was once occasional behavior is now expected, with shoppers planning for returns as part of the purchase.

It’s no surprise that return policies have a growing influence over purchase decisions. New data from Route found that 82 percent of shoppers say easy return options influence their decision to buy from a new brand.

As the try-on economy becomes the norm and returns move upstream in the purchase journey, retailers must adapt their operations to deliver a seamless experience while managing costs and protecting margins.

The Cost of Convenience is Adding Up

Shoppers today expect a level of ease and transparency in the returns process that mirrors what they experience when making a purchase. Pre-paid labels, convenient drop-off options, fast refunds and real-time tracking are now baseline expectations.

However, delivering that experience at scale requires close coordination across logistics, inventory and customer support.

As return volumes grow, so do the operational demands behind the scenes. More packages moving in both directions increase freight and handling costs, particularly as keep rates decline.

That same volume also makes inventory harder to manage. Items that appear available may actually be in transit or awaiting processing, creating “inventory in limbo” that can complicate forecasting and delay restocking.

The impact extends beyond operations to the customer experience. Higher return volumes often lead to more customer inquiries, especially around refund timing and status, adding strain to support teams and making clear, timely communication essential. In fact, 43 percent of shoppers say waiting too long for a refund is their top return frustration.

Shipping, inspection, repackaging and the potential loss of full-price resale value all add up, putting pressure on margins if not managed carefully. Meanwhile, 34 percent of shoppers cite return shipping or restocking fees as a top frustration, making it harder for retailers to recover these costs without impacting the customer experience.

4 Ways Retailers Can Take Control of Returns Operations

In the try-on economy, managing returns strategically is critical to supporting both the business and the customer experience. A more structured approach helps reduce operational strain while maintaining the flexibility shoppers expect.

Some important priorities stand out:

1. Segment return policies intelligently.

Not all products or customers carry the same level of risk. Align return rules and fees based on product type, price point and customer behavior. For example, offering free returns to shoppers with a brand’s loyalty status. This helps drive brand loyalty and customer lifetime value while delivering a premium experience for a brand's most devoted customers.

2. Accelerate the returns pipeline.

The faster items are routed, inspected and restocked, the more likely they are to be resold at full price. Prioritize high-demand SKUs and streamline routing and inspection workflows to reduce loss, improve availability, and shorten time to resale.

3. Improve visibility and communication.

Clear, proactive updates on return status reduce uncertainty and support volume, particularly as refund timing remains a top concern for shoppers. Clear communication reduces return-related inquiries while improving efficiency and customer trust.

4. Optimize reverse logistics networks.

Rethink how and where returns are processed by consolidating shipments, using regional processing hubs, and making more intentional decisions about whether items should be restocked or resold. These changes drive efficiency by reducing unnecessary movement.

A New Standard for Retail Success

The try-before-you-buy mindset is here to stay. Consumers expect flexibility and now factor return experiences into whether they purchase at all.

For retailers, that creates both challenges and opportunities.

Retailers that invest in more strategic, well-orchestrated returns operations will be better positioned to meet evolving expectations, build trust, and support long-term growth.

Eric Kobe is the CEO of Route, an AI-powered platform that unifies protection, tracking, and returns all in one place.