CALGARY, Canada — Cashew Research warns retailers and brands that return policies are increasingly affecting purchase decisions before shoppers reach checkout, according to new consumer data released Wednesday.
In its latest report, Data Drop: The Returns Revolt, the Calgary-based research firm surveyed 2,000 consumers across the United States and Canada and found that nearly half of shoppers hesitate to complete a purchase if return shipping isn't free, regardless of product category or price point.
The full report - Data Drop: The Returns Revolt - is now available for free access.
The findings indicate that returns are now more than just a post-sale operational issue; they are also a key front-end conversion lever.
“CMOs are optimizing ads and checkout flows while ignoring one of the biggest trust signals in commerce,” said Addy Graves, CEO of Cashew. “Returns don’t just impact margins after the sale. They determine whether the sale happens at all.”
Return Fees Stall Conversion
According to the survey, 47% of consumers hesitate to purchase when return shipping is not free, a friction point that researchers say reduces repeat purchases and long-term loyalty.
The data also shows that returns behavior often starts before checkout. About 35% of shoppers say they add items to their carts expecting to return them, and more than half indicate they won't make a purchase without detailed sizing visuals or guidance.
Fit and Sizing Remain Core Drivers
Product fit remains a leading cause of returns, particularly in apparel. The report found that one in four purchases fails to meet customer expectations, and 74% of apparel returns are attributed to fit issues.
Cashew said static size charts and generic product images are no longer sufficient for consumers seeking clearer guidance and greater confidence before making a purchase.
Older Shoppers Account for Majority of Returns
Contrary to common assumptions that younger consumers drive return rates, the survey found that shoppers over 45 account for more than half of all returns. Consumers aged 65 and older represent the single largest return segment.
Graves said elevated return activity among older shoppers reflects design gaps rather than customer misuse.
“High return rates aren’t about bad customers,” she said. “They’re signals that experiences weren’t designed for the people driving the most revenue.”
Returns Strategy as Growth Strategy
The report’s overarching conclusion is that returns strategy should be viewed as a growth driver rather than a cost center. Brands that reduce friction, invest in improved sizing intelligence, and design experiences for multi-generational audiences can increase conversion rates, build trust, and strengthen long-term loyalty, the firm said.
Cashew positions itself as a real-time market research provider offering proprietary, consumer-driven insights to help brands refine products, experiences, and go-to-market strategies.
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