Returns continue to be a thorny issue for online retailers, but they could provide an opportunity to create brand loyalty for customers.

Retailers estimate that 15.8 percent of their annual sales will be returned this year, totaling $849.9 billion, according to the 2025 Retail Returns Landscape report released today by the National Retail Federation and Happy Returns, a UPS company. That compares to last year’s total, which was $890 billion, or 16.9 percent of sales.

“Returns are no longer the end point of a transaction,” said Katherine Cullen, NRF vice president of industry and consumer insights. “They provide an opportunity for retailers to create a positive experience for customers and can translate to brand loyalty. Retailers are constantly evolving and working to meet customer exp

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