Seel, the agentic post-purchase platform, today released its inaugural 2025 Returns and Refunds Report ahead of the Holiday Shopping Spree. Created for retail and D2C brands, the report analyzed 10 million transactions, breaking down category-level insights and return patterns that reveal how shoppers are responding to points of friction in the buying process and the broader economic landscape. To view a summary of the report, visit: https://www.seel.com/blog/2025-state-of-returns-refunds
 

The Trillion-Dollar Cost of Returns Analyzed 

Industry estimates show that returns continue to pose a significant challenge, costing retailers 20-25% revenue, and accounting for $890B last year alone, making it critical to understand what drives return behavior ahead of the heaviest shopping periods of the year. 

According to Seel’s data, shoppers are buying earlier, returning items sooner, and expecting faster refunds. Many treat returns as a normal part of shopping, with nearly one-third of shoppers returning at least one item a year and a smaller group returning multiple items across categories. The study noted that, during the holiday period, defined as November and December, return activity increases by 16%. 

“Our goal with this report is to shed light on what retailers are really facing and what shoppers are experiencing during the busiest weeks of the year. Between recession fears, job uncertainty, increased buyer’s remorse, and growing trends like ‘try before you buy,’ we’re seeing shoppers be more thoughtful and take extra time thinking through purchases,” said Laura Huddle, Chief Revenue Officer at Seel. “Post-purchase experience is playing an increasingly important role in a shopper’s view of the brand, with the vast majority now preferring that option to buy with confidence.”

Key Findings From the 2025 Seel Annual Returns Report

• Post-purchase confidence affects conversions, with 74% surveyed shoppers saying they would not make a purchase without a return option
• Secondhand return rates remain significantly higher than new items, with resale returned 140% more often on Seel’s platform
• Delivery issues are driving returns in Fashion and Accessories, including sharp increases in late deliveries (124% increase YoY) and missing packages (42% YoY)
• Product quality concerns continue to influence returns across categories, including a year-over-year rise in defective products among computers and electronics (164% increase)
• The average returned item falls in the 100 to 200 dollar range, and the report shows a 50% increase in shoppers selecting purchase protection for items $50 and above

Year-Over-Year Breakdown Shows an Increase in Defective Items & On-Time Delivery

Seel’s report also identified the top drivers of returns, led by “Item Defective” and “Change of Mind.” Looking at year-over-year data, the main reasons for returns were the result of quality and reconsideration, with defective item returns rising 14% and change of mind returns climbing 9% in 2025. Overall, retailers appear to be doing a better job of delivering packages on time, with a 10% decrease in this reason for returns compared to 2024.

Measuring Returns by Category: Delivery Pain in Fashion, Quality Issues in Electronics

Seel’s category data showed that Fashion and Accessories saw the sharpest rise in delivery-related returns, with late deliveries jumping 124% year over year and missing packages increasing 42%. Meanwhile, the fashion industry saw a 47% drop in delivering the wrong item to customers. 

In Consumer Electronics, the biggest spike came from product performance issues, where defective item returns climbed 33%, alongside a notable rise in undelivered items at 13% year-over-year. That said, Consumer Electronics improved on delivery timing, with a 45% drop in late deliveries. These trends show that returns are being driven by very different pressures in each category, from delivery breakdowns in fashion to quality and reliability concerns in electronics.

For retailers, the takeaway is clear: brands that respond with solutions to address specific concerns will be better positioned to keep holiday shoppers engaged and coming back.

The Key to Success: the Post-Purchase Experience

As retailers enter the final weeks of the shopping season, Seel’s findings show a marked shift: returns aren’t just an afterthought of the ecommerce experience, they’re part of the brand promise that's key to driving loyalty. 

To help retailers uncover insights critical to making the right decisions, Seel’s platform uses AI to analyze patterns across its merchant network. This helps brands anticipate return spikes, detect product quality issues, and build refund experiences that strengthen customer relationships instead of eroding them. Retailers investing in flexible, transparent post-purchase experiences can keep shoppers coming back long after the holidays.

Read more about the findings in this blog post. To explore how Seel can power the post-purchase experience, visit: https://www.seel.com/.