Wealthy Americans’ online shopping habits are costing retailers billions — and all consumers may pay the price

Core Insights - Online shopping has led to a significant increase in return rates, particularly among wealthier households who engage in "speculative shopping" [1][2] - Higher-income households return 5.3% of their purchases compared to 3.7% for lower-income households, indicating a shift in consumer behavior [1][3] - Retailers are facing rising costs associated with returns, projected to reach $890 billion in 2024, which is nearly 17% of total sales [4] Retailer Responses - To mitigate rising return costs, many retailers are tightening their return policies, including implementing return fees for at least one method [5] - Return windows have been shortened significantly, with some policies now as brief as two days compared to the previous 180 days [5] - Certain categories of items, such as clearance or swimwear, are now designated as final sale, restricting returns [5]