Returns Post-Christmas Fueled by Social Media Trends

The day after Christmas marks the start of the annual gift-return season. Shoppers flood malls and online portals to exchange or return items, with the National Retail Federation estimating that returns will account for $890 billion this year—17% of annual sales.

This year, rising return rates have been linked to trends originating from social media platforms like TikTok and Instagram. According to Salesforce, holiday shoppers spent $281 billion online—a record-breaking figure—with 20% of purchases made directly through social media apps.

One trend, the "try-on haul," involves ordering multiple items, trying them at home, and returning unwanted ones. Another, called "bracketing," sees consumers buying multiple sizes of the same item to find the perfect fit, returning those that don’t work. Both practices have driven a 36% year-over-year increase in return rates, posing significant costs to retailers.

Shoppers admit these practices offer convenience but acknowledge their impact. "I often order different sizes to see what fits best," one shopper shared. Experts warn these trends hurt retailers’ bottom lines, as processing returns and restocking items is costly.

Ultimately, rising return rates could mean higher prices for consumers in the future as retailers work to offset their losses.