As online shopping has grown in popularity, consumers have become more comfortable with the idea of easy returns. This has resulted in an increasing rate of returns in the US. But 2023 saw a flatlining in the overall retail return rate with the in-store return rate declining relative to 2022. This trend was evident during the all-important holiday season.

While consumers value being able to return purchases at minimal cost, it is an expense for retailers to handle returns. Some retailers have taken steps to disincentivize returns by implementing new measures such as raising shipping costs or placing a minimum value on purchases to receive free shipping. Our analysis, which shows a slight slowing in return rates, suggests that some of these steps may have been successful.

Introducing “Did you know?”

This is the first installment in a new research series sharing interesting statistics derived from aggregated and anonymized Mastercard insights. "Did you know?" will take topical issues around the globe and share our analysis and findings in an easy-to-digest format. Mastercard Data & Services solutions, like SpendingPulse™ , offer real-time, high-frequency insights into consumer trends, helping address crucial business decisions through aggregated sales activity within the Mastercard network.

Did you know?

• US return rates, measured as reversed transactions as a percent of current transaction volume using aggregated and anonymized Mastercard data, were little changed in 2023 relative to 2022.
  • 4.9% of transactions in 2023 were returns, a slight drop from the 5% rate in 2022.


• In-store return rates fell slightly in 2023 while online held steady.
  • Online returns made up 5.7% of transactions in 2023, while the in-store return rate ticked down to 4.2% in 2023 from 4.4% in 2022.
  • Online returns accounted for 55% of total returns in 2023.


• The days following Christmas continue to reign as the top returns days.
  • The peak return volume was on Dec. 27 in 2023, two days after Christmas. Interestingly, for online, the peak return volume was on Dec. 13, following Black Friday and Cyber Monday online promotions.


• Department stores have the highest total return rates while big box stores have the lowest rates.
  • At 18.1%, the in-store return rate for department stores is more than four times the overall in-store return rate. On the other side, big box retailers only see a 3.3% in-store return rate.


• Apparel return rates are higher online than in-store and are highest for women’s apparel stores.
  • Apparel returns are concentrated online with a return rate of 12%, nearly three times the return rate for apparel in-store.
  • Digging deeper, women’s clothing has the highest return rate, at 11.3% for overall and 16.3% for online. On the other side, children’s apparel has the lowest return rate.

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Notes & Disclaimer

About the Mastercard Economics Institute

Mastercard Economics Institute launched in 2020 to analyze macroeconomic trends through the lens of the consumer. A team of economists, analysts and data scientists draws on Mastercard insights — including Mastercard SpendingPulse™ — and third-party data to deliver regular reporting on economic issues for key customers, partners and policymakers.

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