2021 Study

Returns
Benchmarks
Report
 Background and methodology
Key evaluation points:
Narvar analyzed the published return policies of 197 retailers in July 2021 to set a baseline
against which to benchmark standout ecommerce return policies. Return method: How many ways can a
customer return an item?
What follows is the key trends and findings from the analysis, along with best-in-class policy
VIP return benefits: Personalized
highlights and our recommended return policy rubric.
offerings for loyal customers.
The retailers span the spectrum, including:
Refund options: How many ways can a
● Fortune 50 retailers (11)
customer get their money back?
● Omnichannel retailers (82)
● D2C retailers (104)
Visibility: How visible/transparent is the
return policy?

Across 14 categories: Fees / charges: What will it cost to

return an item?
● Accessories (5%) ● General merchandise (6%)
● Apparel (36%) ● Health/beauty (14%)
Initiation channels: How do your
● Automotive (2%) ● Home improvement (5%)
customers initiate a return?
● Department stores (2%) ● Housewares (7%)
● Electronics (5%) ● Outdoor (1%)
Return window: How long after
● Food/wine/perishables (3%) ● Specialty (7%)
receiving can a consumer return an
● Footwear (6%) ● Toys/hobbies/books/music (3%)
item?

© Narvar 2021 | Returns Benchmarks Report 2

 Key findings
Table of contents:
This report studies the published return policies of 197 retailers, setting a baseline against
which to benchmark standout approaches. Benchmarking retailers’ 04
return policies
For example:

● 39% of retailers offer a 30-day return policy. The future of returns: VIP 14
● 42% of retailers do not clearly communicate about refunds. personalization
● And, while all Fortune 50 retailers cover shipping costs, only 45% of omnichannel
retailers and 22% of D2C retailers do so.
Introducing a 23
Notably, best-in-class retailers exceed expectations when it comes to their return policy. comprehensive returns
They leverage free return shipping as a way to entice faster returns or encourage refund policy rubric
credit. Others offer tiered policies to give special convenience to VIP customers. We believe
the future of returns is customized, and these policies are prime examples of that experience.
Meeting customers’ 28
evolving needs
“We believe returns should be personalized. We’ve tailored our return policies to our loyalty
tiers, rewarding VIPs while building trust with new customers. This has increased
customer satisfaction and has positively impacted our business operations.”

Karime Benaissa
Chief Digital Officer

© Narvar 2021 | Returns Benchmarks Report 3

 Benchmarking
retailers’ return policies

© Narvar 2021 | Returns Benchmarks Report 4

 Return window

A 30-day return policy is standard for retailers.

80

77

60
No. of retailers

3 days: GOAT Nordstrom, Saks,

40 American Eagle, Urban
7 days: Hodinkee Outfitters, Abercrombie
& Fitch, Famous
14 days: Cuup,The RealReal, thredUP, Footwear, and more
20 Universal Standard, Taft, and more
25 25

15 10
1 1 9
6 8
10 10
3 7 14 30 45 60 90 365 N/A None

Return window length (in days)

Note: some retailers extend their return policy for store credit after a certain time period. This chart reflects the last day a return is accepted, regardless of refund method.

© Narvar 2021 | Returns Benchmarks Report 5

 Return window

The return policy “sweet spot” is shorter among D2C brands.

82% of Fortune 50 and

63% of D2C is 30 days or less 74% of Omni is 30-90 days
No. of
retailers

50
D2C

40 Omnichannel

Fortune 50
30

20

10

0 3 7 14 15 20 21 28 30 40 45 50 60 90 100 120 180 365 None

Return window (days)

© Narvar 2021 | Returns Benchmarks Report 6

 Return window

Electronics category stands out with its short return window.

The categories with wider ranges:

Department Stores ● Apparel

90 Days - No limit (7-365 days, one with no limit)

● Specialty
(14-365 days, two with N/A
policies)
Health / Beauty
30-100 Days ● General merchandise
(30-365 days, two with N/A
policies)

Electronics ● Footwear
14-30 Days (3-90 days, one with no limit)

0 10 20 30 40 50 60 70 80 90 100 110 120 180 365 None

*Does not include Liquid IV, a health and beauty D2C company without a specified return window.

© Narvar 2021 | Returns Benchmarks Report 7

 Initiation channels

Most retailers enable returns through an online portal, app, or

order lookup.

91%
The categories with more than 90% adoption of an
online portal, app, or order lookup returns process:

● Department stores (100%)

63% ● Outdoor (100%)
● Footwear (90%)
52%

The categories that still use customer support,

forms, return address listed on site, or in-store only
for returns are:

● Food/wine/perishables (100%)
● Toys/hobbies/books/music (67%)
Fortune 50 Omnichannel D2C
● Specialty (57%)

© Narvar 2021 | Returns Benchmarks Report 8

 Return methods

33% of retailers have modern, convenient return method

offerings (printerless, curbside, return location network).

Key takeaway:

Retailers with special return method offerings It’s standard practice to offer in-store
and mail-in return options.

To offer the ultimate in convenience,

retailers are now looking at more
modern, convenient options, such as
printerless or boxless.
Fortune 50 45%
● Everlane, Levi’s, and Pact publicly
offer every method analyzed.

Omnichannel 42% ● Walmart and Amazon, for example,

offer all options except
curbside/contactless returns.

● Additional return locations are the

D2C 25% most popular special option
(publicized by 31% of retailers).

© Narvar 2021 | Returns Benchmarks Report 9

 Visibility of policy

Fortune 50 retailers have the most visible return policies.

45% of Fortune 50 retailers link to

the returns from the top
navigation or banner

● Omnichannel - 6%
● D2C - 14%

64% of Fortune 50 retailers

mention returns in their PDPs
and have a link in the global nav

● Omnichannel - 46%
● D2C - 39%

18% of Fortune 50 retailers

have a link in the footer ONLY

● Omnichannel - 34%
● D2C - 26%

© Narvar 2021 | Returns Benchmarks Report 10

 Refund options

Setting expectations about refunds is a mixed bag.

vaguely estimate timing of

return acceptance and refunds
42% Key takeaway:
do not clearly
communicate
13% Most common culprits of vague
refund expectations: For the best customer experience,
about refunds specify how long your warehouse will
● General merchandise - 36%
● Specialty - 36%
take to process the refund separately
● Footwear - 18% from how long it takes the bank to post
the refund.

● 12% of retailers offer instant

specify expected 29% refunds upon receiving the
return acceptance 58% provide no information on
item
and refund refund timing ● 39% of retailers estimate
processing time refund approval within 7 days
Categories most likely to say
nothing:

● Outdoor - 50%
● Electronics - 44%
● Health/beauty - 41%

© Narvar 2021 | Returns Benchmarks Report 11

 Fees / charges

Return shipping fees prevalent among omnichannel and D2C retailers.

All Fortune 50 retailers cover shipping costs.

86%
Retailers charging for shipping fees
of flat-rate return shipping
fees are under $10.

The categories with significantly more

Omnichannel 45% expensive shipping fees are:

● Housewares
D2C 22% (Serena & Lily, Article, etc.)

● Specialty
(Leslie’s Poolmart, Moment, etc.)

© Narvar 2021 | Returns Benchmarks Report 12

 Fees / charges

Return shipping fees are common in many categories.

100%

83%

75%

Some department
55%
50% stores—like Saks Fifth
50% Avenue—offer free return
43% shipping for the first 14 days,
then charge a small fee.
34%
29%
25%

15%
11%
10%
9%

Toys/hobbies/ Footwear Outdoors Housewares Apparel Speciality Health/ Electronics Accessories General Department
books beauty merchandise store

© Narvar 2021 | Returns Benchmarks Report 13

 The future of returns:
VIP personalization

© Narvar 2021 | Returns Benchmarks Report 14

 The evolution of returns

The economics of returns and exchanges are advancing with the

acceleration of ecommerce. The current status quo of
one-size-fits-all return policies — and the trend towards free
returns, no questions asked — is not a feasible long-term strategy.

We believe that the future is differentiated, with retailers

personalizing their returns experience based on customer
personas ranging from those who are outright fraudsters to your
most loyal VIPs.

The following are best-in-class examples — indicators of more

sophisticated, personalized approaches for VIPs and other
segments moving forward.

© Narvar 2021 | Returns Benchmarks Report 15

 Best-in-class offerings: return method

Offering greater convenience through a network of

return locations can yield operational benefits.

Narvar retailers providing a drop-off

location network have experienced:

● 30-50% adoption rate

● 5 days faster return time

● Reduction in freight cost

(Commercial pickup rates)

© Narvar 2021 | Returns Benchmarks Report 16

 Best-in-class offerings: fees/charges

Free return shipping is a powerful lever to influence

preferred behavior.

Leveraging free return shipping

Many retailers offer free return

To ensure your item is covered by our free return
shipping as a way to entice faster
policy, returns must be initiated within 14 days of the returns and/or store credit refunds.
ship date. Returns initiated after 14 days will have a
$9.95 return charge deducted from your refund. Lulus Free 10 days, $7 after

Saks Fifth Ave. Free 14 days, $9.95 af.

thredUP Free with store credit

Dollskill Free with store credit

© Narvar 2021 | Returns Benchmarks Report 17

 Best-in-class offerings: return window

Extended windows are a key differentiator to reward VIPs.

Extended return windows for VIPs

Many retailers offer longer return
windows for members and VIPs,
such as:

Home Depot 365 vs. 90 days

Target 120 vs. 90 days

Best Buy 30 vs. 15 days

DSW 365 vs. 90 days

© Narvar 2021 | Returns Benchmarks Report 18

 VIP policies

There is significant opportunity for VIP return policies and programs.

Retailers offering VIP return policies

9%
of retailers offer
Fortune 50 27% VIP return policies

Omnichannel 9% Categories with the greatest adoption:

● Footwear (27%)
D2C 7% ● Home improvement (22%)
● Electronics (11%)

© Narvar 2021 | Returns Benchmarks Report 19

 Best-in-class offerings: return method

Provide VIP service to VIP customers with local pickup.

© Narvar 2021 | Returns Benchmarks Report 20

 Best-in-class offerings: return method

Enable boxless returns for a smooth customer experience.

Narvar clients are

seeing a 10%
adoption rate.

© Narvar 2021 | Returns Benchmarks Report 21

 Best-in-class offerings: initiation options

Decrease fraud and increase loyalty by leveraging photo upload for returns.

© Narvar 2021 | Returns Benchmarks Report 22

 Introducing a comprehensive
returns policy rubric

© Narvar 2021 | Returns Benchmarks Report 23

 The return policy rubric for online retailers
Per our research of 197 retailers, here is what qualifies as a standard return policy and what offerings exceed expectations.

Below Standard Standard Above Standard

(1 Point) (2 Points) (3 Points)

Either of the following applies: Can return by mail or in store AND offers at
Return Method Does not have mail and in store options ● Can return by mail or in store least one other option (i.e. additional return
● Can return by mail or one location network locations, printerless, boxless, etc.)

Any published VIP return benefit (longer return

VIP Benefits N/A No published VIP return benefit
window, free return shipping, etc.)

Contact support (phone or email), fill out

One of the following: look up by order number,
Initiation Channels form, return address listed on site, or Label in box, generate label online
online portal, mobile app, etc.
in-store only

Either of the following applies:

● Returns information is linked in either the
Returns information is accessible, but not
Visibility of Policy Returns information is linked in the footer top navigation or the top banner
linked in any navigation
● Product pages have returns information
and there’s a global nav link
Both of the following applies:
● Refund back to original payment method
Refund back to original payment method or
Refund Options Store credit only or store credit
store credit
● Retailer issues refund within 7 days of
receiving1

Return Window Less than 30 days 30 days More than 30 days

Fees / Charges Charges a restocking fee Does not cover return shipping costs No fees or charges

© Narvar 2021 | Returns Benchmarks Report 24

 Average score by category

On average, retailers evaluated are slightly outperforming the standard.

20.0
19.5
15.3 18.0
Total Industry Average 16.4
16.7
16.0

15.0 15.7
15.1

14.1 14.1 14.2 14.6

14.7 14
13.6
Standard
(2 pts across the board)
10.0 10.7

5.0

Food/ Speciality Health/ Housewares Toys/ Home Electronics General Accessories Automotive Apparel Footwear Outdoor Department
Wine/ Beauty Hobbies/ Improvement Merchandise Store
Perishable Books

© Narvar 2021 | Returns Benchmarks Report 25

 We evaluated and scored the following 197 retailers
Omnichannel retailers Category Omnichannel retailers Category Omnichannel retailers Category Omnichannel retailers Category

Abercrombie & Fitch Apparel Duluth Trading Co. Apparel Micro Center Electronics Total Wine & More Food/Wine/Perish
Academy Sports and
Apparel Famous Footwear Footwear Nike Footwear Tractor Supply Home improvement
Outdoors

Ace Hardware Home improvement Five Below Apparel Nordstrom Department stores UGG Footwear

Advance Auto Parts Automotive Floor & Decor Holdings Home improvement O'Reilly Automotive Automotive Ulta Beauty Health/Beauty

Foot Locker Footwear Office Depot Specialty Under Armour Apparel

American Eagle Outfitters Apparel
GameStop Electronics Uniqlo Apparel
Petco Health and Wellness Specialty
Asos Apparel
Gap Apparel Urban Outfitters Apparel
At Home Stores Housewares PetSmart Specialty
Guess Apparel Victoria's Secret Apparel
AutoZone Automotive Primark Apparel
Guitar Center Toys/Hobbies/Books/Music Williams-Sonoma Housewares
Bed Bath & Beyond General merchandise Ralph Lauren Apparel
Hobby Lobby Stores Toys/Hobbies/Books/Music
Best Buy Electronics REI Outdoor Zara Apparel

Hot Topic Apparel

Big Lots General merchandise RH Housewares Zumiez Apparel

Ikea Housewares
BJ's Wholesale Club General merchandise Rite Aid Health/Beauty
Joann Toys/Hobbies/Books/Music Fortune 50 retailers Category
Boot Barn Footwear Saks Fifth Avenue Department stores
Kohl's Department stores Alphabet (Google) Electronics
Brooks Brothers Apparel Sally Beauty Health/Beauty
Land's End Apparel Amazon Gen. merchandise
Camping World Specialty Sephora Health/Beauty

Carter's Apparel Lane Bryant Apparel Apple Electronics

Sherwin-Williams Home improvement
COACH Accessories Leslie's Poolmart Specialty Costco Wholesale Gen. merchandise
Skechers U.S.A. Footwear
Columbia Sportswear Apparel Levi Strauss Apparel CVS Health Health/Beauty
Sleep Number Housewares
Dick's Sporting Goods Outdoor Lucky Brand Apparel Home Depot Home improvement
The North Face Apparel
Dillard's Apparel Lululemon athletica Apparel Lowe's Home improvement

DKNY Apparel Lumber Liquidators Home improvement Tiffany & Co. Accessories Microsoft Electronics

Dollar General General merchandise Macy's Department stores TJ Maxx Apparel Target Gen. merchandise

Dollar Tree General merchandise Menards Home improvement Tommy Bahama Apparel Walgreens Health/Beauty

DSW Footwear Michaels Toys/Hobbies/Books/Music Tommy Hilfiger Apparel Walmart Gen. merchandise

© Narvar 2021 | Returns Benchmarks Report 26

 D2C retailers Category D2C retailers Category D2C retailers Category D2C retailers Category

Allbirds Footwear GOAT Footwear Minted Specialty Shein Apparel

Andie Swimwear Apparel Goli Nutrition Health/beauty Mixtiles Housewares Skims Apparel

Article Housewares Good American Apparel Sony Electronics Electronics

Moment Toys/Hobbies/Books/Music

Athletic Greens Food/Wine/Perish Gymshark Apparel Summersalt Apparel

Monica + Andy Apparel

Away Accessories Moon Juice Health/beauty Supergoop! Health/beauty

Happy Socks Accessories

Barstool Apparel Morphe Health/beauty Supply Health/beauty

HBX Apparel
Bite Health/beauty Mott & Bow Apparel Taft Clothing Accessories
Highsnobiety Footwear
Blenders Eyewear Accessories Ten Thousand Apparel
Nectar Housewares
Hodinkee Apparel
Blueland Specialty The Honest Company Inc. Health/beauty
noah Apparel
HP Electronics
Boxed.com Gen. merchandise The RealReal Apparel
NoBull Project Footwear
Huckberry Apparel
Buck Mason Apparel THINX Inc. Apparel
Hum Nutrition Health/beauty Olipop Food/Wine/Perish
Build.com Home impr. thredUP Apparel
IPSY Health/beauty Ollie Pets Specialty
Caraway Housewares Thuma Housewares
Knix Apparel Oura Electronics
Champion Apparel True Botanicals Health/beauty
Liquid Death Food/Wine/Perish Outdoor Voices Apparel
Chewy Specialty Tula Health/beauty

Chubbies Shorts Apparel Liquid IV Health/beauty Overstock.com Housewares

Universal Standard Apparel

Cuts Clothing Apparel Pact Apparel Vanity Planet Health/beauty

Live Larq Specialty
Cuup Apparel Parachute Home Housewares Veja Apparel
Love Wellness Health/beauty
Dagne Dover Accessories Versed Health/beauty
Parade Apparel
Lulus Apparel
Eloquii Design Inc. Apparel Vitaly Accessories
Lume Deodorant Health/beauty Peach & Lily Health/beauty
Everlane Apparel Vuori Apparel
Maap Apparel Peloton Specialty
Fabletics Apparel Wayfair Housewares
Magic Spoon Food/Wine/Perish PrettyLittleThing Apparel
Fashion Nova Apparel Wild One Specialty
Maisonette Apparel Reformation Apparel
Fenty Beauty Health/beauty Yellowpop Specialty

Manscaped Health/beauty Ridge Wallet Accessories

Figs Health/beauty YETI Specialty

Four Sigmatic Food/Wine/Perishables Marine Layer Apparel ROKA Sports Accessories Youth to the People Health/beauty

Girlfriend Collective Apparel Mattel Toys/Hobbies/Books/Music Serena & Lily Housewares Zulily General merchandise

© Narvar 2021 | Returns Benchmarks Report 27

 RETURN narvar.com

Meeting customers’ evolving needs Narvar Return capabilities

Remove friction from returns and exchanges with a beautifully-branded,
self-service solution that simplifies the experience for customers and creates
new opportunities to reduce costs and recapture revenue. Eligibility Reason Code
Enforcement Selection

● Provide an on-brand,
seamless and flexible returns
Label Printerless
experience Generation Returns
● Empower customers to help
themselves
● Build loyalty with proactive Accept Payment Return
for Label Tracking
return communications

Email Return
96% Communication Analytics
of customers who are satisfied with
the returns process said they’ll
purchase with the retailer again. Dynamic Return to 3rd
“The State of Online Returns”
Disposition Party Vendor
Narvar Consumer Report, 2019

28
Narvar is on a mission to simplify
the everyday lives of consumers.
Narvar is an intelligent customer experience platform that helps commerce companies simplify the
everyday lives of consumers. Serving over 800 retailers globally including Sephora, Patagonia,
Levi’s, Sonos, Warby Parker, Home Depot, LVMH, and L’Oréal, Narvar ensures every touchpoint
along the consumer purchase journey engages consumers and enables emotional
connections—from pre-purchase to in-store experiences and beyond. With customizable customer
messaging and tailored interfaces driven by unparalleled data intelligence, Narvar empowers
commerce brands to turn every touchpoint into an opportunity.

For more information, visit narvar.com.