Returns continue to be a thorny issue for online retailers, but they could provide an opportunity to create brand loyalty for customers. Retailers estimate that 15.8% of their annual sales will be returned this year, totaling $849.9bn, according to the 2025 Retail Returns Landscape report released today by the National Retail Federation and Happy Returns, a UPS company. That compares to last year’s total, which was $890bn, or 16.9% of sales. While overall return rates are somewhat steady, some areas are facing more pressure than others. According to the report, an estimated 19.3% of online sales will be returned in 2025. In addition, as Gen Z’s influence grows, so does their impact on returns. On average, those between the ages of 19 and 30 made 7.7 returns of online purchases in the last 12 months, more than any other generation.