Returns Are Rising Due to Failures in Product Info - Report

Why It Matters

Poor product data inflates return costs and damages brand loyalty, directly hitting retailer margins. Fixing data quality offers a high‑impact lever to reduce returns and boost customer confidence.

Key Takeaways

• Inaccurate product data drives 62% higher return likelihood
• US retail returns cost about $900 billion each year
• 43% of UK shoppers returned items because information was wrong
• 73% struggle to find all product information before purchase
• Accurate data improves conversion, loyalty, and margin protection

Pulse Analysis

The surge in online shopping and heightened price sensitivity have turned product returns into a strategic cost center for retailers. While many firms pour resources into faster, cheaper reverse‑logistics, they often overlook the upstream cause: poor product information. Inaccurate sizing charts, vague material descriptions, and low‑resolution images create a false sense of confidence that collapses at delivery, prompting costly returns and eroding brand equity. This dynamic is especially pronounced in mature markets where return rates hover around 17%, translating into nearly $900 billion in annual losses.

Consumer expectations now extend beyond price to transparency and detail. The Akeneo study reveals that 62% of shoppers are more likely to retain a purchase when product data is clear, while 73% admit they cannot locate essential information before buying. Detailed attributes—such as precise dimensions, fit guidance, sustainability credentials, and high‑quality imagery—serve as trust signals that reduce purchase anxiety. When these signals are missing or contradictory, shoppers either switch brands, delay decisions, or abandon carts altogether, directly impacting lifetime value and loyalty.

Retailers can mitigate these risks by investing in robust Product Information Management (PIM) platforms, leveraging AI to auto‑enrich listings, and enforcing strict data governance across channels. Consistent, accurate, and enriched product content not only lowers return rates but also fuels conversion, upsell opportunities, and brand credibility. As inflation pressures persist, the competitive edge will belong to those who turn product data into a strategic asset rather than a liability.