ITF report ties part of retail’s $850B returns to freight

Returns are a big and costly ordeal. While a majority of retail focus on getting items to store shelves or doorsteps, what happens afterwards is increasingly becoming a top of mind issue for supply chain executives.

To put things in context, consumers were expected to return $849.9 billion in merchandise in 2025, according to the National Retail Federation. The projection, from NRF and Happy Returns’ 2025 Retail Returns Landscape, equals 15.8% of retail sales, down from $890 billion, or 16.9%, in 2024.

ITF Group, a third-party logistics provider based in Hazelwood, Missouri, argues retailers book part of that cost in the wrong department. Its Retail Reality Check Report, released Sept. 30, traces many returns to how a retailer vets and manages its carriers.

The report lands as retailers pay more to move holiday freight. Contract truckload rates reached a 52-week high of $2.72 a mile plus fuel on Oct. 9, up 18% year over year, according to FreightWaves SONAR data. ITF’s report contends a marginal discount from a lower-cost carrier is often a risk transfer. The cost moves into missed appointment windows that trigger chargebacks, cargo damaged in handling, and returns no one ties back to the freight decision.

This story was originally published by FreightWaves. Read the full story at FreightWaves →