Stricter return policies are eroding consumer trust in the U.S., according to a new analysis of millions of Trustpilot reviews, as retailers pull back on the generous return policies.
Reviews that mention “returns” had the largest drop in star reviews compared to any other topic, according to a new report from the review platform, which analyzed a proprietary dataset of over 4.5 million reviews last February. Such reviews usually see a drop of 1.69 stars.
“No operational factor has a greater impact on U.S. retail trust scores than the returns process,” the report read, calling it a “brand-defining moment that can alter a consumer’s loyalty permanently.”
Liberal return policies surged during the pandemic, with free return windows that can extend to as much as six months, as lockdown-weary shoppers drove an e-commerce boom.
There is, however, no such thing as a free lunch, and in retail’s case, the cost is just passed on to someone other than the consumer: may it be the retailer, a logistics provider, or in many cases with landfills, the environment.
Now consumers are starting to bear a share of the costs. Seventy-two percent of merchants have started charging for at least one return option in 2025, up from 66 percent the year before, according to a report from Happy Returns, a UPS company.
“We, consumers, have gotten used to the idea of free and easy returns and relatively long return windows,” Taylor Cunningham, vice president of US marketing at Trustpilot told Sourcing Journal. “So, as retailers deviate from that norm, it can really rub consumers the wrong way.”
The reviews tell different experiences about the current return policies. Trustpilot said the phrase “I will never shop here again” can often be found in reviews that mention restocking fees. The report also noted a “damaging pattern” of customers who paid for shipping insurance but were denied refunds because the courier said the item was already delivered.
AI customer service is also unpopular on Trustpilot. The platform reports that 60 percent of posts that mention the word “AI” have 1-star reviews, with customers saying they feel trapped “in automated loops” since they couldn’t talk to a human agent.
“What retailers need to understand is [how to balance] cost considerations and the scalability that gets unlocked with AI against the potential kind of loyalty or reputation risks if that AI is creating a poor consumer experience,” Cunningham said.
The research also reflected other findings about the U.S. retail industry that are worth of noting. For example, quiet luxury has gained popularity since 2023, largely thanks to millennials and Gen Zs who reject fast fashion and want to invest in timeless garments.
Last August also saw a surge in reviews for jeans, although the study was not sure if it was caused by Sydney Sweeney’s controversial American Eagle campaign, or by back-to-school shopping, which usually drives denim sales for that month.
