Blue Yonder recently published the 2026 Consumer Retail Returns Survey and the results highlight the evolving nature of consumer behavior. After polling more than 5,000 consumers across the United States, Australia, France, Germany, and the United Kingdom, we can see a growing impact of the entire returns process on consumer loyalty.
The report revealed that 46% of United States shoppers who made a purchase based on an AI recommendation returned the product in the last year. 82% of U.S. shoppers said that they would shop less (or stop shopping entirely) at retailers that limit their ability to make returns.
With Gen Z and Millennials reporting an unwillingness to continue supporting retailers with difficult returns policies, and an increased use of AI recommendations by retailers, it’s easy to see the potential disruption to inventory ahead. There’s also an opportunity for retailers to gain a competitive advantage. To do that, here are three strategies to consider:
1. Data is at the center of returns and inventory efficiency
“Shoppers are taking AI’s advice faster than retailers are getting ready for it, and nearly half of them are sending something back,” said Duncan Angove, CEO of Blue Yonder. “That’s not really an AI problem. It’s a data problem.”
AI-powered software cannot slip into legacy systems and work at its full potential. Adopting AI and switching to cognitive solutions requires a change in operational philosophy. That philosophy requires transparent, end-to-end access to data for each supply chain function and its tools.
As Angove put it, “An AI assistant is only as good as the product information it can find, and most product data was written for a search bar, not for a machine suggesting products for someone. When what arrives doesn’t match what the shopper expected, it goes back in the box.”
Retailers need to reorganize their data so AI agents can quickly understand which consumers are a good fit for each product, and which consumers are most likely to return it or keep it. The more organized, accurate, and comprehensive the data, the more likely shoppers will be to keep their suggested products and remain loyal to your brand.
2. Improving the returns process will prevent a loss in consumers
On customer loyalty, the 2026 Consumer Retail Returns Survey found that a staggering 82% of U.S. respondents would shop less often or stop shopping entirely at a retailer that limits their ability to return due to high return frequency. By far, U.S. customers have the strongest opinions about returns restrictions.
The instinct to restrict customers who return a lot makes sense when you don’t have a clear picture of their shopping habits. But today’s solutions can give retailers a much more nuanced understanding of who is making returns.
As Angove put it, “Some of your most frequent returners are your best customers. The challenge is telling the difference between a shopper who abuses returns and a loyal customer who simply returns a lot. That takes systems that can set the right policy for each customer and handle every return as quickly and cheaply as possible.”
Retailers must leverage the data available to them to create a customer experience that fits the shopping habits of each customer. Cognitive solutions make these profiles easy to create and maintain. As the consumer base becomes dominated by Gen Z, custom experiences, particularly around returns, will be critical to building brand loyalty and growing your business.
3. Networked supply chain solutions are non-negotiable now
Although consumers clearly want free and easy returns, the survey showed they’re willing to accept incentives. 32% of respondents indicated that free returns shipping is the most important factor when returning an item. Fast or instant refunds (30%) are a close second. Consumers also accept “keep it” returns and alternative incentives in exchange for not returning an item.
For retailers, each new returns option adds complexity that needs to be monitored and understood by the entire supply chain. As such, networked solutions should now be considered a requirement for supply chain companies. Without a single source of truth for each function of the supply chain, companies put themselves at risk for extra returns costs, added inventory sitting in warehouses, and an unhappy consumer base.
With complete transparency, retailers will have a much more accurate understanding of what product recommendations are working, which consumers are most likely to return a product but continue to shop, and who will take advantage of the returns policy. Accurate data leads to better predictions, lower costs, and an overall better experience for your workforce and consumer base.
