Top 10 Lessons From Black Friday Returns That Can Shape 2025 Strategy

Black Friday 2024 didn't end at checkout—it carried into December as returns poured back to retailers. While consumers celebrated finding deals on $10.8 billion in online sales (Adobe Analytics), a parallel story was unfolding behind the scenes. The holiday shopping surge generated a massive wave of returns that would ultimately reveal which retailers were truly prepared for the complete customer journey.

U.S. retail returns in 2024 hit nearly $890 billion according to the National Retail Federation, representing 16.9% of all sales—up from 14.5% the previous year. Black Friday and the subsequent holiday period contributed a major share of this volume, with retailers expecting returns to spike ~17% above annual averages during peak season.

But here's the critical insight that forward-thinking retailers discovered: returns aren't just a cost to minimize—they're a critical feedback loop. The lessons from Black Friday 2024 can help retailers sharpen their strategy for 2025, transforming potential liabilities into competitive advantages through better customer experience, operational efficiency, and strategic insights.

Lesson 1: Returns Start at Checkout

The most expensive returns are the ones that never should have happened. Black Friday 2024 revealed that a large share of returns occur because items don’t meet customer expectations—issues like vague descriptions, unclear photos, or poor sizing information.

The retailers with the lowest return rates invested heavily in clear product descriptions, comprehensive sizing guides, and realistic delivery expectations. Companies using AI-powered size recommendation technology reported measurable decreases in sizing-related returns, while fashion retailers implementing AR virtual try-on saw reductions in size-related returns, addressing the 30–45% of returns linked to fit and sizing issues.

Prevention technology proves surprisingly effective. Enhanced product information—detailed descriptions, high-quality images, and integrated customer reviews—directly impacts return rates. Since around 63% of consumers bracket (buy multiple sizes intending to return some), smart retailers are implementing fit guarantee programs and size prediction algorithms that help customers make better initial decisions.

The takeaway: every dollar invested in better product presentation and customer education at checkout saves multiple dollars in returns processing costs while improving customer satisfaction.

Lesson 2: Easy Returns Drive Loyalty

Perhaps the most counterintuitive lesson from Black Friday 2024: companies with the most transparent, customer-friendly returns policies saw the highest loyalty rates, even when those policies appeared more expensive on the surface.

Customers who experience a smooth return process are significantly more likely to shop again. Studies show ~90% of consumers are more likely to buy again if returns are easy, while 76% consider free returns a key factor when choosing where to shop. Past surveys also suggest that brand transparency strongly correlates with loyalty, reinforcing the value of clarity in returns.

Zappos continues to prove this philosophy works at scale, maintaining a reported 35% return rate while achieving around 75% of revenue from repeat customers. Their approach of treating returns as marketing investments rather than operational costs has created a customer base with significantly higher lifetime value.

Carriyo's branded returns portal enables retailers to provide this frictionless experience while maintaining operational control. The platform's customizable interface ensures returns feel like a natural extension of the shopping experience rather than a separate, potentially frustrating process.

Lesson 3: Communication is Half the Battle

Anxiety rises when customers don't know if their return has been received or processed. Black Friday 2024 demonstrated that strategic communication timing transforms customer relationships and reduces support burden.

SMS remains powerful: text messages achieve extremely high open rates (often cited around 98%) compared to ~20% for email, with many consumers preferring text for return and refund updates. Surveys indicate strong customer appetite for SMS, WhatsApp, and other instant notifications, reflecting the shift toward real-time communication.

The most successful retailers implement multi-channel notification systems that support email, SMS, WhatsApp, and in-app notifications based on customer preferences. Real-time tracking updates via SMS reduce customer anxiety and can cut customer service inquiries by up to 30%.

Proactive return status updates eliminate "Where Is My Order" (WISMO) calls before they happen. Loop merchants reported saving an estimated $8.8 million in customer service time over 12 months through communication strategies that anticipated customer questions before they arose.

Lesson 4: Mobile Returns Experience Matters

Around 55–58% of U.S. Black Friday online purchases were made on smartphones in 2024 (globally, mobile shares were even higher). Returns should be just as mobile-friendly. The mobile commerce surge revealed that returns processing optimization isn't just about customer convenience—it’s about operational efficiency at scale.

Mobile apps drive higher engagement than mobile websites, with app users interacting with returns flows more quickly than web-based users. Companies with mobile-optimized returns workflows reported operational improvements, including cost savings and faster processing.

QR code technology has reached mainstream adoption, with ~89 million Americans scanning QR codes regularly. Major carriers now offer label-free returns services that eliminate printing requirements entirely. QR code returns provide clear sustainability benefits by reducing paper usage while delivering faster processing times through instant digital label generation.

Mobile-optimized portals and notifications aren't just nice-to-have features—they're operational necessities. 84% of customers are more likely to shop with retailers offering no-box/no-label returns, making mobile optimization a competitive requirement for 2025.

Lesson 5: Automating Returns Saves Costs

Manual return workflows become bottlenecks during peak volume periods like post-Black Friday. The automation revolution in returns management reached critical mass during 2024, with businesses increasingly integrating AI solutions into their logistics operations.

The financial impact is substantial: merchants using automated returns platforms like Loop reported saving $2,500 per 1,000 returns processed and $8.8M in CX time across a year.

AI-powered disposition technology automatically determines whether returned items should be restocked, refurbished, or recycled, eliminating the manual decision-making bottleneck that traditionally slowed processing. Companies leveraging machine learning in this way report faster order processing and stronger profit recovery.

Carriyo's automated RMA generation and label creation eliminates routine manual tasks while maintaining the flexibility to handle exceptions. The platform's workflow orchestration ensures consistent processing while freeing staff to focus on customer-facing activities that create value.

Lesson 6: Returns Data = Inventory Insights

High return rates highlight mismatched stock, poor descriptions, or quality issues that smart retailers use to drive product development and inventory planning decisions. The $890 billion in total returns processed during 2024 contains patterns that forward-thinking companies are mining for competitive advantage.

Return reason analysis reveals specific improvement opportunities. Apparel leads return categories at ~20–24%, followed by electronics at ~18% and shoes at ~18%. Beauty products return at ~4–5%, suggesting successful strategies in that category that could be adapted elsewhere.

Seasonal patterns provide predictive value for inventory and staffing decisions. Returns processing typically surges in the December 26–January 10 period, forcing retailers to prepare capacity. Companies that anticipate these patterns report smoother operations and higher customer satisfaction.

Feeding return data back into product development, merchandising, and supply chain planning creates continuous improvement cycles. Modern analytics platforms transform this data into actionable insights, enabling retailers to identify trends, predict return likelihood, and optimize operations based on real-time intelligence.

Lesson 7: Sustainability Counts

Returns often go to landfill, leading to customer frustration and environmental waste. The intersection of sustainability and returns management has evolved beyond corporate responsibility into competitive advantage, with many consumers reporting they are willing to pay more for sustainable products and services.

Smart retailers are implementing circular economy practices that transform potential waste into revenue streams. Patagonia's Worn Wear program has saved thousands of items from waste while creating a new revenue channel. REI's Used Gear platform has diverted equipment from landfills while generating loyalty through resale credit systems.

The U.S. online fashion resale market is expected to surpass $30 billion by 2025, demonstrating the business opportunity embedded in sustainable returns practices. Refurbishment programs for electronics also deliver strong environmental benefits, from cutting CO₂ emissions to saving water and raw materials.

Resale, refurbishment, and eco-friendly returns policies can turn waste into loyalty while meeting growing customer expectations for environmental responsibility. AI-powered disposition technology optimizes these decisions automatically, ensuring the most sustainable and profitable outcome for each returned item.

Lesson 8: Carrier Choice Impacts Returns

Partnering with multiple carriers improves return speed and cost optimization. Most retailers now offer multiple return methods, recognizing that different customer segments and return types require different solutions.

Multi-carrier approaches prevent over-reliance on single providers while enabling geographic optimization. Different carriers excel in specific regions or service types, allowing retailers to match return requirements with optimal solutions. Volume consolidation strategies that combine returns with forward deliveries can reduce costs significantly.

Drop-off location strategies have become increasingly sophisticated. Buy Online, Return In-Store (BORIS) remains a leading return path, and many customers make incremental purchases during return visits. Smart retailers are expanding access through partnerships: UPS AccessPoints, Amazon Hub Lockers, and other parcel networks provide 24/7 accessibility.

Carriyo's multi-carrier integration provides unified API connectivity to diverse carrier networks, enabling single integration point access with real-time rate shopping and automated carrier selection that optimizes decisions based on current rates, performance metrics, and capacity availability for both outbound and inbound flows.

Lesson 9: Returns are a Marketing Opportunity

Smart retailers use return touchpoints to upsell, cross-sell, or reinforce brand trust. The most successful retailers of 2024 discovered that returns could function as marketing investments rather than operational costs.

Returns experience directly influences future purchase decisions, making this touchpoint critical for retention and growth. Zappos continues to lead this philosophy, treating their high return rate as a customer acquisition cost that generates repeat revenue.

Progressive retailers are offering exchange incentives that retain revenue while improving customer satisfaction. When exchanges are incentivized, many customers choose them over refunds, keeping revenue in-house.

In-store return programs create additional marketing opportunities. Studies show a significant portion of customers make additional purchases during return visits, transforming potentially negative interactions into revenue-generating opportunities. Including personalized offers or loyalty points during returns turns operational costs into customer acquisition investments.

Smart retailers train staff to view returns as sales opportunities while maintaining customer-first service that builds long-term loyalty. The key is positioning returns as part of the customer journey rather than its end.

Lesson 10: Returns Prevention is Still the Goal

Investing in better product imagery, AI sizing tools, and pre-purchase education lowers return rates. The most cost-effective returns strategy is preventing unnecessary returns through better customer education and technology assistance.

AI-powered personalization and product recommendations reduce the likelihood of unsuitable purchases, while virtual try-on technology addresses the 30–45% of returns linked to sizing and fit issues. AI-driven retailers saw higher conversion rates during Black Friday 2024, suggesting that better matching between customer preferences and products reduces both returns and improves initial sales efficiency.

Since many returns stem from misaligned expectations, investments in detailed product descriptions, high-quality images, and customer review integration yield measurable return rate reductions. Fashion retailers using AR technology report reductions in size-related returns through virtual fitting capabilities.

Customer education plays an important role as well. Size recommendation technology and fit guarantee programs address the growing trend of bracketing, where consumers buy multiple sizes with the intent to return some. While this behavior appears profitable short-term, it creates operational costs and customer friction that prevention technology can eliminate.

The best return is the one that never happens. The most sophisticated prevention strategies combine multiple approaches: AI-powered recommendations, enhanced product visualization, customer education, and predictive analytics that identify and address issues before they result in returns.

Case Study: Turning Returns into Repeat Customers

Amazon's strategic approach exemplifies transformation through systematic improvement. Their evolving returns fee structures target high-return categories while maintaining customer satisfaction through automated "keep-it" policies for low-value items. In 2024, Amazon also began adding warning labels on frequently returned items, helping customers make better decisions upfront.

Target's omnichannel strategy showcases integration benefits. Their ~1,900+ stores serving as fulfillment and returns centers create operational efficiency while providing customers multiple convenient return options. Same-day services and Drive Up returns integration demonstrate how returns can enhance rather than complicate the customer experience.

A composite example based on industry best practices shows the potential: retailers implementing streamlined returns with comprehensive automation and customer communication see faster processing times, lower operational costs, and increases in repeat purchases post-return. These improvements compound over time, creating sustainable competitive advantages.

The quantified results speak clearly: customer-centric companies consistently outperform peers on profitability and shareholder returns, and the returns experience is a key driver of whether customers come back.

Preparing for Black Friday 2025

Audit return policies now to ensure they align with customer expectations and competitive standards. With transparency and ease at the top of customer priorities, policy clarity is essential for acquisition and retention.

Automate communication and workflows to handle holiday volume surges without compromising customer experience. Real-time tracking capabilities and proactive communication strategies will be table stakes for 2025, while mobile-optimized returns workflows become operational necessities.

Reframe returns from cost center to loyalty driver by implementing branded returns experiences, exchange incentive programs, and sustainable disposition strategies that create value rather than simply processing costs.

Technology infrastructure should emphasize integration and scalability. Returns management platforms that provide branded customer experiences, automated workflow orchestration, and comprehensive carrier integration enable retailers to implement sophisticated strategies without overwhelming operational teams.

The companies that begin implementing these changes now will be positioned to dominate Black Friday 2025, while those that wait for the next holiday rush will find themselves playing catch-up in an increasingly competitive environment.

Conclusion

Returns will always be part of Black Friday—but they don't have to be a liability. The 2024 lessons show that transparency, automation, and customer-first policies turn returns into competitive advantage rather than operational burden.

The retailers succeeding in this new environment share a common understanding: returns are conversations, not transactions. Every return represents a customer reaching out for help, providing feedback about products or experiences, and offering the company an opportunity to demonstrate the kind of service that creates lifetime loyalty.

With Carriyo's comprehensive returns management platform, retailers can step into 2025 with a returns strategy that protects margins and grows loyalty. The platform's branded customer experiences, automated workflow orchestration, multi-carrier integration, and real-time communication capabilities enable the strategic approaches that separate industry leaders from their competition.

The transformation of returns management from operational necessity to strategic advantage represents one of the most significant opportunities in retail operations. The question isn't whether to invest in returns excellence—it's how quickly retailers can implement the strategies that will define success in 2025 and beyond.

If you’re ready to apply these 10 Black Friday lessons to your 2025 strategy, contact Carriyo’s sales team or book a demo today.