Highlights. eCommerce or online sales returns declined 20.8% from 2021 to 2022 while in-store returns increased 7.20%.

  • The average retail return rate is 16.6% for eCommerce and 16.4% for in-store purchases.
  • In 2022, consumers returned $212 billion in merchandise from online sales and $603 billion from in-store sales.
  • 10.8% of online retail sales returns and 10.3% of in-store retail returns are fraudulent.
  • During the holiday shopping season, retail return rates increase 8.48%.

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Bar Graph: Total Value of Retail Returns in Billions from 2017 ($351) to 2022 ($816) according to Statista

Retail Return Rates

The U.S. retail industry, including online and brick-and-mortar stores, transacted $4.95 trillion in sales in 2022.

  • The average retail return rate is 16.5%, down 0.72% year-over-year (YoY).
  • Consumers returned $816 billion in merchandise in 2022, up 7.2% YoY.
  • For every $100 in sales, consumers return $16.48 in merchandise.
  • 26% of all returned online sales that are returned to brick-and-mortar locations are fraudulent.
  • 58% of consumers purchase products in multiple sizes and return items that don’t fit.
  • Sizing is the primary reason for 42% of all retail returns.
  • 17% of returns are due to damage while 13% are due to inaccurate item descriptions.
Percentage of Annual Retail Return Dollars
Year Total Sales YoY Change
2022 16.5% -0.72%
2021 16.6% 56.6%
2020 10.6% 30.9%
2019 8.1% -19.0%
2018 10.0% 0.00%

eCommerce Return Rates

The dollar value of annual eCommerce returns increases each year.

  • 26.0% of retail return dollars are from items purchased online.
  • $212 billion or 16.4% of online sales revenue is lost to returns.
  • The dollar value of returned online merchandise declined $6 billion or 2.75% from 2021 to 2022.
  • 37% of eCommerce returns are returned through the carrier to mail back.
  • 20% of consumers are more likely to return products they purchased online as opposed to in-store purchases.

Bar Graph: Percentage of Retail Revenue Returned from 2017 (10.0%) to 2022 (16.5%) according to Statista

In-Store Return Rates

In-store purchases are more likely to be returned than online purchases.

  • 73.9% of retail return dollars are from items purchased in brick-and-mortar stores.
  • $603 billion or 16.5% of in-store sales revenue is lost to returns.
  • The dollar value of returned in-store merchandise declined $60 billion or 11.0% from 2021 to 2022.
  • 33% of consumers are more likely to return products they purchased in-store as opposed to online purchases.

Grouped Bar Graph: Total Value of Annual Retail Returns in Billions from 2021 and 2022 for in-store, online, and holiday segments according to the National Retail Federation

Consumer Return Rates

Consumers are more likely to return clothing than any other type of product; they are least likely to return computers.

  • 12% of consumers say they never return clothing.
  • 81% of consumers return clothing “sometimes” or “occasionally.”
  • 88% of consumers have returned clothing.
  • 70% of consumers report having returned an item because it didn’t fit.
  • The second-most common reason consumers give for returns is damaged or defective items (65%).
  • 8% of consumers have returned computers.

Grouped Bar Graph: Share of Annual Retail Sales Returned from 2021 and 2022 for in-store, online, and holiday segments according to the National Retail Federation

Return Fraud Rates

Clothing returns are the most likely to be fraudulent.

  • Fraudulent returns cost retailers $84.9 billion in 2022.
  • 10.4% of retail returns are fraudulent.
  • Online returns are 4.43% more likely to be fraudulent than in-store returns.
  • Brick-and-mortar stores lost $62.1 billion in 2022 to fraudulent returns.
  • Online retailers lost $22.8 billion to fraudulent returns in 2022.
  • An estimated 10.7% of online purchases returned in-store are fraudulent.
  • 8.6% of online purchases returned to non-store locations are fraudulent.
  • 50% of clothing returns are fraudulent.

Grouped Bar Graph: Share of Fraudulent Annual Retail Sales Returns from 2021 and 2022 for in-store, online, and holiday segments according to the National Retail Federation

Holiday Return Rates

U.S. retailers deal with a higher rate of returns during the holiday shopping season than they do throughout the year.

  • 17.9% of holiday purchases are returned.
  • $171 billion in holiday sales dollars are returned.
  • 10.1% of holiday sales returns are fraudulent.
  • Retailers lose $17.3 billion to fraudulent holiday returns.
  • 44% of retailers plan to hire more staff specifically to handle holiday returns.

National Map: Sales Tax Lost of Return Fraud in Millions by state according to the National Retail Federation

State-Level Return Rates

In most states, retail return processes include some sales tax revenue.

  • The average state’s retailers accepted approximately $16 billion in merchandise returns in 2022.
  • States lost an estimated $4.74 billion in sales tax to retail return fraud.
  • Hawaii retailers accept the highest rate of returns per consumer (i.e. the 18+ state population), processing $24,059* in returns for each permanent resident.
  • California retailers lose the most sales dollars to returns, processing $91 billion in returns.

*In this calculation, Hawaii’s consumer population does not include seasonal residents or tourists.

National Map: Average Annual Consumer Retail Return Value in Thousands by state according to the National Retail Federation

Alabama

Retail returns cost the State of Alabama $392 million less in lost sales tax compared to the average state.

  • At the average return rate, Alabama retailers accept an estimated $12.56 billion in annual returns.
  • Alabama retailers process $3,169 in returns per consumer over 12 months.
  • The State of Alabama loses $502 million in sales tax dollars to retail returns.
  • Fraudulent returns cost Alabama retailers an estimated $1.31 billion.
  • The State of Alabama loses $52.2 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Alabama and its retailers a combined $1.36 billion.

Alaska

The State of Alaska has no sales tax to lose to retail returns.

  • At the average return rate, Alaska retailers accept an estimated $2.11 billion in annual returns.
  • Alaska retailers process $3,794 in returns per consumer over 12 months.
  • Annual fraudulent retail returns cost Alaska retailers an estimated $220 million.

Arizona

Retail returns cost the State of Arizona $17.0 million less in lost sales tax compared to the average state.

  • At the average return rate, Arizona retailers accept an estimated $15.7 billion in annual returns.
  • Arizona retailers process $2,715 in returns per consumer over 12 months.
  • The State of Arizona loses an estimated $877 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Arizona retailers an estimated $1.63 billion.
  • The State of Arizona loses $91.2 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Arizona and its retailers a combined $1.72 billion.

Arkansas

Retail returns cost the State of Arkansas $368 million less in lost sales tax compared to the average state.

  • At the average return rate, Arkansas retailers accept an estimated $8.10 billion in annual returns.
  • Arkansas retailers process $3,448 in returns per consumer over 12 months.
  • The State of Arkansas loses an estimated $526 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Arkansas retailers an estimated $842 million.
  • The State of Arkansas loses $54.7 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Arkansas and its retailers a combined $897 million.

California

Retail returns cost the State of California $5.71 billion more in lost sales tax compared to the average state.

  • At the average return rate, California retailers accept an estimated $91.1 billion in annual returns.
  • California retailers process $2,984 in returns per consumer over 12 months.
  • The State of California loses an estimated $6.60 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost California retailers an estimated $9.47 billion.
  • The State of California loses $687 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of California and its retailers a combined $10.2 billion.

Colorado

Retail returns cost the State of Colorado $504 million less in lost sales tax compared to the average state.

  • At the average return rate, Colorado retailers accept an estimated $13.5 billion in annual returns.
  • Colorado retailers process $2,911 in returns per consumer over 12 months.
  • The State of Colorado loses an estimated $390 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Colorado retailers an estimated $1.40 billion.
  • The State of Colorado loses $40.6 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Colorado and its retailers a combined $1.44 billion.

Connecticut

Retail returns cost the State of Connecticut $301 million less in lost sales tax compared to the average state.

  • At the average return rate, Connecticut retailers accept an estimated $9.35 billion in annual returns.
  • Connecticut retailers process $3,229 in returns per consumer over 12 months.
  • The State of Connecticut loses an estimated $594 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Connecticut retailers an estimated $972 million.
  • The State of Connecticut loses $61.7 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Connecticut and its retailers a combined $1.03 billion.

Delaware

The State of Delaware has no sales tax.

  • At the average return rate, Delaware retailers accept an estimated $2.74 billion in annual returns.
  • Delaware retailers process $3,382 in returns per consumer over 12 months.
  • Fraudulent returns cost Delaware retailers an estimated $285 million.

District of Columbia

Retail returns cost D.C. $819 million less in lost sales tax compared to the average state.

  • At the average return rate, D.C. retailers accept an estimated $1.26 billion in annual returns.
  • Retailers process $2,294 in returns per consumer over 12 months.
  • D.C. loses an estimated $75.4 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost D.C. retailers an estimated $131 million.
  • D.C. loses $7.84 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of D.C. and its retailers a combined $138 million.

Florida

Retail returns cost the State of Florida $2.50 billion more in lost sales tax compared to the average state.

  • At the average return rate, Florida retailers accept an estimated $56.6 billion in annual returns.
  • Florida retailers process $3,154 in returns per consumer over 12 months.
  • The State of Florida loses an estimated $3.40 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Florida retailers an estimated $5.89 billion.
  • The State of Florida loses $353 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Florida and its retailers a combined $6.24 billion.

Georgia

Retail returns cost the State of Georgia $89.7 million more in lost sales tax compared to the average state.

  • At the average return rate, Georgia retailers accept an estimated $24.6 billion in annual returns.
  • Georgia retailers process $2,928 in returns per consumer over 12 months.
  • The State of Georgia loses an estimated $984 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Georgia retailers an estimated $2.56 billion.
  • The State of Georgia loses $102 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Georgia and its retailers a combined $2.66 billion.

Hawaii

Retail returns cost the State of Hawaii $205 million more in lost sales tax compared to the average state.

  • At the average return rate, Hawaii retailers accept an estimated $27.5 billion in annual returns.
  • Hawaii retailers process $24,059 in returns per consumer over 12 months.
  • The State of Hawaii loses an estimated $1.10 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Hawaii retailers an estimated $2.86 billion.
  • The State of Hawaii loses $114 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Hawaii and its retailers a combined $2.97 billion.

Idaho

Retail returns cost the State of Idaho $640 million less in lost sales tax compared to the average state.

  • At the average return rate, Idaho retailers accept an estimated $4.25 billion in annual returns.
  • Idaho retailers process $2,877 in returns per consumer over 12 months.
  • The State of Idaho loses an estimated $255 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Idaho retailers an estimated $442 million.
  • The State of Idaho loses $26.5 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Idaho and its retailers a combined $468 million.

Illinois

Retail returns cost the State of Illinois $1.04 billion more in lost sales tax compared to the average state.

  • At the average return rate, Illinois retailers accept an estimated $31.0 billion in annual returns.
  • Illinois retailers process $3,143 in returns per consumer over 12 months.
  • The State of Illinois loses an estimated $1.94 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Illinois retailers an estimated $3.22 billion.
  • The State of Illinois loses $201 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Illinois and its retailers a combined $3.42 billion.

Indiana

Retail returns cost the State of Indiana $215 million more in lost sales tax compared to the average state.

  • At the average return rate, Indiana retailers accept an estimated $15.8 billion in annual returns.
  • Indiana retailers process $3,011 in returns per consumer over 12 months.
  • The State of Indiana loses an estimated $1.11 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Indiana retailers an estimated $1.65 billion.
  • The State of Indiana loses $115 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Indiana and its retailers a combined $1.76 billion.

Iowa

Retail returns cost the State of Iowa $416 million less in lost sales tax compared to the average state.

  • At the average return rate, Iowa retailers accept an estimated $7.97 billion in annual returns.
  • Iowa retailers process $3,219 in returns per consumer over 12 months.
  • The State of Iowa loses an estimated $478 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Iowa retailers an estimated $829 million.
  • The State of Iowa loses $49.7 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Iowa and its retailers a combined $879 million.

Kansas

Retail returns cost the State of Kansas $476 million less in lost sales tax compared to the average state.

  • At the average return rate, Kansas retailers accept an estimated $6.43 billion in annual returns.
  • Kansas retailers process $2,864 in returns per consumer over 12 months.
  • The State of Kansas loses an estimated $418 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Kansas retailers an estimated $669 million.
  • The State of Kansas loses $43.5 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Kansas and its retailers a combined $713 million.

Kentucky

Retail returns cost the State of Kentucky $274 million less in lost sales tax compared to the average state.

  • At the average return rate, Kentucky retailers accept an estimated $10.3 billion in annual returns.
  • Kentucky retailers process $2,947 in returns per consumer over 12 months.
  • The State of Kentucky loses an estimated $620 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Kentucky retailers an estimated $1.08 billion.
  • The State of Kentucky loses $64.5 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Kentucky and its retailers a combined $1.14 billion.

Louisiana

Retail returns cost the State of Louisiana $403 million less in lost sales tax compared to the average state.

  • At the average return rate, Louisiana retailers accept an estimated $11.1 billion in annual returns.
  • Louisiana retailers process $3,132 in returns per consumer over 12 months.
  • The State of Louisiana loses an estimated $492 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Louisiana retailers an estimated $1.15 billion.
  • The State of Louisiana loses $51.2 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Louisiana and its retailers a combined $1.20 billion.

Maine

Retail returns cost the State of Maine $680 million less in lost sales tax compared to the average state.

  • At the average return rate, Maine retailers accept an estimated $3.90 billion in annual returns.
  • Maine retailers process $3,425 in returns per consumer over 12 months.
  • The State of Maine loses an estimated $214 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Maine retailers an estimated $405 million.
  • The State of Maine loses $22.3 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Maine and its retailers a combined $427 million.

Maryland

Retail returns cost the State of Maryland $15.2 million less in lost sales tax compared to the average state.

  • At the average return rate, Maryland retailers accept an estimated $14.7 billion in annual returns.
  • Maryland retailers process $3,041 in returns per consumer over 12 months.
  • The State of Maryland loses an estimated $879 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Maryland retailers an estimated $1.52 billion.
  • The State of Maryland loses $91.4 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Maryland and its retailers a combined $1.62 billion.

Massachusetts

Retail returns cost the State of Massachusetts $187 million more in lost sales tax compared to the average state.

  • At the average return rate, Massachusetts retailers accept an estimated $17.3 billion in annual returns.
  • Massachusetts retailers process $3,064 in returns per consumer over 12 months.
  • The State of Massachusetts loses an estimated $1.08 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Massachusetts retailers an estimated $1.79 billion.
  • The State of Massachusetts loses $112 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Massachusetts and its retailers a combined $1.90 billion.

Michigan

Retail returns cost the State of Michigan $545 million more in lost sales tax compared to the average state.

  • At the average return rate, Michigan retailers accept an estimated $24.0 billion in annual returns.
  • Michigan retailers process $3,028 in returns per consumer over 12 months.
  • The State of Michigan loses an estimated $1.44 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Michigan retailers an estimated $2.50 billion.
  • The State of Michigan loses $150 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Michigan and its retailers a combined $2.65 billion.

Minnesota

Retail returns cost the State of Minnesota $150 million more in lost sales tax compared to the average state.

  • At the average return rate, Minnesota retailers accept an estimated $15.2 billion in annual returns.
  • Minnesota retailers process $3,432 in returns per consumer over 12 months.
  • The State of Minnesota loses an estimated $1.04 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Minnesota retailers an estimated $1.58 billion.
  • The State of Minnesota loses $109 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Minnesota and its retailers a combined $1.69 billion.

Mississippi

Retail returns cost the State of Mississippi $329 million less in lost sales tax compared to the average state.

  • At the average return rate, Mississippi retailers accept an estimated $8.09 billion in annual returns.
  • Mississippi retailers process $3,577 in returns per consumer over 12 months.
  • The State of Mississippi loses an estimated $566 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Mississippi retailers an estimated $841 million.
  • The State of Mississippi loses $58.9 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Mississippi and its retailers a combined $900 million.

Missouri

Retail returns cost the State of Missouri $187 million less in lost sales tax compared to the average state.

  • At the average return rate, Missouri retailers accept an estimated $16.7 billion in annual returns.
  • Missouri retailers process $3,477 in returns per consumer over 12 months.
  • The State of Missouri loses an estimated $708 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Missouri retailers an estimated $1.74 billion.
  • The State of Missouri loses $73.5 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Missouri and its retailers a combined $1.81 billion.

Montana

The State of Montana has no sales tax.

  • At the average return rate, Montana retailers accept an estimated $3.11 billion in annual returns.
  • Montana retailers process $3,496 in returns per consumer over 12 months.
  • Fraudulent returns cost Montana retailers an estimated $323 million.

Nebraska

Retail returns cost the State of Nebraska $604 million less in lost sales tax compared to the average state.

  • At the average return rate, Nebraska retailers accept an estimated $5.29 billion in annual returns.
  • Nebraska retailers process $3,544 in returns per consumer over 12 months.
  • The State of Nebraska loses an estimated $291 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Nebraska retailers an estimated $550 million.
  • The State of Nebraska loses $30.2 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Nebraska and its retailers a combined $580 million.

Nevada

Retail returns cost the State of Nevada $289 million less in lost sales tax compared to the average state.

  • At the average return rate, Nevada retailers accept an estimated $8.84 billion in annual returns.
  • Nevada retailers process $3,554 in returns per consumer over 12 months.
  • The State of Nevada loses an estimated $606 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Nevada retailers an estimated $919 million.
  • The State of Nevada loses $63.0 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Nevada and its retailers a combined $982 million.

New Hampshire

The State of New Hampshire has no sales tax.

  • At the average return rate, New Hampshire retailers accept an estimated $4.84 billion in annual returns.
  • New Hampshire retailers process $4,235 in returns per consumer over 12 months.
  • Fraudulent returns cost New Hampshire retailers an estimated $503 million.

New Jersey

Retail returns cost the State of New Jersey $707 million more in lost sales tax compared to the average state.

  • At the average return rate, New Jersey retailers accept an estimated $24.2 billion in annual returns.
  • New Jersey retailers process $3,323 in returns per consumer over 12 months.
  • The State of New Jersey loses an estimated $1.60 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost New Jersey retailers an estimated $2.51 billion.
  • The State of New Jersey loses $166 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of New Jersey and its retailers a combined $2.68 billion.

New Mexico

Retail returns cost the State of New Mexico $620 million more in lost sales tax compared to the average state.

  • At the average return rate, New Mexico retailers accept an estimated $5.35 billion in annual returns.
  • New Mexico retailers process $3,237 in returns per consumer over 12 months.
  • The State of New Mexico loses an estimated $274 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost New Mexico retailers an estimated $557 million.
  • The State of New Mexico loses $28.5 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of New Mexico and its retailers a combined $585 million.

New York

Retail returns cost the State of New York $945 million more in lost sales tax compared to the average state.

  • At the average return rate, New York retailers accept an estimated $46.0 billion in annual returns.
  • New York retailers process $2,932 in returns per consumer over 12 months.
  • The State of New York loses an estimated $1.84 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost New York retailers an estimated $4.78 billion.
  • The State of New York loses $191 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of New York and its retailers a combined $4.97 billion.

North Carolina

Retail returns cost the State of North Carolina $240 million more in lost sales tax compared to the average state.

  • At the average return rate, North Carolina retailers accept an estimated $23.9 billion in annual returns.
  • North Carolina retailers process $2,842 in returns per consumer over 12 months.
  • The State of North Carolina loses an estimated $1.13 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost North Carolina retailers an estimated $2.48 billion.
  • The State of North Carolina loses $118 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of North Carolina and its retailers a combined $2.60 billion.

North Dakota

Retail returns cost the State of North Dakota $780 million less in lost sales tax compared to the average state.

  • At the average return rate, North Dakota retailers accept an estimated $2.30 billion in annual returns.
  • North Dakota retailers process $3,850 in returns per consumer over 12 months.
  • The State of North Dakota loses an estimated $115 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost North Dakota retailers an estimated $239 million.
  • The State of North Dakota loses $11.9 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of North Dakota and its retailers a combined $251 million.

Ohio

Retail returns cost the State of Ohio $623 million more in lost sales tax compared to the average state.

  • At the average return rate, Ohio retailers accept an estimated $26.4 billion in annual returns.
  • Ohio retailers process $2,871 in returns per consumer over 12 months.
  • The State of Ohio loses an estimated $1.52 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Ohio retailers an estimated $2.74 billion.
  • The State of Ohio loses $158 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Ohio and its retailers a combined $2.90 billion.

Oklahoma

Retail returns cost the State of Oklahoma $496 million less in lost sales tax compared to the average state.

  • At the average return rate, Oklahoma retailers accept an estimated $8.85 billion in annual returns.
  • Oklahoma retailers process $2,887 in returns per consumer over 12 months.
  • The State of Oklahoma loses an estimated $398 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Oklahoma retailers an estimated $921 million.
  • The State of Oklahoma loses $41.4 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Oklahoma and its retailers a combined $962 million.

Oregon

The State of Oregon has no sales tax.

  • At the average return rate, Oregon retailers accept an estimated $9.98 billion in annual returns.
  • Oregon retailers process $2,933 in returns per consumer over 12 months.
  • Fraudulent returns cost Oregon retailers an estimated $1.04 billion.

Pennsylvania

Retail returns cost the State of Pennsylvania $946 million more in lost sales tax compared to the average state.

  • At the average return rate, Pennsylvania retailers accept an estimated $30.7 billion in annual returns.
  • Pennsylvania retailers process $2,964 in returns per consumer over 12 months.
  • The State of Pennsylvania loses an estimated $1.84 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Pennsylvania retailers an estimated $3.19 billion.
  • The State of Pennsylvania loses $191 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Pennsylvania and its retailers a combined $3.38 billion.

Rhode Island

Retail returns cost the State of Rhode Island $716 million less in lost sales tax compared to the average state.

  • At the average return rate, Rhode Island retailers accept an estimated $2.55 billion in annual returns.
  • Rhode Island retailers process $2,868 in returns per consumer over 12 months.
  • The State of Rhode Island loses an estimated $179 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Rhode Island retailers an estimated $265 million.
  • The State of Rhode Island loses $18.6 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Rhode Island and its retailers a combined $284 million.

South Carolina

Retail returns cost the State of South Carolina $189 million less in lost sales tax compared to the average state.

  • At the average return rate, South Carolina retailers accept an estimated $11.8 billion in annual returns.
  • South Carolina retailers process $2,824 in returns per consumer over 12 months.
  • The State of South Carolina loses an estimated $706 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost South Carolina retailers an estimated $1.22 billion.
  • The State of South Carolina loses $73.4 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of South Carolina and its retailers a combined $1.30 billion.

South Dakota

Retail returns cost the State of South Dakota $771 million less in lost sales tax compared to the average state.

  • At the average return rate, South Dakota retailers accept an estimated $2.75 billion in annual returns.
  • South Dakota retailers process $3,978 in returns per consumer over 12 months.
  • The State of South Dakota loses an estimated $124 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost South Dakota retailers an estimated $286 million.
  • The State of South Dakota loses $12.9 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of South Dakota and its retailers a combined $299 million.

Tennessee

Retail returns cost the State of Tennessee $329 million more in lost sales tax compared to the average state.

  • At the average return rate, Tennessee retailers accept an estimated $17.5 billion in annual returns.
  • Tennessee retailers process $3,171 in returns per consumer over 12 months.
  • The State of Tennessee loses an estimated $1.22 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Tennessee retailers an estimated $1.82 billion.
  • The State of Tennessee loses $127 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Tennessee and its retailers a combined $1.95 billion.

Texas

Retail returns cost the State of Texas $2.99 billion more in lost sales tax compared to the average state.

  • At the average return rate, Texas retailers accept an estimated $62.1 million in annual returns.
  • Texas retailers process $2,752 in returns per consumer over 12 months.
  • The State of Texas loses an estimated $3.88 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Texas retailers an estimated $6.46 billion.
  • The State of Texas loses $404 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Texas and its retailers a combined $6.87 billion.

Utah

Retail returns cost the State of Utah $563 million less in lost sales tax compared to the average state.

  • At the average return rate, Utah retailers accept an estimated $6.83 billion in annual returns.
  • Utah retailers process $2,788 in returns per consumer over 12 months.
  • The State of Utah loses an estimated $331 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Utah retailers an estimated $710 million.
  • The State of Utah loses $34.4 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Utah and its retailers a combined $745 million.

Vermont

Retail returns cost the State of Vermont $766 million less in lost sales tax compared to the average state.

  • At the average return rate, Vermont retailers accept an estimated $2.13 billion in annual returns.
  • Vermont retailers process $4,004 in returns per consumer over 12 months.
  • The State of Vermont loses an estimated $128 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Vermont retailers an estimated $222 million.
  • The State of Vermont loses $13.3 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Vermont and its retailers a combined $235 million.

Virginia

Retail returns cost the State of Virginia $2.82 million more in lost sales tax compared to the average state.

  • At the average return rate, Virginia retailers accept an estimated $20.9 billion in annual returns.
  • Virginia retailers process $3,061 in returns per consumer over 12 months.
  • The State of Virginia loses an estimated $897 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Virginia retailers an estimated $2.17 billion.
  • The State of Virginia loses $93.3 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Virginia and its retailers a combined $2.26 billion.

Washington

Retail returns cost the State of Washington $249 million more in lost sales tax compared to the average state.

  • At the average return rate, Washington retailers accept an estimated $17.6 billion in annual returns.
  • Washington retailers process $2,866 in returns per consumer over 12 months.
  • The State of Washington loses an estimated $1.14 billion in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Washington retailers an estimated $1.83 billion.
  • The State of Washington loses $119 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Washington and its retailers a combined $1.95 billion.

West Virginia

Retail returns cost the State of West Virginia $623 million less in lost sales tax compared to the average state.

  • At the average return rate, West Virginia retailers accept an estimated $4.52 billion in annual returns.
  • West Virginia retailers process $3,176 in returns per consumer over 12 months.
  • The State of West Virginia loses an estimated $271 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost West Virginia retailers an estimated $470 million.
  • The State of West Virginia loses $28.2 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of West Virginia and its retailers a combined $498 million.

Wisconsin

Retail returns cost the State of Wisconsin $152 million less in lost sales tax compared to the average state.

  • At the average return rate, Wisconsin retailers accept an estimated $14.8 billion in annual returns.
  • Wisconsin retailers process $3,195 in returns per consumer over 12 months.
  • The State of Wisconsin loses an estimated $742 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Wisconsin retailers an estimated $1.54 billion.
  • The State of Wisconsin loses $77.2 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Wisconsin and its retailers a combined $1.62 billion.

Wyoming

Retail returns cost the State of Wyoming $818 million less in lost sales tax compared to the average state.

  • At the average return rate, Wyoming retailers accept an estimated $1.90 billion in annual returns.
  • Wyoming retailers process $4,215 in returns per consumer over 12 months.
  • The State of Wyoming loses an estimated $76.1 million in annual sales tax dollars to retail returns.
  • Fraudulent returns cost Wyoming retailers an estimated $198 million.
  • The State of Wyoming loses $7.91 million in sales tax dollars to retail return fraud.
  • Annual fraudulent retail returns cost the State of Wyoming and its retailers a combined $206 million.

These data and insights were compiled by the Capital One Shopping team based on publicly available data.

Sources

  1. National Retail Federation, Media Center
  2. Power Reviews, Consumer Survey: Returns in Retail
  3. Statista, Industry Overview
  4. Narvar, State of Returns: Finding What Fits
  5. U.S. Census Bureau, Population and Housing Unit Estimate Tables