In ecommerce, the sale is only half the battle. What happens after – the returns, retention, and loyalty journey – is where many brands either thrive or falter.

According to Loop Returns’ 2024 Winter Benchmark Report, industries perform very differently across these metrics. For example, apparel brands achieve an average retention rate of 23.2%. But how do other verticals measure up, and what can they teach us about turning returns into opportunities?

Here’s a deeper dive into the data, along with insights to help your brand set the bar even higher in 2025. 

The apparel dilemma: high returns, high stakes

For apparel brands, returns are an inescapable reality, with rates frequently exceeding 30%. One significant driver? Bracketing – the practice of shoppers buying multiple variations of the same item with the intention of returning all but one. While bracketing can feel like a form of insurance for the customer, it represents a costly challenge for brands.

Combating bracketing and other return issues hinges on transparency and innovation.

Brands are seeing success by: 

• Offering accurate sizing guides and virtual try-ons. 

• Using personalisation engines to recommend better-fitting items. 

• Leveraging tools to detect and mitigate return abuse (read more in Loop’s fraud report).

Despite these challenges, the sector achieves a respectable 23.2% retention rate, showing that customer loyalty can be preserved even in the face of frequent returns. 

Footwear: tackling sizing disparities

Footwear brands contend with many of the same hurdles as apparel, though with slightly better outcomes. Returns average 25%, largely driven by sizing disparities. A size eight in one brand may fit very differently from a size eight in another, frustrating customers and leading to returns.

To combat this, footwear brands are prioritising convenience. The report reveals that 65% of returns in this sector are now initiated online, with QR-based drop-off systems rapidly gaining popularity. This focus on simplicity and speed helps footwear brands retain customers even when returns occur.

The sector’s retention rate of 22.8% highlights the value of making the return process as seamless as possible. 

Accessories: the impulse buy problem 

Accessories brands face a unique challenge: impulse purchases. These often result in customers changing their minds after receiving the item or feeling that it doesn’t meet their expectations in person.

Returns in this vertical average 18%, with a retention rate of 20%. Brands in this space are seizing the opportunity to offer seamless exchanges, encouraging customers to find something they prefer and driving upsell value in the process. By focusing on creating an effortless exchange experience, accessories brands can transform a potentially lost sale into a better customer outcome. 

Home goods: quietly outperforming

The home goods sector is the standout performer in Loop’s benchmark report, achieving the lowest return rate at 12.5% and the highest retention rate at 30%. These impressive metrics reflect the more considered nature of home goods purchases, where impulse buying is less common.

However, the leading cause of returns – damaged or defective products – serves as a reminder of the importance of quality control. Brands in this sector have excelled by prioritising reliability and offering frictionless processes for dealing with issues like damage claims. These strategies build trust and encourage repeat purchases. 

What this means for your brand

Loop Returns’ benchmark data is a timely reminder of how different the post-sale journey can look across industries. While apparel and footwear face the challenge of subjective customer preferences, sectors like home goods show the value of quality and reliability in minimising returns and retaining customers.

But high return rates aren’t necessarily a disaster. As apparel demonstrates, retention strategies can offset even the highest return rates. The challenge lies in understanding your industry’s benchmarks and finding actionable ways to rise above them.

This report offers a unique chance for brands to compare their return data against industry benchmarks to see how they stack up. Are you leading the pack or falling behind? The insights within can help you take decisive steps to improve in the year ahead. 

How to exceed benchmarks in 2025

Benchmarking your brand’s performance is just the beginning. The real opportunity lies in learning from industry leaders and adapting their strategies to your own unique challenges. Loop Returns’ 2024 Winter Benchmark Report provides the insights and guidance to help your brand tackle returns, improve retention, and build stronger customer relationships.

Download the full report to see how your vertical stacks up and uncover actionable strategies to exceed expectations in 2025. 

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