Brands are losing revenue in online sales, often without realizing why, due to outdated return policies.
This is the major takeaway from “The Returns Revolt,” a recently released report.
The digital report, published by Calgary-based market research solution upstart Cashew, finds that ill-rendered return policies are “suppressing demand, eroding trust, and stopping shoppers from buying in the first place.”
Nearly half of shoppers say they hesitate to purchase if return shipping is not free, regardless of product or price, the data from Cashew shows.
Returns are therefore no longer a back-office cost, according to Addy Graves, chief executive officer of Cashew: Rather they are a “front-line conversion driver.”
“CMOs are optimizing ads and checkout flows while ignoring one of the biggest trust signals in commerce,” says Graves. “Returns don’t just impact margins after the sale; They determine whether the sale happens at all.”
One in four purchases fails because products do not meet expectations, according to the report.
In apparel, 74% of returns are due to fit alone, notes Graves.
Static size charts and generic visuals no longer meet shopper expectations as consumers increasingly demand guidance and confidence before clicking “buy.”
More than one-third of shoppers add items to their cart expecting to return them, the data shows—which means returns are simply a part of business.
But return rates can be lowered when products are presented as accurately and practically as possible, and when returns are free and easy so the customer feels no risk to purchase.
“High return rates aren’t about bad customers,” Graves says. “They’re signals that experiences weren’t designed for the people driving the most revenue.”
The takeaway for brand leaders is clear, says Graves: returns strategy is growth strategy.
Brands that “reduce friction, invest in sizing intelligence, and design for multi-generational shoppers” can both lower return rates and “unlock conversion, trust, and long-term loyalty,” according to the report.
Last year, Cashew emerged as the top-funded startup at DMZ’s Women Innovation Summit, securing $190,000 in investments from DMZ Ventures and The Firehood.
The AI-driven market research platform was one of four startups funded at the Toronto event in March.
Following that honour, Cash was in November named Best Enterprise Company at TechCrunch Disrupt 2025.
Most recently, CIX announced the recipients of its 2026 Startup Awards, recognizing 14 Canadian companies selected from more than 370 applicants and vetted by 94 leading North American investors—including Cashew.
Cashew will present live at the CIX Summit in March in Toronto.
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