How many Amazon orders get returned each year? (2025 data)

Amazon processes approximately 1.2-1.5 billion returned packages annually, representing a 5-15% return rate across most product categories. With Amazon delivering an estimated 4.8 billion packages globally in 2024, returns represent a significant operational challenge that costs the company billions in reverse logistics, processing fees, and lost inventory value. The introduction of new return fees in June 2024 signals Amazon’s strategic shift to reduce return volumes while maintaining customer satisfaction.

Numbers at a glance

• 1.2-1.5 billion packages returned to Amazon annually
• 5-15% average return rate across most categories
• $40-88 billion estimated annual cost of returns (first-party and marketplace combined)
• 16.9% average e-commerce return rate industry-wide (Amazon performs better)
• 39.2% increase in return rates from 2023 to 2024 across e-commerce
• June 2024 introduction of Amazon’s new Returns Processing Fee
• 60% of returns due to fit or quality issues
• 30% of returns from customers changing their minds

Amazon return volume: the numbers

Estimated annual return packages (1.2-1.5 billion packages)

Based on Amazon’s estimated 4.8 billion global package deliveries in 2024 and return rates between 5-15% across categories, Amazon likely processes between 1.2-1.5 billion returned packages annually. This figure includes both first-party Amazon inventory and third-party marketplace seller returns processed through Amazon’s fulfillment network.

The volume represents a massive logistical operation requiring dedicated reverse supply chain infrastructure, inspection facilities, and disposition channels. Amazon’s scale means even a modest 10% return rate translates to processing over 13 million returned packages per week.

Financial impact ($40-88 billion estimated)

Returns represent one of Amazon’s largest operational expenses. Industry estimates suggest Amazon’s total return costs—including first-party inventory losses, third-party marketplace processing, reverse logistics, and disposition—range between $40-88 billion annually. This includes:

• Reverse shipping and logistics costs
• Inspection and processing labor
• Inventory write-downs and liquidation losses
• Storage and handling expenses
• Customer service and administrative overhead

Methodology behind the calculations

These estimates triangulate several data sources: Amazon’s reported package delivery volumes, industry-standard return rate benchmarks, and financial disclosures from Amazon’s logistics operations. The wide range reflects uncertainty around Amazon’s actual return rates, which vary significantly by product category and aren’t publicly disclosed in detail.

Amazon’s return rate by category

Overall return rate (5-15% average)

Amazon’s return rates typically fall between 5-15% across most categories, performing better than the industry average of 16.9%. This advantage stems from Amazon’s sophisticated product recommendation algorithms, detailed customer reviews, and extensive product information that helps customers make informed purchasing decisions.

High-return categories

Clothing and apparel represent Amazon’s highest return category, with rates often exceeding 20-30% due to sizing and fit issues. Electronics follow with return rates around 15-25%, primarily driven by compatibility issues, defects, or customers changing their minds about technical specifications.

Jewelry and accessories also see elevated return rates due to appearance expectations not matching reality, while home and garden items face returns when products don’t fit spaces or meet aesthetic expectations.

Low-return categories

Books and media maintain some of the lowest return rates at 2-5%, as these products have clear descriptions and meet customer expectations consistently. Consumables like food, health products, and household essentials also see minimal returns due to their practical nature and repeat purchase patterns.

How Amazon compares to industry standards

E-commerce average (16.9% return rate)

Amazon’s 5-15% return rate significantly outperforms the industry average of 16.9% reported by the National Retail Federation in 2024. This competitive advantage reflects Amazon’s investment in product data quality, customer review systems, and fulfillment accuracy.

Brick-and-mortar comparison (8.89%)

While Amazon’s return rates exceed traditional retail’s 8.89% average, the gap has narrowed as Amazon improves product presentation and customers become more comfortable with online purchasing decisions. The convenience of Amazon’s return process also influences customer behavior differently than in-store purchases.

Amazon’s competitive advantage

Amazon’s return rate advantage stems from several factors: superior product search and recommendation algorithms, comprehensive customer review systems, detailed product specifications, and high fulfillment accuracy. The company’s scale also enables sophisticated fraud detection to prevent return abuse.

What happens to Amazon returns

Resale programs (Warehouse Deals, Amazon Renewed)

Amazon Warehouse Deals offers returned items in “Used – Very Good” or similar conditions at discounted prices. Items undergo inspection and testing before resale, with clear condition descriptions for customers. Amazon Renewed focuses on refurbished electronics and other technical products that meet specific quality standards.

Donation programs (Good360 partnership)

Amazon partners with Good360 and other nonprofits to donate returned items that can’t be resold but remain useful. This includes clothing, household goods, and educational materials that benefit communities while reducing waste.

Liquidation and secondary markets

The majority of returns that can’t be resold through Amazon’s channels are sold in bulk to liquidation companies. These firms purchase pallets of returned merchandise for resale through discount retailers, online auctions, and secondary markets.

The cost of returns to Amazon

Logistics expenses

Amazon’s reverse logistics network requires dedicated infrastructure for processing returns. This includes transportation costs to move packages from customers back to fulfillment centers, specialized sorting and inspection facilities, and inventory management systems to track returned products through disposition channels.

Processing and handling costs

Each returned item requires individual inspection, testing, and categorization. Labor costs for this processing, combined with storage expenses while items await disposition, represent significant ongoing operational expenses that scale with return volume.

Environmental impact

Returns generate substantial environmental costs through additional packaging, transportation emissions, and waste when items can’t be resold. Amazon has invested in sustainability initiatives to reduce these impacts, including improved packaging and energy recovery programs for unsaleable returns.

Factors driving Amazon return rates

Product categories and return likelihood

Certain product categories inherently drive higher return rates. Apparel faces sizing challenges, electronics encounter compatibility issues, and home goods may not match customer spaces or expectations. Amazon’s category-specific return thresholds introduced in 2024 reflect these varying risk profiles.

Customer behavior and easy return policies

Amazon’s customer-friendly return policies, including free return shipping for many items and extended return windows, encourage purchases but also enable higher return rates. The convenience of returns reduces purchase hesitation but increases the likelihood customers will return items that don’t perfectly meet expectations.

Seasonal variations

Return rates spike during holiday seasons, particularly in January following Christmas purchases. Gift returns, sizing issues with clothing gifts, and post-holiday buyer’s remorse contribute to seasonal return volume fluctuations that strain Amazon’s processing capacity.

Amazon’s strategy to reduce returns

Prevention through better product information

Amazon continuously improves product listings with enhanced images, detailed specifications, size guides, and customer Q&A sections. Machine learning algorithms analyze return patterns to identify products needing better descriptions or additional information to reduce return likelihood.

Try before you buy programs

Amazon’s Prime Try Before You Buy program allows customers to order multiple sizes or styles, keeping only what they want and returning the rest. While this increases short-term return volume, it improves customer satisfaction and reduces future returns by helping customers find better fits.

Return fee implementation (2024)

The June 2024 introduction of Returns Processing Fees for products exceeding category-specific return thresholds represents Amazon’s most direct approach to reducing returns. By charging sellers for high-return products, Amazon incentivizes better product descriptions, quality control, and customer education.

Future trends and predictions

Expected growth in return volumes

As e-commerce continues growing and Amazon expands internationally, absolute return volumes will likely increase even if return rates remain stable or improve slightly. The company’s focus on same-day and next-day delivery may also influence return behavior as customers feel more comfortable making quick purchase decisions.

Technology solutions

Amazon is investing in augmented reality try-on experiences, improved size recommendation algorithms, and AI-powered product matching to help customers make better initial purchase decisions. These technologies aim to reduce returns by improving the accuracy of customer expectations.

Sustainability initiatives

Environmental concerns are driving Amazon toward more sustainable return processing, including improved packaging to reduce return damage, local processing centers to minimize transportation, and enhanced donation and recycling programs to reduce waste from unsaleable returns.

Sources & methodology

• National Retail Federation — 2024 retail return statistics and industry benchmarks
• Amazon Investor Relations — Financial disclosures and operational metrics
• Statista E-commerce Statistics — Industry return rate data and forecasts
• Capital One Shopping Research — Package delivery and return volume analysis
• CNBC Business Analysis — Amazon return policy changes and financial impact