Christmas doesn't end at the tree — for many, it ends at the return counter.
Why it matters: Americans return tens of billions of dollars' worth of unwanted Christmas gifts every year, turning good intentions into one of retail's biggest annual money sinks.
- The post-Christmas return rush typically peaks in the days immediately after the holiday. Returns jump 25%–35% beginning Dec. 26 compared with earlier in the month, according to Adobe Analytics.
- The weeks-long surge, dubbed "Returnuary," extends well into January, keeping return counters and shipping networks busy.
Zoom in: The most unwanted and frequently returned gifts include:
- Clothing and shoes: Sweaters, socks (yes, socks again) and other wearables are easy to gift but hard to get right on size, fit and personal style.
- Accessories like hats, scarves and jewelry: Easy to buy, easy to miss the mark.
- Electronics and gadgets: Duplicates, defects or devices that don't match how people actually live.
By the numbers: 20%–25% of annual sales are expected to be returned in 2025 — representing roughly $1 trillion worth of merchandise, according to data from returns platform Seel, which factors in last holiday season's return surge.
- Holiday returns spike about 16% in November and December, when early shopping collides with last-minute buying, per Seel.
- The average returned item typically falls in the $100–$200 range, returns data firms estimate.
Between the lines: Many returned items never make it back onto store shelves.
- "In reality, most are never restocked because brands don't have the infrastructure to process them in a cost-effective way," Emily Hosie, founder and CEO of open-box marketplace REBEL, told Axios.
- That contributes to an estimated 8.4 billion pounds of returned goods ending up in landfills each year, Hosie said.
What they're saying: "The No. 1 reason for returns is that you got the wrong size," Bobby Ghoshal, CEO and co-founder of AI shopping platform Dupe.com, told Axios. "People are really particular about how their items fit."
- "If you're causing your daughter-in-law to run extra errands to the mall with three kids in tow to exchange a sweatshirt, she may not be as grateful as you would expect," Ghoshal said.
Yes, but: Traditional gift categories like toys and beauty products remain relatively stable after the holidays, Marty Bauer, marketing company Omnisend's e-commerce expert, told Axios.
- "That suggests most post-holiday returns come from rushed purchases rather than categories where shoppers spend more time choosing the right item," Bauer said.
What's next: Retailers are betting AI can shrink — but not eliminate — the volume of returns.
- 73% of consumers say AI will make them less likely to return products, compared to 69% last year, according to a Talkdesk holiday survey, as tools help shoppers make more confident choices before buying.
The bottom line: Unwanted gifts are a Christmas tradition of their own — but smarter tools may help keep a few more presents out of the return line.
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