Holiday returns have become one of the most critical pressure points in retail customer experience, and new research suggests shoppers are increasingly open to artificial intelligence stepping in to fix what is often a broken process. According to new survey data released by Ada, holiday returns are no longer an occasional inconvenience but a frequent and high-stakes interaction that can determine long-term brand loyalty.
The study shows that 55% of consumers have already made, or plan to make, a return following the holiday season, while 21% return items more than once a month. This frequency has elevated holiday returns from a back-office function to a core moment in the customer journey. When the process is slow, unclear, or costly, trust erodes quickly and brands feel the impact almost immediately.
While many shoppers report being somewhat satisfied with returns today, the margin for error is slim. Only 36% say they are very satisfied with the returns experience, indicating widespread frustration beneath the surface. The most common pain points include unexpected return fees, shipping inconveniences, and unclear return policies. During peak holiday periods, these issues create bottlenecks for customer support teams and amplify dissatisfaction at scale.
The consequences of poor execution are significant. More than half of consumers, 57%, say a bad returns experience would reduce their likelihood of purchasing from the same brand again, regardless of past loyalty. This underscores why holiday returns are increasingly viewed as a make-or-break moment for retailers competing on experience, not just price or product selection.
Shoppers are clear about what they want: speed, ease, and transparency. Self-service options are currently the most preferred method for handling returns, followed by in-person interactions. Although only 12% say chatbots are their preferred option today, attitudes shift dramatically when shoppers consider what AI could offer. Sixty percent say they would be likely to use an AI agent if it could instantly answer questions and process a return, signaling strong demand for fast and accurate resolution.
“Customers’ expectations are higher than ever, and brands are working to step up,” said Mike Murchison, CEO and co-founder of Ada. “Our research shows that what is most important to customers, above and beyond anything else, is to have a frictionless experience that results in a quick resolution. Agentic experiences are the fastest way to deliver on that.”
Trust remains the primary barrier to broader AI adoption. Some consumers worry AI will be less efficient than human agents, fail to understand their issue, or provide inaccurate information. However, most shoppers do not expect AI to replace humans entirely. Instead, many see AI as the first line of resolution. Thirty-five percent say they only want a human involved after one failed AI interaction, compared to just 31% who want immediate human support.
The findings point to a clear opportunity. With 45% of consumers already comfortable using AI to handle returns and another 29% neutral, retailers that invest in transparent, reliable AI-powered support can turn holiday returns into a differentiator rather than a liability. As seasonal spikes continue to grow, brands that reduce friction and deliver faster outcomes will be best positioned to protect loyalty and strengthen customer relationships.
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