Retailers Cut Return Costs by Auditing Carrier Quality
Tracking transportation performance helps retailers lower product damage and reduce overall return-related losses.
Updated on Oct. 15, 2026 in Transportation
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A new report from the Missouri-based ITF Group highlights the correlation between transportation handling and retail return rates. Freight operators are increasingly tasked with bridging the gap between logistics performance and damaged goods to mitigate significant annual losses.
Why it matters
Retail return departments and freight management often operate in silos, preventing companies from identifying how poor carrier performance contributes to damaged products and financial loss. Addressing this link is critical for operators looking to reduce the costs associated with the 15.8% of retail sales currently returned.
Retailers faced $849.9 billion in merchandise returns in 2025, which accounted for 15.8% of total retail sales. While 9% of those returns were classified as fraudulent, ITF Group has achieved a 0.004% in-transit damage rate by implementing enhanced controls across its 100,000 annual loads.
The players
ITF Group
A Missouri-based logistics provider that coordinates over 100,000 annual freight loads using a network of 65,000 vetted carriers.
The details
Retailers are beginning to audit the link between carrier performance and return rates to uncover hidden handling failures. By analyzing transit data alongside return patterns, businesses can isolate carriers whose handling contributes to damaged goods. ITF Group, which coordinates 65,000 vetted carriers, successfully utilized enhanced operational controls to reduce fraud-related incidents and overall exposure by approximately 90%.
Timeline
2025: Merchandise returns totaled $849.9 billion.
Q4 2026: Retailers evaluate carrier performance ahead of peak season.
Market Landscape
The retail sector has historically treated freight logistics and return management as entirely independent cost centers. Integrating transportation data into return audits marks a strategic departure from this siloed norm to better capture hidden costs.
Operators should review their return logs to identify patterns of damage that correlate with specific carrier performance metrics. Use the upcoming Q4 peak season to tighten handling controls and reduce unnecessary return overhead.
The takeaway
Operators must integrate their return data with freight performance logs to stop avoidable revenue loss. Closely monitoring in-transit damage rates allows businesses to hold carriers accountable for product quality before goods reach the customer.
Further reading
For more information on logistics oversight, visit Transportation.
Source note: This article includes information reported by Supplychain247.
Live Poll
Should retailers prioritize carrier safety and damage records over lower shipping rates?
