Why do people return products? And more importantly, what makes them more likely to keep them?

Shopping is a decision-making process influenced by emotions, expectations, and cognitive biases. When customers feel confident about their choice, they’re more likely to keep their purchase. But if doubt, regret, or unexpected friction creep in, the chances of a return skyrocket.

So, what makes customers second-guess their purchases? Understanding these psychological principles can help you reduce your store’s return rates and build stronger customer relationships.

5 Psychological Factors That Influence Returns

Understanding customer psychology can help cut down return rates. Here are five key psychological effects that can affect whether a customer keeps or returns their purchase:

1. The Endowment Effect: Why People Keep Things They “Own”  

People naturally value things more once they feel like they own them—even if it’s just a recent purchase. This is called the Endowment Effect, and it’s why customers hesitate before returning something they’ve already “claimed.”  

Have you ever bought something, considered returning it, but then found yourself justifying why it was worth keeping? Maybe you tried on a jacket a few times and started to feel like it was already part of your wardrobe, or used a new gadget once and felt reluctant to part with it – that’s the Endowment Effect in action.

Once customers interact with a product, they start to see it as theirs, making the idea of returning it feel like losing something they already possess.

How to Make Customers Feel Attached to Their Purchase  

• Get them to use it ASAP – Post-purchase emails with setup guides, styling ideas, or product challenges encourage customers to engage with their purchase instead of regretting it.  
• Make the product feel personal – Customization (monograms, color choices, engraving) strengthens emotional attachment. If it feels unique, it’s harder to send back.  
• Leverage a return coverage model – ReturnGO’s Return Guard lets customers buy return coverage at checkout. When they do, they’ve already mentally committed to the purchase. They’re less likely to return it just because they changed their mind. 

2. Choice Overload: Too Many Options Lead to More Returns  

Too many choices = decision paralysis. When customers feel overwhelmed by too many options, they’re more likely to second-guess their choice and return items.

This is especially true in online shopping, where the sheer volume of products can be dizzying. Even if the chosen product is perfectly adequate, the lingering thought of “what if I chose wrong?” can drive returns.

How to Stop Choice Overload From Fueling Returns

• Guide them to the right product – AI-powered recommendations, quizzes, and “best for you” tags make buying decisions easier—and more confident. Confident buyers return less.  
• Better product descriptions = fewer surprises – High-resolution images, video demos, sizing charts, customer photos, and FAQs help customers buy the right product the first time.  
• Make exchanges easy – With ReturnGO, customers can easily swap their items in a shopping-like exchange experience; this way, the customer ends up with a product they like, and the money stays in your store.

3. The Pain of Payment: Why People Hate “Losing” Money  

People feel the pain of spending money more intensely than the joy of gaining something. The higher the perceived value, the less likely they are to return it.  

This loss aversion is a powerful motivator in consumer behavior. The higher the perceived value of a product, the less likely they are to return it because the loss feels greater. This psychological principle, often referred to as the “pain of paying,” explains why shoppers are more hesitant to part with items they’ve purchased, especially if the price tag is significant.

How to Make a Product Feel Too Valuable to Return  

• Bundle products together – When customers buy a bundle or set, they see more value in the purchase—which makes returning part of it feel like a loss.  
• Reinforce the product’s value post-purchase – Send a follow-up email: “Here’s why you’ll love your new purchase”. Highlight premium features, customer testimonials, and pro tips.  
• Offer store credit instead of refunds – With ReturnGO, you can offer store credit instead of cash refunds. Customers who receive store credit are 50% more likely to buy again than customers who receive a regular refund.

4. The Effort Justification Effect: The Harder It Is, the More We Value It  

People naturally place a higher value on things they’ve invested time and effort into. This psychological principle, known as the Effort Justification Effect, explains why customers are less likely to return a product if they’ve put effort into setting it up, customizing it, or integrating it into their daily lives.

Think about how much more attached you feel to a piece of furniture you built yourself compared to one that came pre-assembled. The same applies to many purchases—when customers feel like they’ve already committed effort to something, they’re reluctant to let it go, even if they’re not 100% satisfied. This is also known as the IKEA effect and can have a huge business impact.

How to Use Effort Justification to Reduce Returns  

• Encourage engagement – Invite customers to test drive their purchase. Fitness gear? Send them a 7-day workout challenge. Kitchen gadgets? Give them a “first recipe to try.”
• Provide valuable resources – Offer exclusive content, such as guides, ebooks, or video tutorials that help customers get the most out of their purchase. This adds value beyond the product itself and encourages customers to invest more time in learning and using it.
• Offer troubleshooting support – If a customer wants to return an item due to confusion or dissatisfaction, offering live chat support or a quick fix can keep the sale.

5. Social Proof & Commitment Bias: The More Public the Choice, the Harder It Is to Back Out  

People don’t like looking inconsistent. If they’ve publicly committed to something, they’re way less likely to return it.  

For example, if someone posts a picture of their new sneakers on Instagram, they’re much less likely to return them. Why? Because they’ve already signaled to their social circle that they love their new shoes. Returning them would mean going back on that public commitment, which feels uncomfortable.

How to Use Social Proof to Keep Customers Committed  

• Encourage social sharing – “Post your new look & tag us!”, “Show us how you use it!”. When customers post about their purchase, they’re less likely to return it because now it’s part of their identity.  
• Use “Verified Purchase” reviews – Seeing others happy with the same product reassures customers they made the right choice. 98% of customers say reviews are an essential resource when making purchase decisions. 
• Offer loyalty rewards for keeping items – ReturnGO enables you to give customers store credit or loyalty points for keeping their purchase instead of returning it. Make them feel like they’re getting rewarded for their decision.

Final Thoughts  

Returns are a behavioral issue, not just a logistics problem. Customers are more likely to keep their purchases when they feel attached, see value, and feel like returning isn’t worth the effort.  

Want to reduce returns AND keep customers happy? Start using ReturnGO today to optimize your return policy and turn returns into revenue.