The Reverse Side of Online Shopping: Examining Sociodemographic and Built-Environment Determinants of Delivery Returns

The rise of online shopping has led to a significant increase in the return rate for items purchased online (or "delivery returns"). The process of returning items, once a rare occurrence in the traditional retail setting, has become a commonplace aspect of the e-commerce experience. Online purchase return rates (30%) significantly exceed those of physical stores (8.89%). Overall, these high return rates, have substantial financial, logistical, and transportation-related repercussions. From a transportation perspective, the large volume of returns necessitates additional truck trips, leading to increased freight vehicle miles traveled. This trend also results in more truck traffic at residential locations or return points. Despite the acknowledged impacts, this topic remains under-researched, with existing studies focusing on product characteristics, or retailer policies while overlooking consumer-level perspectives. This study aims to bridge this gap by examining how sociodemographic and built-environment factors influence the frequency and channel choice (physical store, mail carrier, Amazon drop-off, home pickup) for returning online purchases. Utilizing the National Household Travel Survey (NHTS) 2022 dataset, the research team analyzes responses on delivery return frequency across four channels. The team employs a multivariate probit ordered-response model to jointly analyze the full product returning behavior spectrum. This approach recognizes that behaviors are multifaceted, involving both the decision to return an item and the choice of a channel, and accounts for the interconnectedness of decision-making processes. The findings provide a foundation for developing targeted strategies to reduce return rates, streamline reverse logistics, manage travel demand, enhance customer satisfaction, and contribute to a more sustainable e-commerce future.

• Record URL:
  • https://tbd.ctr.utexas.edu/research-product/the-reverse-side-of-online-shopping-examining-sociodemographic-and-built-environment-determinants-of-delivery-returns/

Language

• English

Project

• Status: Active
• Funding: $150,000.00
• Contract Numbers:

  69A3552344815

  69A3552348320

• Sponsor Organizations:

  Office of the Assistant Secretary for Research and Technology

  University Transportation Centers Program
  Department of Transportation
  Washington, DC  United States  20590
• Managing Organizations:

  Center for Understanding Future of Travel Behavior and Demand

  University of Texas
  Austin, TX  United States 
• Project Managers:

  Bhat, Chandra

• Performing Organizations:

  University of Texas at Austin

  Austin, TX  United States  78712
• Principal Investigators:

  Bhat, Chandra

• Start Date: 20240601
• Expected Completion Date: 20250531
• Actual Completion Date: 0
• USDOT Program: University Transportation Centers Program

Subject/Index Terms

• TRT Terms: Built environment; Consumer behavior; Delivery vehicles; Demographics; Electronic commerce; Probits; Travel demand; Travel surveys; Truck traffic
• Subject Areas: Economics; Freight Transportation; Planning and Forecasting; Society;

Filing Info

• Accession Number: 01955087
• Record Type: Research project
• Source Agency: Center for Understanding Future of Travel Behavior and Demand
• Contract Numbers: 69A3552344815, 69A3552348320
• Files: UTC, RIP
• Created Date: May 15 2025 2:53PM