ITF Group Report Links Freight Quality to Retail Returns

New findings examine the relationship between carrier performance, freight handling, and rising retail return costs.

Updated on Oct. 15, 2026 in Transportation

Isometric editorial illustration of freight containers and shipping parcels on a platform, representing logistics and retail supply chain operations. — The ITF Group report links carrier performance and freight handling to the rising costs of retail product returns in 2025. AI Illustration. Upload story photo >

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Should retailers prioritize carrier safety and damage records over lower shipping rates?

A new report from the Missouri-based ITF Group highlights how transportation decisions significantly influence product return rates for retailers. The firm suggests that bridging the operational gap between freight and returns can help manage costs.

Why it matters

Retail departments for freight and returns often operate as separate silos, which obscures the direct link between carrier performance and damaged products. Addressing this disconnect allows companies to identify handling failures more effectively.

ITF Group reports an in-transit damage rate of 0.004% and a 98% on-time delivery record for its 100,000 annual loads. Enhanced controls have also reduced fraud-related incidents and exposure by approximately 90%.

The players

ITF Group

This Missouri-based transportation logistics firm manages over 100,000 loads annually utilizing a network of 65,000 vetted carriers.

The details

Retailers are increasingly tracking how transportation quality affects cargo damage after shipment arrival to pinpoint potential handling failures. By examining performance metrics alongside return data, companies can better mitigate the losses associated with the $849.9 billion in goods returned in 2025.

Total retail returns reached $849.9 billion during 2025.
Retailers evaluate carrier performance in Q4 2026 ahead of the peak season.

Market Landscape

This analysis responds to the 15.8% retail return rate recorded in 2025 by emphasizing the role of logistics in product viability. It shifts the competitive landscape by forcing firms to integrate freight and return data to protect margins.

Improved carrier handling and fraud detection can lead to more reliable product arrivals for consumers and fewer damaged items. These operational shifts help retailers stabilize costs, which may influence future retail pricing and subscription service structures.

The takeaway

Retailers should audit the link between their freight carriers and product return rates to identify hidden handling failures. Improving these operational controls can significantly reduce the impact of the billions of dollars lost to returns annually.