Returnado manages the returns on behalf of various clothing brands. Another reason for return is poor value, which leads to 7.5% of returned items. While the reason for 80.2% of product returns is receiving a damaged or broken item, 64.2% of returns happen because an item doesn’t match the description.
- Common return scams include returning fake items, claiming a product never arrived, even though it did, returning an empty box, or a box filled with junk.
- In response, businesses are adding workers, increasing warehouse space, and establishing separate departments to handle reverse logistics.
- 60% of returned items are not reused, contributing to 2 million tons of annual textile waste
- Returns not only affect customer experience.
- We’re deploying capital toward the highest returns, using technology to enhance customer experience.
Learn how AfterShip Returns helps merchants build a better customer returns experience, reduce operational costs, and recapture more revenue. Our data shows that fashion brands that enabled exchanges for any item saw an average of nearly 11% in increased upsell revenue. Because sizes aren’t standard across the industry, and many merchants don’t provide the information customers need to get it right on the first purchase.
Back-end delivery intelligence contains cost and increases revenue, so delivery becomes a competitive advantage. Ingrid helps retailers adapt with personalized delivery experience from checkout to returns. Retailers like Paul Smith, NA-KD, Apoteket, Nordic Nest and Mint Velvet use it to raise AOV, lift conversion, cut delivery-related support, implement direct exchanges, and increase delivery profitability. Typically heads of e-commerce, logistics and operations leaders who want to turn delivery into a measurable revenue and margin lever.
What Are the Ecommerce Industry Signals Worth Watching in the Second Half of 2026?
60% of retailers do not track the cost of returns, leading to underreporting Consider outsourcing reverse logistics if it’s becoming too time-consuming to handle in-house. Establish refund thresholds based on per-order dollar values or the number of returned items. Most offer tracking numbers for customers to see the location of their returned parcel. Second, get feedback and ratings on the returns process itself—that’s where you’ll find gold nuggets to set yourself apart from the competition. Most companies’ return processes don’t meet sustainability standards.
How To Manage and Reduce Ecommerce Return Rates
It’s also beneficial to include a return policy at the footer of your site so customers can refer to it whenever necessary. Encouraging exchanges over returns not only reduces your hidden return costs but can also greatly enhance customer lifetime value, as they decided to give you a second chance with the exchange order. You can also suggest alternative products for https://shu-i.info/the-ultimate-guide-to-services-2/ the returned items so that customers can easily select an exchange item. You can offer free shipping only if customers select the exchange option and charge a small shipping fee for the refund option to encourage exchanges. The very first practice you could apply when online shoppers have already requested a return is to turn their returns into exchanges. These tactics are applied to reduce the number of returns you have to handle and keep down the costs and efforts you have to put in your product returns process.
If you’re like most consumers, you don’t want to read a lengthy return policy online. Contact a local consumer protection lawyer if you need help understanding your legal rights concerning e-commerce returns and refunds. Customers don’t make purchasing decisions based on specs alone; clarity, functionality, confidence, and trust are also crucial. The first survey included responses from 2,006 consumers who had returned at least one online purchase within the past 12 months, exploring their shopping preferences, return experiences and expectations for the upcoming 2025 winter holiday season. Overall, nearly two-thirds (64%) of merchants say updating their returns process in the next six months is a priority.
Fashion ecommerce return rates typically range from 25% to 40%, driven largely by fit uncertainty, sizing inconsistency, and the inherent limitations of buying clothing online. https://creaspace.ru/users/profile.php?user_id=29878 A good returns process keeps the customer experience clean (clear policy, fast refund) while controlling the operational cost (quick inspection, accurate disposition). The carrier is selected based on the customer’s chosen shipping method at checkout, the destination zone, the parcel weight and dimensions, and any rules the brand has set (e.g., always USPS for orders under one pound). At Simpl, fulfillment starts at $7/order with picks, packaging, and postage included; custom packaging and kitting are available as add-ons.
- Ahead of the winter holiday season, the report also found that retailers expect 17% of holiday sales to be returned, consistent with previous years.
- Typical fulfillment expenses include pick and pack fees (per order and item), box costs, shipping charges, and storage fees.
- Branded order tracking page to track orders easily.
- If so, this can hinder the return process for gift recipients — especially if they don’t want the gift giver to know they’re returning their gift!
- The FTC enforces consumer protection laws to prevent deceptive, fraudulent, and unfair business practices.
The average ecommerce return rate is 18.1%
Much like a shipping policy, it’s critical to make your ecommerce returns policy clear and straightforward. Creating an ecommerce return policy may seem like a hassle — but it’s also a great opportunity to keep happy customers coming back for more. Globally, Capital One Shopping estimates it to be around 24.5% based on card network data.
An inefficient returns process can lead to frustration, harm the overall shopping experience and may result in lost customers. As mentioned earlier the rate of returns depends on the industry, but as you can see from the Statista chart below, fashion e-commerce returns are in the lead. What makes them unique in comparison to standard brick-and-mortar returns is the process of reverse logistics. Somewhat obviously, e-commerce returns refer to product returns that happen through an online e-commerce channel. That’s why successful e-commerce returns management is a must for many retailers. If conversion rate is low, optimize checkout flow and add trust signals.
Most returns tools integrate with the major shipping carriers but check to ensure your carrier is covered. Some inventory management software include returns functions built in, whereas some software requires extra integrations to process returns. One important part of the returns process is reducing the amount of returns you get in the first place. The downside to printable labels is that many people don’t have a printer—so it could https://viamrkting.com/ideal-customer-profile-icp-for-b2b-marketing/ be a hassle.