Wondering how to reduce ecommerce returns without losing customers? Start with better size and product information, fairer return policies and smarter handling of returned stock. Those three moves tackle the returns you can actually prevent.
This guide is part of our look at sustainable ecommerce, where returns are one of the biggest sources of avoidable waste.
| Key fact | Value |
|---|---|
| US online purchase return rate, 2023 | 17.3% |
| Projected US returns, 2024 | $890 billion |
| Average cost to process a return | 30% of the item’s original price |
| Landfill waste from returns, 2023 | 8.4 billion pounds |
| US retailers with stricter return policies, 2023 | 81% |
These figures come from NRF and NBC News. They change from year to year, so check the sources before you rely on them.
Why returns hurt stores and the planet
Returns are as old as retail, but they have grown fast. According to NRF, the return rate climbed from 8.8% in 2012 to 14.5% in 2023 as ecommerce took a larger share of sales.
Online is where the gap shows. The same NRF analysis, using Appriss Retail data, puts 2023 online return rates at 17.3%, against 10% for in-store purchases.
Every returned parcel has a price. NBC News, citing Optoro, reports that processing a return costs retailers an average of 30% of the item’s original price. Returns in 2023 also created 8.4 billion pounds of landfill waste, and some returned goods are sent straight to landfill.
The waste goes beyond the box. NRF points out that the materials, energy and transport behind a product are especially wasteful if it is never used for its intended purpose. For the full picture of emissions and packaging, read our guide to ecommerce returns environmental impact.
Which returns can you actually prevent?
Not every return is a problem. NRF describes good returns as products sent back in pristine condition shortly after purchase, which makes them much easier to sell to someone else (NRF).
“Bad” returns are the ones to target. They include items with visible wear, missing parts or damaged packaging, and any plug-in appliance or electronic that has been connected to a socket and can no longer be sold as new to some customers.
Shopper habits drive many bad returns. The most common patterns are:
- Bracketing: ordering several sizes or colours and sending most back. NBC News reports that nearly two-thirds of consumers now do this.
- Wardrobing: buying an item for an event and returning it afterwards. The same report says 69% of shoppers admit to it, citing an Optoro survey.
- Expectation gaps: the product arrives and does not do what the shopper thought it would.
- Transit damage: items that arrive broken or scuffed.
Bracketing is not limited to one age group, but it skews young. A December 2024 NRF and Happy Returns study, reported by PPC Land, found that 51% of Gen Z consumers bracket apparel and footwear purchases.
Prevent returns before the order ships
The cheapest return is the one that never happens. Most prevention comes down to helping shoppers pick the right thing the first time.
- Size guidance: NRF says retailers are making it easier for shoppers to know exactly what size fits best before they buy online (NRF).
- Honest product pages: work with suppliers so descriptions state clearly what a product can and cannot do, which is another approach NRF reports retailers taking.
- Easy setup: for devices, simple instructions help avoid returns of items that work perfectly well.
- Protective packaging: CleanHub’s report says only 20% of online returns are due to damage, so most returns have other causes, but good packaging still protects the ones that are (Packaging Europe).
- Virtual try-on: the same report expects new technologies of this kind to cut the number of products sent back to warehouses.
Customer reviews with fit notes and real-life photos also help, though the sources here do not put a number on their effect. Treat them as a low-cost test: track whether the return rate for a product falls after you add them.
Set return policies that reduce returns
Policy is the lever most stores reach for first. NBC News reports that in 2023, 81% of US retailers rolled out stricter return policies, such as shorter windows and return or restocking fees.
The trend continued. According to the NRF and Happy Returns study reported by PPC Land, 66% of retailers had started charging for one or more return methods in the past year.
Tougher terms carry a trade-off, because shoppers notice them. The same study, reported by PPC Land, found that 76% of consumers see free returns as a key factor in where they shop. Separately, survey data from Navar suggests 51% of consumers are more likely to shop again with merchants that avoid extra shipping and return fees (Talk Business & Politics).
A more targeted approach is to reward the behaviour you want. NRF notes that shoppers who return less often, sooner and in pristine condition are likely to be offered more generous terms, including free returns, at-home pickup and longer windows. Retailers also use gift cards and discounts on new purchases to encourage good returns.
Another option is a keep-it policy. Talk Business & Politics reports that Amazon sometimes tells customers to keep a small, inexpensive item and still credits them, and that 33% of retailers have such a policy. It avoids a parcel journey altogether.
Finally, do not lean on green messaging alone. The PPC Land report found that fewer than 10% of shoppers list sustainability among their top three considerations when returning items, so convenience and clarity matter more to most customers.
Give returned items a second life
Some returns will always happen. What you do next decides whether the item becomes waste. NRF describes the reverse logistics process in three steps:
- Asset recovery: collecting the product from the customer.
- Reverse operations: moving it to a distribution centre, then evaluating and grading it.
- Value generation: deciding whether it can be resold as new or used, or needs to go back to the maker, be donated, be sold for parts or be recycled.
Grading quickly matters because seasonal and tried-on goods lose value with time. NRF notes that items like sandals become harder to resell as summer turns to autumn.
Large retailers show what resale can look like. Talk Business & Politics notes that Amazon will restock some items and sell them as “used-like new” at a slight discount to the new product.
Smaller shops can do the same with open-box or lightly used stock. If you are weighing options for an item that cannot go back on the shelf as new, learn how to sell secondhand items online before you write it off.
Frequently asked questions
What is the quickest way to cut returns?
Show answer
Fix the information gap first. Clear sizing help and accurate product pages target the bracketing and expectation-gap returns that NRF highlights.
Do return fees actually reduce returns?
Show answer
Retailers say restocking fees and shipping charges may help curb the amount of inventory sent back, according to Talk Business & Politics. The same report cites Navar survey data showing that 51% of consumers are more likely to shop again where such fees are avoided, so test any change carefully.
Why are online return rates higher than in-store?
Show answer
Shoppers cannot try items on or handle them first, so some order several versions and keep one. NRF puts 2023 online return rates at 17.3% versus 10% in-store.
What should I do with a return I cannot sell as new?
Show answer
Grade it, then choose the next best route: resell it as used or open-box, donate it, sell it for parts or recycle it. That is the value-generation step NRF describes.
