Returns don’t just chip away at profits—they erode customer trust, strain logistics, and clog up your support channels. If you’re an ecommerce brand dealing with increasing return rates, you’re not alone—and you’re not powerless either. Learning how to reduce returns in ecommerce is one of the most cost-effective ways to protect your margins and elevate the post-purchase experience.
In this guide, we’ll explore key ecommerce return statistics, real reasons customers send products back, and step-by-step strategies for reducing returns and streamlining the ecommerce returns process.
Average Return Rates in Ecommerce
Returns are more than just an inconvenience—they’re a major cost center. The average return rate in ecommerce is around 16.5%, according to the National Retail Federation. In apparel, the online shopping return rate can exceed 24%.
Return rates are calculated by dividing the returned items by the total number of items sold, and multiplying by 100. For example, if you sell 1,000 products and receive 165 item returns, your ecommerce return rate is 16.5%.
Returns cost U.S. retailers over $816 billion in 2022. Understanding these numbers is essential to building an effective returns optimization strategy. Each return represents added costs, lost revenue, and potential customer churn.
Common Reasons for Ecommerce Returns
Before you can solve a problem, you need to know its root causes. Some of the most common reasons for ecommerce returns include:
- Wrong size or poor fit (especially in fashion)
- Product not as described or expected
- Item damaged during shipping
- Late delivery
- Receiving the wrong item
- Low-quality or defective merchandise
These reasons fall under both preventable issues (like inaccurate descriptions) and logistical issues (like poor packaging), both of which we’ll tackle below.
How to Reduce Product Returns in Ecommerce
Here are 11 proven, actionable strategies to lower your ecommerce return rates and improve the customer experience.
1. Write clear and detailed product descriptions
Many returns happen because customers feel the product was not what they expected. A detailed product description that includes an accurate description and specifications—like dimensions, materials, colors, and usage instructions—can prevent these surprises.
Describe how the item fits into the customer’s life, include common use cases, and avoid overhyping. The more transparent and comprehensive your descriptions, the more confident the customer feels, leading to fewer retail returns.
2. Use high-quality, zoomable product photos
Visual content is often more impactful than words. High-resolution photos showing multiple angles, scale references, and in-context usage help customers assess what they’re buying.
Zoom features allow shoppers to inspect texture, detail, and build quality. This visual transparency leads to more informed decisions and helps significantly reduce product returns.
3. Add smart sizing guides and fit finders
Incorrect sizing is one of the top reasons for ecommerce returns, particularly in fashion and footwear. Adding detailed size charts, garment measurements, and model fit references can greatly help.
Interactive sizing tools or quizzes that ask for height, weight, or preferred fit style can personalize the recommendation and reduce customer returns by minimizing guesswork.
4. Display customer reviews and real-life photos
Reviews help create realistic expectations. Verified customer feedback gives future buyers insight into product performance, durability, and fit. Even negative reviews offer value by helping customers decide if the product is truly right for them.
Encouraging buyers to upload their own photos provides authenticity and helps bridge the gap between marketing and real-world experience.
5. Offer live chat or guided selling support
Many customers abandon purchases or make inaccurate selections due to unanswered questions. Live chat can help guide them toward the right product in real time.
Support agents can provide product comparisons, clarify compatibility questions, and address hesitations. This hands-on assistance is a powerful tool for reducing returns driven by poor product fit.
6. Use better packaging to prevent damage
Even the best product is vulnerable to poor packaging. Damaged items are a leading cause of ecommerce returns, often resulting in lost revenue and negative reviews.
Use reinforced boxes, cushioning, and packaging materials appropriate for the product type. Fragile items should be labeled and double-boxed when necessary to protect your brand and bottom line.
7. Offer product demo videos or 3D views
Videos provide clarity that static images and descriptions often cannot. A quick demonstration of how a product works, looks, or feels in real life can eliminate confusion and build confidence.
3D views and AR tools offer interactive previews, especially useful for furniture, electronics, or beauty products. This investment helps customers feel they’ve made the right choice.
8. Reduce confusion with on-site FAQs and support content
Include detailed FAQs on product pages to address common pre-sale questions: compatibility, dimensions, care instructions, or warranty information.
Proactive support through content reduces reliance on assumptions and cuts back on unintentional misorders, a subtle but powerful method for reducing returns.
9. Track and remove high-return SKUs
Your own return data is a goldmine. If certain SKUs consistently have high return rates, it’s worth investigating whether it’s a quality issue, misleading description, or market mismatch.
Improving or retiring these items helps optimize your catalog and prevent recurring ecommerce returns.
10. Set accurate shipping expectations
Shipping delays can lead to returns, especially when customers order for a specific occasion. Overpromising and underdelivering on shipping timelines erodes trust.
Display clear estimated delivery dates and update customers proactively. Setting realistic expectations helps reduce customer returns related to delivery disappointment.
11. Optimize your ecommerce returns policy
A well-crafted ecommerce returns policy can prevent misunderstandings and deter impulse returns. Be transparent about timeframes, accepted conditions, and who pays for return shipping.
Make the policy easy to find and easy to understand. When customers know what to expect, they’re less likely to exploit the policy or return out of frustration.
Ecommerce Returns Process Tips
The ecommerce returns process isn’t just about logistics—it’s a core part of the post-purchase experience. A poorly handled return can turn one return into a lost lifetime customer. Conversely, a smooth return process builds trust, encourages repeat purchases, and reduces customer service costs.
A standard process includes a return request, label generation, product drop-off or pickup, inspection, and refund or restock. Each of these touchpoints is an opportunity to increase efficiency and customer satisfaction. Below are key tips to optimize the entire flow.
1. Automate return label generation
Manual return requests waste time for both customers and staff. Automating return label creation via portals or pre-generated email links simplifies the ecommerce returns process and reduces friction.
Self-service options give customers control and confidence, while your team saves time on backend processing.
2. Provide multiple drop-off or pickup options
Not every customer has the same convenience. By offering drop-off at carrier locations, lockers, or scheduling home pickups, you reduce barriers to completing the return.
More flexibility leads to fewer abandoned returns and greater satisfaction.
3. Communicate return status via email or SMS
Keep your customers informed at every step—from label creation to refund issued. This minimizes anxiety and customer service inquiries.
Automated updates improve the perception of reliability and transparency in your ecommerce returns process.
4. Issue refunds or credits quickly
Delayed refunds frustrate customers and increase churn risk. Aim to process refunds within 24–48 hours of receiving the return.
Quick action improves the post-purchase experience and encourages future orders.
5. Encourage exchanges or store credit over refunds
Where possible, offer incentives to choose exchanges or credit. This retains revenue and keeps customers engaged with your brand.
Make the exchange process seamless with clear instructions and one-click reordering.
6. Track return reasons for future improvements
Log each return with specific reasons—wrong size, damaged, not as described, etc. This data helps identify trends and root causes.
Refining your products or descriptions based on this insight is key to reducing returns long term.
7. Flag frequent returners for review
Some customers habitually over-order and return. While many are legitimate, a subset of these customers is responsible for unnecessary costs.
Use software to monitor excessive returns and set parameters for flagging or customizing their shopping experience.
8. Restock returns efficiently to recover revenue
Returned items sitting in storage are lost inventory. Build an efficient system to inspect, repackage, and relist items quickly.
This recaptures potential revenue and lowers the cost of returns over time.
How to Deal with Product Returns Using OrderCup
If you’re looking for a practical, scalable way to manage and streamline product returns, OrderCup offers a comprehensive solution built for ecommerce brands.
OrderCup helps you:
- Create custom return workflows based on product type
- Automate label generation
- Choose the cheapest and most convenient delivery method
- Get discounts of up to 90% on delivery rates (depending on the carrier)
- Track return shipments in real time
OrderCup simplifies the experience for both your customers and your team. What sets OrderCup apart is its ability to cut manual work, reduce return costs, and maintain customer loyalty. You’ll spend less time managing logistics and more time focusing on growth.
OrderCup also provides the ability to generate Pay-on-use return labels for many carriers that support it. When you generate Pay-on-use return labels for your customers, you are only charged if the label is actually used. Often, customers may change their mind on the return or forget to return the item, in which case you are not charged for the return shipment, assuming returns are free for the customer and paid for by you.
Reducing Returns Is Good Business
There’s no magic wand for eliminating returns. But by learning how to reduce returns in ecommerce through better communication, clearer expectations, and smarter operations, you build a more profitable and trusted brand.
The cost of returns doesn’t have to be a fixed loss—it can be a strategic opportunity. The brands that embrace this mindset will win on both the customer and the balance sheet side.
And for those cases when returns do occur, OrderCup‘s return management tools will help you take control.
FAQs About How to Reduce Returns in Ecommerce
What is the most returned item?
Apparel tops the list, followed by shoes and electronics. Sizing and fit issues are the biggest factors.
What is a good Amazon return rate?
Most sellers consider 5–10% a healthy return rate. Higher rates may signal product or fulfillment issues, although this varies greatly depending on the category. For example, the return rate for fashion and clothing is up to 40%, and for electronics and technical accessories, it is 25-35%. [1]
What are excessive returns?
Excessive returns refer to customers who habitually return a high volume of purchases. Many retailers monitor this to reduce abuse.
What is the average return rate for online apparel?
Between 30% and 40%, depending on category and region. Fit and expectation mismatch are the primary reasons. [2]
How much do returns cost retailers?
The cost of returns includes restocking, return shipping, and labor. It averages 21% of the order value. [3]