Ecommerce Return Rates 2025: Statistics, Benchmarks & Insights

Did you know that ecommerce returns cost the retail industry over $743 billion in 2023?

WHAT?! Yes. You saw that right.

We’re not trying to jump-scare you here, but that’s the real number. And we expect that it’ll go up in the next years.

As an online seller, return management is not something you can close your eyes to and leave up to fate (but we do wish it were that easy).

It affects many areas of your business, like your profit, inventory, operations, and customer relationships. If you don’t understand ecommerce return rates and what’s behind them, you might overlook some bad signs.

But don’t worry. You don’t have to read everything online to catch up. We have combined the latest statistics, research, and strategies to help you manage returns and keep your business strong.

Let’s start with the definition and how to calculate ecommerce return rates.

What Are Ecommerce Return Rates and How Are They Calculated?

Ecommerce return rates tell you what portion (in %) of your orders end up being sent back to you. It’s normal to have some return items here and there. But a high return rate means something’s off with your product, process, or customer’s expectations.

To know if you need to change anything, you have to measure your current return rate accurately first. Because if you don’t, you’ll be guessing like you’re unboxing a Christmas gift.

Calculation Methods for Online Retailers

This is the simple formula you can use to measure your ecommerce return rates:

(Units Returned ÷ Units Sold) x 100 = Return Rate Percentage

Imagine you sold 250 pairs of shoes last month. And 30 of them were returned. You can divide 30 by 250 and get .12. Now, multiply that by 100.

Your return rate is 12%.

A bit simple, right? But there are a few mistakes that sellers have to avoid. For example, some count canceled orders, pending exchanges, or items still in transit. That makes your numbers less reliable.

You have to focus on actual returns (the ones delivered physically) for that specific month or year only.

Key Ecommerce Return Statistics for 2025 

Next, let’s check some of the most important statistics you have to know, like the overall ecommerce return benchmarks, return rates across industries, and the common reasons behind them.

Overall Ecommerce Return Benchmarks

The average ecommerce return rate reached 16.9% in 2024, based on NRF research. And experts across the retail industry expected the cost to be around $890 billion.

For example, a mid-sized ecommerce business sold $10 million worth of products last year. That’s about $1.7 million (as per the 16.9% average) worth of orders coming back (wow!).

That’s a huge jump from 8.1% in 2019. For online retailers, returns continue to be an expense center, especially as online shopping grows and customers expect easier return options.

If many of those returns qualify for free return shipping, and some can’t be resold, the profit loss adds up fast. This doesn’t even include the time spent managing the return process, the impact on customer satisfaction, or its effect on future purchases.

But that’s not all. In the same survey above, we found that online return rates are now 21% higher than overall return rates. That’s because people are now doing more online shopping than ever.

These trends show that every ecommerce business should start treating returns as a core part of the customer experience, not an option.

Comparing Ecommerce Return Rates Across Industries

Do you want to guess which products online shoppers return the most?

The answer is… (spotlight, please) clothing.

Statista’s report found that around 25% of shoppers return apparel, followed by 17% for shoes and 12% for accessories.

Consumer electronics sit at 10%, but those returns are expensive. And while that’s lower than the others, the gadgets are more expensive. For example, a single returned item can cost hundreds of dollars.

Here’s a good comparison: one iPhone ($999) vs. five Lacoste shirts ($400).

How about the least returned items? We got furniture and household goods at 8%. These are harder to return and less likely to be bought without careful thought.

Here are some pro-tips if you’re in these high-return categories:

• Add accurate product descriptions and real-life photos to reduce unmet expectations.
• Offer store credit for returned items to recover potential lost revenue.
• Use a return window that fits the product type. For example, apparel may need 30 days, but electronics should have a shorter lead time to avoid misuse.

Common Reasons for Ecommerce Returns

Now that we know what most returned items are, let’s talk about the common reasons behind that.

The top three reasons for ecommerce returns mentioned by eMarketer are:

• Incorrect size, bad fit, and color (55%)
• Damage or defects (48%)
• Poor quality (46%)

As you can see, the top reason is where clothes and shoes fall under. That shows the connection why fashion categories always lead in return rates. It’s hard to judge the exact color and fit because you’re only looking at it on screen.

Damage or defect is something that you can work on with proper quality control. And if you know that the reason why customers return your products is because of the quality, then you could change your materials.

If you want to avoid these issues, here’s what you can do:

• Provide actual measurements of your products. For example, include size charts, model references, and even fit notes, such as “runs small” or “relaxed fit.”
• Show your products in different lighting and body types.
• Add customer reviews that mention quality, durability, and fit.

Return Rate Differences: Online vs Brick-and-Mortar Stores

Let me show you more numbers (this is fun, right?!).

In another 2024 survey, the average return rate for online orders was 15.2%, while in-store purchases were only around 5%. That’s a 3x difference.

Let’s say you own an online pet supply store. Then, one of your competitors has a physical store. You could be both making $10,000 a month. But you might lose around $1,520 to returns, while your competitor only deals with about $500.

But what do you think is the reason behind this? Good question.

We’re all buyers at some point. What makes in-store-bought items easier to commit to is that we can try them on, check the color, or see the size for ourselves. We can decide right away if it’s worth taking home.

That’s the advantage (a huge one, actually) of brick-and-mortar stores vs. online ones.

Pro Tip: Show your product in action. You can add video walk-throughs or demos to your product pages, use real people to wear your apparel for size guides, and update your product descriptions based on common return reasons.

Ecommerce Return Rates by Gender and Generation

Who’s more likely to return their orders? And who keeps unwanted items instead of sending them back?

Here’s what the data says:

• Women are about 1.5 times more likely to return products than men.
• Millennials (29–44) and shoppers with kids top the list for using items before returning them (up to 56%).
• Gen Z and Millennials often skip returns due to inconvenient or unclear return policies.

What stands out here is that return behavior depends on more than just product fit or satisfaction. It’s tied to lifestyle, income level, and how smooth the return process feels.

Pro Tip: Make your return policy transparent, easy-to-read, and a bit flexible, especially for busy or young shoppers. That can help you increase customer satisfaction with online purchases and build customer loyalty over time.

Geographical Variations in Ecommerce Return Rates

Return habits can also be affected by where the online shoppers (and store owners) are based, according to Statista. In India, 81% of shoppers returned something they bought online in the past year. That’s much higher than 48% in the US, 54% in Germany, or 40% in South Africa.

While this is not always the case, wealthier countries often offer more return-friendly experiences.

Just look at places like Denmark, Spain, and France, where shoppers are entitled to a 2-year guarantee by law (under EU law). That means sellers are expected to fix or refund faulty products with minimal inconvenience.

Some countries even treat returns like a casual routine. (“Didn’t like it? Just send it back. No biggie.”) These protections make people feel more secure when buying online.

Here are some pro tips you can follow:

• Offer store credit instead of refunds if shipping back to your country is too expensive or slow
• Include local return options like pickup points or local drop-offs to make returns easier for international customers
• Use accurate, location-specific product descriptions to avoid confusion with sizing or compatibility

Ecommerce Return Rate Fluctuations

The post-holiday return rush can get a little crazy. Our clients have seen return volumes double (sometimes even triple) from late November to mid-January. So they know what to expect and can prepare for it early.

According to Salesforce, at least 10% of US ecommerce orders were returned each week during last year’s holiday season, with some weeks hitting 16%.

Pro Tip: Automate your approval for some items to avoid managing everything manually on busy days. For example, you could set some of your apparel to auto-approve returns within 14 days of delivery.

But to do that, you need to have a good return management tool like ParcelPanel. This self-service portal allows your customers to manage their own returns and track them in real time.

In your case, you can set rules and choose which items can be returned or not. Plus, you can offer refunds, exchanges, or store credit, all from a branded return page.

Return Fraud and Abuse in Ecommerce

We mentioned the amount of returns in 2023 (flashback: $743 billion). But do you know how much of that is fraud? They’re around $101 billion worth of returns.

One example comes from apparel brand PacSun, which spotted a massive spike in suspicious returns. In one case, a single customer returned 250 orders totaling $24,000. But none of the items ever reached their warehouse.

After investigating, the company found that some buyers were sharing refund tricks through Telegram groups and forums to rig the system.

Retailers are taking bigger losses from this kind of activity. But tightening return policies too much can upset loyal customers. You have to find the balance.

Pro Tip: Set up a verification process to allow any purchase. And add return controls that help you spot unusual behavior without making things harder for loyal customers.

The Impact of High Return Rates on Your Ecommerce Business

Financial Costs

High ecommerce return rates are like a slow drip from a faucet you forgot to fix. At first, it doesn’t seem like a big deal. But over time, that small leak leads to a much bigger water bill (uh-oh).

The same goes for your returns. A few here and there might seem harmless until you realize they’re quietly eating your profits.

Most sellers only think about the refund. And while we agree that that’s a huge part, there are some “invisible” costs you’re paying for. That includes free return shipping, restocking labor, packaging waste, and nonrefundable payment processing fees.

Imagine you have a customer named Regina. She sent back a $75 item with free return shipping. You’d need to cover all the fees, and while you got the item back, you might not be able to sell it at the same price.

Operational Complexities

Some of our clients come to us after dealing with months of unmonitored online returns. At first, they didn’t see the issue. But they noticed that their team was constantly behind, inventory counts were off, and restocks weren’t happening when they should.

You might not know this yet. But returns take a lot of work. Your team has to review the return request, receive the item, check it (to see if it’s in good condition), and update your system. They also need to monitor any complaints and attend to other customers’ queries. 

It also makes forecasting harder. Your store might show 15 units available, but if five are waiting to be inspected, you could oversell. Because of that, you can get more support tickets, have trouble with shipping, and receive bad reviews.

Brand Reputation & Customer Loyalty

Did you know that 86% of consumers will walk away from a brand after only two bad experiences? There’s no strike three here (and you don’t get any warnings, too.)

You could count the first one as them choosing to return the product. And the second one is the return process itself. If you mess that up, it won’t be easy to win your customers back.

But if you create a smooth return experience for them, there’s a huge chance that they’ll be back and give your store another shot.

Also, here’s something you should remember. High return rates can also be a signal that something needs your attention, like sizing, product photos, or quality.

Key Strategies to Reduce Ecommerce Return Rates

Now that you understand the impact of ecommerce returns on your business, it’s time to learn how to reduce them. You can start by optimizing your product presentation, improving quality, and educating your customers.

Let’s look at them each.

Optimizing Product Presentation & Information

Your product pages are doing most of the selling work for your ecommerce store. When customers can’t touch or try products before buying, these pages need to answer every question they might have.

The simplest way to start is with your product descriptions. Say goodbye to generic copy and hello to descriptions that cover size, materials, fit, and how the product actually works in real life. Then, you can partner it with images that show multiple angles.

But here’s a new thing you should try: Using technology to spice things up. I’ve noticed that many store owners still haven’t used tech to their advantage… when there’s so much they can do with it.

For example, you can add 360-degree product views instead of simple static images. That’s what Adidas does with their sneakers so that customers can inspect the product from every angle.

Another cool way is to use augmented reality (which I think is really cool!) You can use it to show your customers what the product will look like with them or within their area. Warby Parker’s virtual try-on and IKEA Place apps are the best examples of AR-ready stores.

Improving Quality Control & Fulfillment

When it comes to reducing ecommerce return rates, quality control is one area you cannot afford to overlook.

Take OLIPOP, a functional soda brand known for its focus on safety and consistency.

They review every step of their process, from working only with approved suppliers to testing each batch in certified labs. This level of attention helps make sure that what customers get is exactly what was promised.

Fulfillment is just as important. If the wrong flavor shows up or the package is damaged, returns are almost guaranteed. (We’ve seen this happen more than once with small teams juggling orders.)

Before your next sale goes out, ask yourself: Are you double-checking orders? Are your packing materials keeping products safe in transit?

These small steps have a big impact on customer satisfaction and can make or break your return numbers.

Proactive Customer Education & Support

Clear expectations lead to fewer returns. Sephora is one of the brands I love using as an example.

I like how their return policy is just a click (and a pop-up) away from the product page, which is super convenient. They also have a dedicated returns page that answers just about every FAQ a shopper might have.

But it’s not only that. Sephora’s product pages are detailed. You’ll see images, key features, ingredients, and real customer reviews, all before you even add to the cart. How awesome is that?

Giving customers access to things like sizing guides, how-to videos, and returns policies helps prevent avoidable returns. And when you offer post-purchase support, like setup instructions or usage tips, you’re giving customers fewer reasons to send things back… and more reasons to return.

The Future of Ecommerce Return Rates: Trends for 2025 and Beyond

Watch out for the following trends in ecommerce returns, including sustainability, personalization, and omnichannel returns.

Sustainability & Circular Economy

Eco-friendly returns used to be a nice extra. Now, they’re expected, especially from younger shoppers. Research shows Millennials and Gen Z are 27 percent more likely to buy from brands that show they care about the planet.

That’s a big shift for ecommerce businesses. Some now offer store credit to reduce the need for extra shipping. Others guide customers toward exchanges to keep returns from piling up. It’s not just about waste. It’s about running smarter operations and building trust.

Look at Publix. The brand is known for taking care of its people and the environment. Their consistent focus on sustainability has helped them build long-term loyalty across generations.

What does that tell us? If your return policy still treats eco-friendliness as optional, you might be sending the wrong message to your most future-focused buyers.

AI, Personalization & Automation

Since the return rate is going up day by day, store owners and other ecommerce businesses should also be more intentional about preventing it.

Some brands now use AI to review product-level data and find repeat issues. Maybe certain sizes run small, or maybe one color gets returned more than others. When you know that, you can fix the listing or adjust what you offer.

Automation also helps behind the scenes. You can set up rules to process simple returns, send updates to customers, and reduce the manual work your team deals with every day.

It’s not about removing the human touch. It’s about saving your time for the parts that actually need it.

Omnichannel Returns & Customer Convenience

You might have heard of BORIS (uhm… not the politician). The “Buy Online, Return In Store.” And it’s picking up speed. In the past year, around 48 percent of retailers reported a rise in this type of return.

Retailers also seem to be taking the returns challenge more seriously than before, with 57 percent saying it’s a bigger priority now than it was a year ago.

A recent YouGov survey found that 43 percent of shoppers say easy returns are a big part of their decision to buy, and another 40 percent say it still matters.

It’s a win-win. Customers get convenience, and store owners avoid extra shipping fees when returns happen in person instead of by mail.

Conclusion: Mastering Ecommerce Return Rates for Sustainable Growth

Wow. That was a long article, right? But congratulations on making it to the end.

You came here to really know about ecommerce return rates, and now you have the full picture. So, it’s time to take action.

Start with the following steps: improving your product pages and guides, using technology like augmented reality (AR), and giving customers upfront answers with strong FAQs and return policies. It’s also great to invest in tools that can help you build a simple and reliable returns process.

Ready to cut avoidable returns, keep more revenue, and make the process less of a headache for your team and your customers? Try ParcelPanel Returns & Exchanges.