How to Reduce Returns in ECommerce

Imagine hitting your sales goal of $500,000 in a year (cue the happy dance). But only to realize that 18% of those orders were returned. That’s $90,000 worth of lost sales! Ouch.

And it doesn’t include other expenses and non-monetary costs, such as return shipping costs, restocking fees, customer support, and the biggest hit of all: losing repeat buyers.

The truth is: Whatever you sell, you’re not immune to return requests. That’s why learning how to reduce returns in ecommerce is important. It can save your business from profit leaks and help you improve your customers’ experience. 

Some categories are more return-magnet than others. Statista’s 2025 survey showed that clothing tops the list, with a 25% return rate, followed by shoes, accessories, food and beverages, and electronics.

Here’s a quick breakdown: 

Category% of Shoppers Who Returned
Clothing25%
Shoes17%
Accessories12%
Food & Beverages12%
Consumer Electronics10%
Cosmetics & Body Care9%
Books, Movies, Music & Games9%
Furniture & Household Goods8%

But here’s the good news: While it’s normal for online retailers, there are some simple things you can do to improve customer satisfaction and minimize frequent returns. And we’ll show them to you.

So, cheer up! And read on to know how to reduce returns in ecommerce at every stage of the customer journey (before, during, and after sales).

What Makes People Return Items?

Customers have different reasons as to why they return online purchases. But eMarketer named the top causes of ecommerce returns, including incorrect size or color (55%), damaged items (48%), and poor quality (46%).

ecommerce returns data

Let’s look at some examples.

  • Incorrect size or color: Say someone ordered running shoes from your store. He’s used to buying size seven from other brands, so that’s what he clicked. But when your product arrived, they felt more like a size 8. That’s an easy return, and probably an avoidable one if sizing guidance had been clearer.
  • Damaged item: Imagine that Emma (a new customer) bought a coat for her upcoming trip. When it arrived, the zipper was busted. She didn’t have time to replace it, so she returned it and went with another brand.
  • Poor quality: One of our clients switched to a different fabric for their best-selling hoodie. Within weeks, their return rate tripled. Customers said it didn’t feel as thick and comfy as the old ones. After digging into the data, the brand brought back the original material, and the return numbers dropped back down.

The examples (and reasons) may have been different. But they all come down to one thing: the stores failed to meet consumer expectations.

Now, to help you avoid these issues before they start, we’ll talk about ways to reduce returns at every stage of the buyer journey: before, during, and after the purchase.

Pre-Purchase Strategies: Setting Accurate Customer Expectations

You can set accurate customer expectations by providing detailed product descriptions, using a detailed sizing guide, and adding reviews from real users.

Let me explain each and give you some tips:

1. Write Clear Product Descriptions to Reduce Returns

Your product content matters because it educates customers. Around 70% of online shoppers said that product descriptions influence their decision to buy or skip. Well, that’s a lot.

Your content should follow what we call the ADE rule: Accurate, Detailed, and Easy to read. Here’s what you can do:

  • Detailed and accurate info: It’s best to mention what your product is, the materials used, where it’s made, and how to use it.
  • Connect features with real value: Skip the generic “long battery life” and say, “Listen for up to 24 hours without recharging, even on back-to-back meetings or flights.” That kind of detail answers the “why should I care?” question right away.
  • Simple language: Keep it close to an 8th-grade reading level. That way, more shoppers will actually read it (and understand it).

We recommend you check how Allbirds creates descriptions for their shoes. They list the exact material, fit, care instructions, and even include wear suggestions.

how to reduce ecommerce return

2. Show What the Product (Really) Looks Like

Brick-and-mortar store returns are lower than online returns because… customers get to see and feel the product before buying.

Now, what can online ecommerce brands do to top that up? The answer is visuals and imagery.

You can use high-quality photos and videos to show what your product looks like in real life. This makes online shopping easier for future customers and helps online shoppers get a more accurate feel for what they’re buying.

One brand we love for this is Bose. On their product pages, you’ll find crisp images from different angles, true-to-life color options, and videos showing how their headphones work in daily life. Plus, an interactive view where you can inspect the product like you’re holding it.

returns ecommerce

PRO-TIP: Don’t just rely on studio shots. Add lifestyle photos showing the product in use, like on different people, in real spaces, and with natural lighting. Context builds trust, and that can result in fewer customer returns.

3. Use Effective Sizing Guides and Virtual Try-On Tools

If you want to minimize returns because of incorrect size, color, or fit, you have to make an effort on this. Slapping a generic size chart on the page and calling it a day won’t do it. But sadly, we’ve seen many online stores do this.

What you can do is add measurements and sizes of the models wearing your product. They allow shoppers to get a better picture of what it looks like on someone with a similar body type.

Shein uses this technique. They also let customers include their height, weight, and fit notes in reviews. That’s incredibly useful when your potential customers are stuck choosing between two sizes.

Virtual try-on technology is also a great strategy to make sure your product matches the customer’s preference. You can avoid disappointed and unhappy customers through this. Also, it’s a better way of using AI (rather than creating fake videos/news for “engagement”).

Take L’Oréal’s hair color tool. It lets shoppers preview shades using a selfie. Awesome, right?

L’Oréal try on

Try-on tools also work well for glasses, jewelry, and even furniture when paired with AR. You can keep your customers informed, avoid buyer’s remorse, and make online shopping a bit more fun and entertaining.

4. Leverage User-Generated Content and Customer Reviews

Now, for the most influential strategy… your customer’s feedback. BrightLocal’s new survey showed that 96% of shoppers check reviews before buying.

Besides increasing customer trust and encouraging future purchases, customer feedback is actually a magnifying glass that lets you see product issues up close.

For example, if you keep seeing comments like “packaging is too flimsy” or “color is different from the pictures.” Then, you can make changes to the description, improve images, and pick a better packaging.

Plus, photos and videos from other buyers also help set the right expectations. A shopper is more likely to trust a review with photos than one without (at some point, we all scroll down to look at the real-life shots).

PRO-TIP: Incentivize your reviews and use a pointing system to encourage more detailed reviews. You could give your customers two points for text and five for photo uploads.

Also, don’t forget to reply to reviews. Customers appreciate knowing someone is listening. It can build customer loyalty. And what does that bring? Yup! More sales.

During-Purchase Strategies: Enhancing the Customer Experience

We’re done talking about the first barrier of defense from returns. Now it’s time for the second level, and that’s during the purchase.

Most ecommerce businesses think this part only kicks in when a customer sends a message. 

But the best way to reduce returns at this stage is to anticipate questions (before they’re even asked).

“Ralph ordered a hiking backpack for his Machu Picchu trip next week. It looked great online, but the product page didn’t show a delivery estimate. The backpack arrived one day after his flight.” 

You already know how that ends.

How to Improve Customer Experience During Purchase

One thing you can do is add shipping and delivery estimates right on the product page. Don’t wait for checkout before giving customers the info they need. For example, a simple “arrives by Tuesday” or “Arrives on August 3” under the “Shipping” section works. 

We also suggest adding personalized product suggestions. If someone’s browsing size nine running shoes, you can show options with similar fit, related items, or customer favorites with better reviews. This will help your buyers find better options, shop more products, and feel more confident in their purchase.  

Now, what if they have questions about the products or shipping carrier options? How will they reach you? In this case, customer support step to the *spotlight.*

More than half of customers still prefer talking to real people. Use chatbots for simple Qs like tracking links. But for questions about size or shipping changes? It’s still best to have human support. If that’s not possible, keep your auto-replies more friendly.

Post-Purchase Strategies: Streamlining Fulfillment and Support

Every purchase leads to the next stage: the post-purchase experience.

But did you know that 83% of customers think most businesses don’t put enough effort into this part? That’s what Sorted found in their latest survey, and it’s a huge missed opportunity.

Here are a few ways to do that:

  • Add helpful links to your confirmation emails: Brands like Glossier include FAQs, return instructions, and how-to guides for using the product. This helps customers get answers fast without opening a new tab or waiting for a reply.
  • Give them a clean tracking page: No one wants to copy and paste tracking numbers into a carrier’s website. A branded tracking page keeps them updated and engaged, and makes your store look a lot more professional.
  • Double-check orders before they go out: Shipping the wrong item or missing something entirely is a fast track to a return. It’s worth doing one last review during packing, especially for larger or gift orders. Your team might see it as a small task, but for your customer, it can be the reason they come back or never order again.

Post-purchase can be hard to control, especially once the package is in transit. But tools like Parcel Panel Returns &Exchange make it easier. One of our clients, INTERSPORT Italia, used this tool to reduce inquiries by 43% and cut their return rate by 12.5%.

Make returns and exchanges hassle-free to reduce costs

Customized refunds
Real-time status updates
Branded return portal
Prevent fraud

Optimizing Your Return Policy to Reduce Returns

Your return policy is a shield that protects you and your customers. And like a shield, you need to create one that’s functional (and not just something made for display).

One of our electronic brand clients reduced its return rate by reviewing and revising its return policy. Their old one didn’t cover special cases, and serial returners took advantage of that “hole.” It was a nightmare, and they lost a lot of profit because of that.

But once they set clearer rules and added conditions for high-value items, they were able to bounce back and cut their return rate by nearly half.

Here’s how you can do the same:

How to Optimize Your Return Policy

The most important rule: Make it clear and specific. Say exactly what qualifies, what doesn’t, how long they have, and what condition the item should be in. Add examples if needed.

Also, you don’t have to give money back every time. Store credit or exchanges can work, especially if your product line offers a good variety. It keeps the revenue in your store and gives your shoppers another chance to be happy.

But what about serial returners? How can you stop them from abusing returns? Good question. 

You have to watch for signs like excessive returns from the same account or oddly timed return requests. And your policy can help by setting limits for return frequency and restricting returns on certain items (i.e., products bought on sale). 

If you want to learn more about this topic, we’ve written a full article on writing a good return policy. You might want to check it out. 

Leveraging Data and Feedback for Continuous Improvement

What happens after you apply the strategies above? Good question.

The tips we shared are great. They are easy to adapt, and while they’ll take some time to apply, you won’t have to shell out $$$ just to implement them.

But… they won’t work long-term if you skip these steps: measuring and continuous improvement.

How to Use Data and Feedback for Improvement 

You can’t find a solution if you don’t know what problem you have to fix. So, it’s important to analyze your return data. 

Check which items come back most often and why. Are people returning a certain product because of size? Quality? Delivery issues? This shows you where to focus.

Besides getting data from return requests, you could also collect them from customer feedback. Your customers will tell you what went wrong (if you give them the platform to do so). 

So, improve your review forms by asking open-ended (but relevant) questions like “What do you think about the product’s material?” 

Once you know the issue, it’s time for some action. This is your chance to apply what you’ve learned. For example, you can adjust your sizing chart, update your product descriptions, or revise your policy. These small changes can lead to big drops in return rates over time.

Okay. We’re done with this. Now, let us show you five ways to make your returns system faster, clearer, and less painful for both your team and your customers.

Improve Your E-Commerce Returns Process Efficiency

The best way to improve your return process includes setting rules, offering flexible solutions, and giving clear shipping options. 

Tip 1: Set Return Rules That Filter Out Risky or Abusive Requests

Start with your return window. If you don’t want to get requests six months after delivery, cap returns at 30 days (most customers who plan to return do so early anyway).

Next, limit variant replacements to what’s actually available. There’s no use offering size swaps if you’re out of stock.

Also, consider excluding certain SKUs. “Final sale” items, freebies from promos, and heavily discounted bundles are often abused.

One fashion brand we worked with blocked all “gift with purchase” returns. The result? Fewer requests from serial returners who had gamed the system before (you’d be surprised how fast the patterns stopped).

Tip 2: Offer Flexible Return Solutions That Work for You and Your Customer

If you always process return requests with refunds, you might be missing out on easier wins. Flexible return setups, like offering store credit, exchanges, or partial refunds, give you more control over the outcome and help reduce revenue loss.

One beauty brand we worked with shifted from automatic refunds to a “credit-first” approach. They added a small reward for choosing store credit, and it improved both retention and reorder rates.

Refund-only policies often feel final. But when shoppers can choose between getting their money back or exchanging the item, they’re less likely to leave.

Tip 3: Give Clear Return Shipping Options

As a store owner, you already know how expensive reverse logistics can be. But there’s another cost that’s harder to track. The environmental impact.

Optoro found that product returns in the US led to 24 million metric tons of CO₂ emissions in 2022. That’s the same as driving over five million cars for a year.

You can lower both the cost and environmental hit by doing the following:

  • Let customers use prepaid labels only when the return makes sense for your business.
  • Offer “green returns” for low-cost or bulky items. Sometimes, letting them keep it is smarter.
  • Be upfront about who pays for return shipping and how. Transparency avoids surprises and builds trust.

Tip 4: Use Automation to Handle Requests Faster and Reduce Inbox Chaos

Return requests usually follow the same path: pending, approved, refunded, and resolved. So why do so many stores still manage them manually? One reason is that they think automating it will take too much time to set up.

But here’s the thing: automation isn’t something as complicated as you see in the movies. You can start with a simple branded email with dynamic fields like order number or customer name. That alone can cut hours of manual work each week.

One of our clients used to handle each return update by hand. After setting up email flows, they cut their manual work by half and saw fewer “any update?” messages. (It also helped their support team stay sane.)

Tip 5: Use Return Data to Fix the Root Cause of Returns

And for the last tip, look inward. We wouldn’t have known the top reasons for returns earlier if experts didn’t review data in the first place. 

Start by tracking the basics: Which products are getting returned the most? What reasons keep popping up? Create a simple spreadsheet if necessary, and categorize each return by category or cause. Over time, those patterns become clearer.

For example, one of your customers (let’s say his name is Frank) returned a lamp and wrote in his note that the shade was “way more yellow than expected.” You check the photos on the product page and realize. Yup, they look more white than anything else.

So you update the photos and add a note about warm undertones. The result? Fewer returns from customers who were expecting something else.

If you want to apply these tips faster, tools like ParcelPanel Returns & Exchanges can help. With the free plan, you can manage up to 6 returns a month in one place. That includes a branded return page, return labels, email notifications, and custom return rules.

Conclusion

That’s it for this long guide!

Now that you’ve seen why returns happen and the strategies you can use to protect your profit margin, it’s time to take what you’ve learned and turn it into action.

Do you want an easier way to manage the process from start to finish? Try ParcelPanel Returns & Exchanges for free. It comes with a branded return portal, flexible return options, and data that helps you manage your returns better. 

FAQs about Reduce Returns in Ecommerce

Q1. How to lower returns?

Lower your returns by writing clear product descriptions, adding reviews, and using size guides. Also, use AR or virtual try-ons to let customers preview products.

Q2. How to deal with ecommerce returns?

You can handle ecommerce returns by making the process simple, fast, and clear. Offer prepaid labels, keep customers updated, and learn from return reasons to improve products or listings.

Shopify expert

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