How to cut your e-shop's return rate by 30 %

Returns cost more than most e-shops realise. On top of paying for transport twice, add the time spent on handling, quality control, putting the goods back into stock and often a drop in the value of the goods as well. With some product types a return can be so expensive that an originally profitable order turns into a loss-making transaction.

The good news is that returns can be reduced systematically. Not eliminated completely, but brought under control. In this article we go through 7 proven approaches that in practice cut the return rate by tens of percent.

1. First measure where returns come from

The first step is always to measure. Without up-to-date data on return rates by category, product, brand, size and country you are shooting in the dark.

It is not enough to watch the total number of returned orders. What you need to know is:

• which products are returned most often,
• what the most common reasons for returning are,
• whether returns concern a particular size, colour or variant,
• which countries or regions generate the most returns,
• which carriers or delivery methods cause the most problems.

Only once you know this data can you take concrete action. You may find, for example, that one shoe model has an above-average return rate because of a poor fit, that a particular product has inaccurate photographs, or that a certain category needs a better size chart.

2. Improve product descriptions, photos and videos

The second step is optimising your product pages. A large share of returns happens because the customer receives something other than what they expected.

The most common reason is simple: the product was not explained well enough on the website.

What helps most:

• more high-quality photographs from different angles,
• close-ups of the material, texture and finish,
• exact product dimensions,
• photographs of the product in real use,
• a video demonstration,
• clear information about size, cut, material or compatibility,
• a note about anything specific to the product.

If you sell clothing, writing „size M“ is not enough. The customer needs to know whether the cut is slim, oversized, short, long, stretchy or firm. If you sell a technical product, the customer needs to know what it is compatible with and exactly what the package contains.

The better the customer understands the product before buying, the smaller the chance they will return it after delivery.

3. Add size charts and recommendations

In fashion, footwear, sports equipment and accessories, size is one of the main reasons for returns. If a customer does not know which size to choose, they often order several variants at once and send some of them back.

That significantly increases the e-shop's costs.

What can help:

• clear size charts on every product,
• a size recommendation based on height, weight or body type,
• information on whether the product fits small or large,
• a comparison with standard sizing,
• customer reviews that mention sizing,
• a simple size adviser.

Short notes like these work very well too:

„The model is 180 cm tall and is wearing size L.“

Or:

„This product has a smaller cut, we recommend going one size up.“

Little details like these often decide whether the customer gets the choice right the first time.

4. Collect reasons for returns and act on them

Whenever a customer returns a product, you should always ask why. A generic „it does not suit me“ option is not enough. It tells you nothing.

It is better to offer specific reasons:

• the size does not fit,
• the product looks different from the photo,
• wrong colour,
• damaged goods,
• delivery took too long,
• ordered by mistake,
• poor quality,
• not compatible with my device,
• I found a better alternative.

You should evaluate these reasons regularly. If „looks different from the photo“ keeps coming up for one product, the problem is not with your customers but with how the product is presented. If „too small“ appears often for a particular size, the size recommendation needs adjusting.

Reasons for returns are extremely valuable feedback. E-shops often merely record them without doing anything with them. That is usually where the biggest room for reducing returns lies.

5. Improve packing and pre-dispatch checks

Not all returns are caused by a poor decision on the customer's side. Some of them originate right in the warehouse or in logistics.

Typical problems:

• the customer receives the wrong product,
• accessories are missing,
• the product arrives damaged,
• the parcel is badly packed,
• the label is stuck on the wrong shipment,
• the goods fail the outgoing inspection.

These mistakes are particularly expensive for an e-shop, because you can prevent them. It helps to introduce a simple check before dispatch, barcode scanning, photo documentation of the shipment or better packing rules for sensitive goods.

With more expensive or fragile products it pays to have a clear packing standard – a different procedure for glass, electronics, cosmetics or high-value products, for instance.

Every dispatch error increases not only your costs, but also the risk that the customer will never come back.

6. Set up communication before and after the purchase

Many returns happen because the customer is not sure what they are buying. That is why it is important to help them before the order is placed.

What can work:

• live chat,
• buying advice,
• frequently asked questions on the product page,
• recommended alternatives,
• product comparison,
• automatic recommendations based on parameters.

If a customer is torn between two products, good advice before the purchase can prevent a return after it.

Communication after the order matters too. The customer should know when the parcel will arrive, what to expect in it and how to use the product properly. With some products a simple manual, a video or an e-mail with tips after delivery goes a long way.

With electronics, furniture, sports equipment or cosmetics, for example, incorrect use can lead to dissatisfaction and a subsequent return.

7. Track products with a high return rate and decide by data

Some products simply are not worth selling in their current form. They may sell well and at the same time have such a high return rate that they drag down your overall margin.

That is why it pays to keep an eye on:

• products with the highest number of returns,
• products with the highest return percentage,
• products where processing a return costs the most,
• products that cannot be sold again at full price once returned.

With products like these you have several options. You can adjust the description, the photographs, the size chart, the price, the size recommendation or the packaging. If the problem keeps repeating, it may be better to discontinue the product, replace it or sell it only with a clearer warning.

The important thing is not to look at revenue alone. A product that sells well is not automatically profitable if it is returned too often.

What a practical plan for reducing returns can look like

If you want to reduce returns systematically, we recommend starting simply:

• Export your returns data for the last 3 to 6 months.
• Break it down by product, category, country and reason for return.
• Pick the 10 products with the highest return rate.
• Review their photographs, descriptions, dimensions and customer reviews.
• Fill in any missing information.
• Adjust the size recommendations or technical parameters.
• After 30 to 60 days compare the results.

You do not have to rebuild the whole e-shop straight away. The biggest effect often comes from optimising the small group of products that generate the most returns.

Conclusion

Reducing returns is not a one-off tweak to your complaints process. It is a combination of better data, more accurate product information, better logistics and better communication with the customer.

Once an e-shop starts systematically tracking the reasons for returns and working with them, it can cut the return rate by tens of percent. In practice that means lower logistics costs, less work for customer support, happier customers and a better margin.

The biggest difference usually comes from simple things: better photographs, a more accurate description, a clear size chart, a check before dispatch and regular evaluation of the data.

Returns cannot be eliminated completely. But they can be managed. And that is exactly what separates e-shops that needlessly lose money on returns from those that have them under control.