Strategies for Reducing Return Rates in E-commerce

Last year I had a call with the VP of ecommerce of a $300M+ retail company who was convinced their 32% return rate was "just the cost of doing business" When I dug into their data I discovered that almost half of post-purchase revenue loss is preventable. This happens all the time, retailers are pouring their heart and budget into hitting sales targets, only to watch a third of that revenue disappear due to inefficiencies and refunds. It's demoralizing to be a retailer these days. It doesn't have to be this way! Here's the playbook we used to help that company recover over $6.8M in just 4 months: Most retailers focus on the wrong metrics, for example they celebrate $10M in sales while silently losing $3.2M to returns, and another $1M to operational inefficiency, plus $800K to return fraud and abuse. Quick observations: Your "best customers" are killing you! 37% of "VIP shoppers" are serial returners, they look great in your CRM but they're negative margin customers. We found one customer returning over $14K → this is totally preventable! This is our framework that we developed after working with hundreds of enterprise retailers in the past 5 years: Prevent returns Enable size/style swaps and allow for uneven exchanges (more expensive or cheaper options) Store credit options instead of refund Relevant product recommendations for exchange and upsell Analyze the return reasons by product - this can save you a lot of products from being returned! Results: Over 60% reduction in refunds b) Prevent fraud and abuse Fraud rules to prevent return abuse Automate policy enforcement and verification of product quality before the product is sent back Product inspection workflows at the warehouse level Results: the highest we seen last year for a customer was over 90% c) Streamline Operations Setup rules for returns routing to the closest warehouse or outlet stores Minimize clicks and enable a scan, scan, refund workflow Centralize all returns data and actions into one system, to prevent system switching Results: 42% faster processing Returns are not a cost of doing business. They're a goldmine of hidden opportunities. But here's the truth: Most retailers will read this and do nothing. They'll keep losing millions because "that's just ecommerce." The smart ones will see this as the competitive advantage it is. What side do you want to be on? P.S. If you're a retail executive seeing 20%+ return rates, DM me. I'll share our full framework as it’s way more detailed.

Everyone analyzes their top 10%. But the biggest growth lever is hiding in the bottom. Specifically: - First time customers who never bought again - High refunders - Low AOV buyers with high CAC What to do: 1. Interview them. Yes, really. Offer a gift card. Ask what disappointed them. 2. Rebuild a “bad experience” persona. This is your anti avatar. What they expected. Where it broke. 3. Rewrite your post purchase flow with these moments in mind: - What confusion did they have? - What expectation did you overpromise? - Where did their trust break? Example: One brand realized 60% of refunds were from people misreading sizing charts buried in image only emails. They added a Day 0 email with a plain text sizing confirmation based on what they ordered. The results: - Refunds dropped 22% - NPS went up - Repeats increased 14% Don’t ignore the “bad” customers. They’re telling you where your brand is bleeding.

Your Prime Day sales spike means nothing if 30% of it comes back in a return box. That’s the average e-commerce return rate, and it only climbs higher after big promos. With Prime Day fast approaching, how ready are your listings for this big sales event? Here are some of the strategies my team of Amazon experts do for our clients to help prevent product returns after Prime Day: According to the 2025 Global Returns & Profit Impact Report by Rithum, 61% of consumers return products because of poor fit, and 33% send items back due to discrepancies between what was shown and what was received. These two issues alone account for the majority of e-commerce returns and both are fixable with better listing optimization. To reduce returns based on these findings: 👉 Make size charts and fit guides easy to find and understand—don’t bury them in the A+ 👉 Ensure your main and secondary images match exactly what ships, down to accessories and packaging 👉 Include real-use visuals and infographics to set clear expectations before purchase Returns are predictable. And preventable. If your listing is vague, outdated, or dressed up to trick the algorithm, you're setting yourself up for a returns hangover. Amazon buyers don’t want surprises. They want certainty. Show the right info, and you won’t have to deal with regret boxes showing up on your doorstep two weeks later.

𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝘁𝗼 𝗥𝗲𝗱𝘂𝗰𝗲 𝗥𝗲𝘁𝘂𝗿𝗻 𝗥𝗮𝘁𝗲𝘀 𝗮𝗻𝗱 𝗔𝘃𝗼𝗶𝗱 𝗙𝗲𝗲𝘀 And it’s not just about refunds anymore. Sellers are now getting slapped with 𝗲𝘅𝘁𝗿𝗮 𝗿𝗲𝘁𝘂𝗿𝗻 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴 𝗳𝗲𝗲𝘀 Even if the product comes back unused. Here’s how smart brands are getting ahead of it: 𝟭. 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗖𝗼𝗻𝘁𝗿𝗼𝗹 Check every product before listing and after receiving it. Regular quality checks reduce returns caused by defects and protect your brand image. 𝟮. 𝗔𝗰𝗰𝘂𝗿𝗮𝘁𝗲 𝗗𝗲𝘀𝗰𝗿𝗶𝗽𝘁𝗶𝗼𝗻𝘀 & 𝗜𝗺𝗮𝗴𝗲𝘀 Avoid returns by writing clear, detailed product descriptions and specs. Add accurate size guides and high-quality, real photos to set the right expectations. 𝟯. 𝗦𝘁𝘂𝗿𝗱𝘆 𝗣𝗮𝗰𝗸𝗮𝗴𝗶𝗻𝗴 Use strong, protective packaging to prevent damage during transit. Damaged items lead to returns and customer dissatisfaction. 𝟰. 𝗣𝗿𝗼𝗺𝗼𝘁𝗲 𝗘𝘅𝗰𝗵𝗮𝗻𝗴𝗲𝘀, 𝗡𝗼𝘁 𝗥𝗲𝗳𝘂𝗻𝗱𝘀 Encourage customers to exchange instead of returning. It saves the sale, especially with sizing issues in fashion. 𝟱. 𝗦𝗲𝘁 𝗖𝗹𝗲𝗮𝗿 𝗘𝘅𝗽𝗲𝗰𝘁𝗮𝘁𝗶𝗼𝗻𝘀 Be upfront about shipping times, especially for custom or international products. Clear timelines reduce complaints and returns. 𝗜𝗻 𝗲𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗲, 𝗲𝘃𝗲𝗿𝘆 𝗺𝗲𝘁𝗿𝗶𝗰 𝘁𝗲𝗹𝗹𝘀 𝗮 𝘀𝘁𝗼𝗿𝘆. Product Return Rate? It tells you how much you're losing and how much you could be saving. Handle it well, and your profits will thank you.

𝗥𝗲𝘁𝘂𝗿𝗻 𝗿𝗮𝘁𝗲𝘀 𝗰𝗮𝗻 𝘀𝗶𝗻𝗸 𝘆𝗼𝘂𝗿 𝗽𝗿𝗼𝗳𝗶𝘁𝘀! Here's how to lower them AND keep customers happy. 👇 #𝟭 : 𝗦𝘁𝗮𝗿𝘁 𝗯𝘆 𝗔𝗻𝗮𝗹𝘆𝘇𝗶𝗻𝗴 𝗡𝗲𝗴𝗮𝘁𝗶𝘃𝗲 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 The best insights come from your own reviews. Look for common reasons customers are returning products and address these issues. If customers mention misleading sizing, inaccurate colors, or poor-quality materials, make sure to update your product descriptions, images, and details accordingly. Many 1-Star reviews can be avoided simply by updating your display page. #𝟮 : 𝗜𝗺𝗽𝗿𝗼𝘃𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗗𝗲𝘀𝗰𝗿𝗶𝗽𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗜𝗺𝗮𝗴𝗲𝗿𝘆 Clear and detailed product descriptions and images help set accurate expectations. Includes dimensions, material details, usage instructions. etc. to ensure customers know exactly what they're buying. Content accuracy reduces returns due to unmet expectations. #𝟯 : 𝗣𝗿𝗼𝘃𝗶𝗱𝗲 𝗨𝘀𝗲 𝗮𝗻𝗱 𝗖𝗮𝗿𝗲 𝗜𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻𝘀 Often, products are returned because customers aren't sure how to use or care for them. Includes easy-to-follow instructions for setup, usage, and maintenance in the product listing or as a product insert. This not only reduces returns but also increases customer satisfaction. #𝟰 : 𝗘𝗻𝘀𝘂𝗿𝗲 𝗣𝗮𝗰𝗸𝗮𝗴𝗶𝗻𝗴 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝘀 𝘁𝗵𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 Damaged items are a major cause of returns. Make sure your product packaging is sturdy enough to withstand Amazon's fulfillment process. Packaging should protect fragile items and prevent any shipping-related damage. Investing in durable, tamper-proof packaging can prevent these avoidable returns. #𝟱 : 𝗢𝗳𝗳𝗲𝗿 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝘃𝗲 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 When customers encounter a minor issue, good customer service can prevent them from initiating a return. Respond promptly to questions, provide troubleshooting help, and offer solutions like partial refunds or replacements when appropriate. Effective customer support can turn potential returns into positive experiences. 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆: Reducing your return rate is about setting accurate expectations and being proactive. Don't wait for them to come. Tackle them ahead of time. _ Find this useful? ♻️ If so, repost it to your network and follow Ian Rollin Berry for more.