Managing returns is one of the biggest challenges for online retailers, directly affecting profitability and customer loyalty. In 2024, the average e-commerce return rate reached 24.5%, equating to $362 billion in merchandise. Such staggering numbers highlight why business leaders must treat returns as a priority, not an afterthought. Reducing e-commerce return rates is about protecting margins while building resilient, future-ready operational models. This is why decision-makers across finance, procurement, and operations are increasingly focusing on strategies that lower return volumes, strengthen customer relationships, and streamline supply chains.
common reasons for e-commerce return
Understanding the causes behind returns provides the foundation to prevent e-commerce returns. Each reason points to an opportunity for businesses to refine processes and enhance customer experience.
- Damaged or defective items: Products that arrive broken or faulty reduce trust, increase costs, and weaken brand credibility.
- Mismatch with descriptions: Items that fail to match online details make customers feel misled and more likely to return them.
- Wrong product delivery: Incorrect fulfilment creates frustration, leads to avoidable returns, and wastes logistics resources.
- Incorrect size or fit: Apparel and lifestyle products often face high return rates when customers cannot select the right size.
- Late deliveries: Products that arrive after the promised date often lose relevance, especially for time-sensitive occasions.
- Perceived lack of value: Items that seem overpriced for their quality drive dissatisfaction and higher return volumes.
- Customer dissatisfaction: Even with accurate descriptions and timely delivery, some customers simply do not like the product.
High return volumes affect the bottom line, disrupt inventory planning, and create ripple effects across logistics and customer service. Ultimately, a poor e-commerce returns rate damages reputation and customer confidence – outcomes every business must avoid.
top 10 strategies to reduce e-commerce return rates
Preventing unnecessary e-commerce returns requires a mix of operational discipline, data-led insights, and customer-first thinking. The following strategies can help businesses move beyond reactive refunds to proactive solutions.
create accurate and detail-rich product descriptions
Clear, precise product descriptions set expectations before purchase. Outlining dimensions, materials, specifications, and package contents reduces disputes later. Detailed information also helps customers compare options and make confident decisions.
enhance product visuals with images and videos
Visual clarity prevents misunderstandings. High-resolution images, 360-degree views, and demonstration videos allow buyers to see exactly what they will receive. Customers who can visualise a product in context are less likely to be disappointed.
offer dynamic and reliable sizing guides
Size-related returns drain margins. Interactive size charts and AI-based recommendations help customers choose correctly. Dynamic guides that account for body types and product fit minimise uncertainty and improve confidence.
leverage the power of customer reviews
Reviews provide real-world validation. Verified ratings, visual testimonials, and Q&A sections enable shoppers to learn from others’ experiences. Encouraging honest feedback not only builds credibility but also highlights areas for product or service improvement.
promote exchanges to retain sales
Encouraging exchanges instead of refunds helps preserve revenue and customer relationships. By making the process simple and transparent, businesses can retain sales and boost loyalty.
improve packaging and delivery experience
Packaging must balance protection with presentation. Durable materials prevent shipping damage, while branded unboxing adds value. Combined with clear delivery timelines and reliable logistics, these steps ensure items arrive in perfect condition and on time.
personalise recommendations using AI
AI-driven tools match customers with the right products. From personalised fit suggestions to tailored recommendations, predictive technology reduces mismatches and strengthens satisfaction. By anticipating needs, businesses can bring down their average e-commerce return rates.
strengthen customer support and communication
Transparent communication builds trust. Proactive order updates, responsive live chat, and helpful post-purchase guidance reassure customers at every stage. Strong support prevents small issues from escalating into full returns.
analyse return data to identify patterns
Data analytics reveals hidden patterns behind returns. By studying these reasons, businesses can identify recurring quality issues, supplier gaps, or even fraudulent behaviour. These insights help refine sourcing, improve policies, and reduce long-term return volumes.
design flexible yet controlled return policies
Returns are inevitable, but policies shape customer trust. Easy-to-understand guidelines and liberal exchanges build loyalty, while fair controls prevent abuse. Well-balanced policies make customers feel valued, even when a return is necessary, and with a hassle-free process, 92% of customers are likely to buy from you again.
Technology is a powerful enabler, helping businesses lower e-commerce return rates. Predictive analytics, AI-driven quality control, fraud detection, and integrated inventory platforms minimise errors and protect margins. Infosys BPM brings these capabilities together through comprehensive digital-first e-commerce solutions. Infosys BPM offers diverse e-commerce offerings spanning product data management, e-commerce operations, marketplace services, and more. These enable companies to improve efficiency and drive sustainable growth while keeping the average e-commerce return rate under control.
conclusion
E-commerce returns are more than just an operational issue; they influence profit, brand reputation, and long-term customer loyalty. By understanding root causes and leveraging proven strategies, businesses can dramatically lower the average e-commerce return rate. Leveraging technology and focusing on customer-centric practices ensures decision-makers not only protect margins today but also shape future-ready operations. While returns are inevitable, proactive strategies can allow businesses to transform them into opportunities for stronger relationships and sustainable growth.
