Consumer Returns in eCommerce: Causes, Costs and How to Reduce Them

Product returns are a growing challenge for eCommerce retailers. Online return rates now sit at around 20%, compared to approximately 9% for physical stores – making returns management a critical part of any online retail strategy.

There are several reasons for this disparity. Shoppers can’t physically see or touch products before purchasing, sizing can be inconsistent, and returning items online is often far more convenient than visiting a store in person.

While returns can’t be eliminated entirely, having a clear, customer-focused returns process – alongside strategies to reduce avoidable returns – is a strong starting point. Understanding why customers return items, and how they prefer to do so, is key.

Increasing Options for Making Returns

Consumers now have more ways than ever to return unwanted items. While every online retailer should already offer a straightforward returns process, common options include:

• Returning items via the Post Office

• Booking a courier collection from home or work

• Using specialist returns providers such as Doddle

Under the Consumer Contracts Regulations, shoppers have the right to return goods within 14 days if they change their mind. Many online retailers choose to go further, offering extended or more flexible returns policies.

Making returns easy doesn’t just reduce friction – it actively builds trust. A smooth, hassle-free experience gives retailers a valuable opportunity to demonstrate excellent customer service, increasing the likelihood of repeat purchases and long-term loyalty.

The Most Common Reasons Consumers Make Returns

Some returns are unavoidable, but many stem from issues that can be addressed. The most common reasons include:

• Ordering the wrong size or product

• The product not matching expectations or its online description

• Items arriving damaged

• The retailer sending the wrong product or size

• Gifts being returned with a receipt

• “Wardrobing” (particularly in fashion – items worn once and returned)

• The customer simply changing their mind

Understanding these drivers helps retailers identify where improvements can make the biggest impact.

How Businesses Can Reduce Return Rates

Not every return can be prevented. When a customer changes their mind, orders incorrectly, or returns a gift, there’s often little that can be done. However, other causes point to clear areas for improvement.

If customers feel products don’t meet expectations, it’s worth reviewing listings in detail. Improving product descriptions, sizing guidance and imagery can significantly reduce dissatisfaction.

Where incorrect items are being shipped, an internal review of picking, packing and fulfilment processes is essential.

To reduce returns over time:

• Make it easy for customers to choose the right product first time

• Use clear, accurate descriptions and high-quality images

• Include customer reviews to set realistic expectations

• Regularly review suppliers, delivery partners and fulfilment workflows

This proactive approach helps minimise damage in transit, reduces errors, and improves the overall customer experience.

Why a Strong Returns Management Process Matters

An effective returns process doesn’t just reduce costs – it drives loyalty. Research shows:

• 67% of shoppers check a retailer’s returns policy before buying

• 79% expect free returns or an easy-to-print label

• 92% say they would shop again if the returns process is simple

Clear, visible returns policies are essential. Avoid unnecessary friction, such as long surveys or complicated forms, which can deter future purchases. Instead, focus on:

• Simple, clearly communicated policies

• Free or low-cost return labels

• Easy-to-find drop-off or collection options

• Proactive, transparent communication throughout the process

Supporting Returns with Whistl Parcels

At Whistl Parcels, we support retailers with reliable delivery management and scalable returns solutions. From first-time delivery through to managed parcel returns, we help businesses deliver a seamless end-to-end experience that keeps customers coming back.

Whether you’re looking to optimise your outbound deliveries, streamline returns, or outsource fulfilment entirely, our solutions are designed to support growth while keeping customer satisfaction front and centre.