eCommerce Returns: UK Consumer Trends and Best Practice

The rise in eCommerce returns shows no sign of slowing down as consumers and retailers continue to prioritise hassle‑free shopping experiences. Today’s customers expect online returns to be low cost – or free – and as seamless as possible.

At the same time, eCommerce businesses are working harder than ever to streamline returns management and reduce the cost and complexity of handling returned parcels. Research suggests that one in three online purchases is returned, compared to just 9% of in‑store purchases. For retailers, this presents a costly and time‑consuming operational challenge.

This updated eCommerce Returns research from Whistl explores the current landscape and shares best‑practice advice to help eCommerce leaders save time and money while simplifying the consumer returns journey.

The Growth of the Reverse Logistics Market

Reverse logistics (returns) is now big business. As consumers return more items than ever, the global reverse logistics market is forecast to reach $954.5 billion by 2029 – an increase of more than $250bn compared to 2023.

Managing this growth is no easy task. For online retailers, returns represent lost sales, additional handling costs, and operational strain as items need to be retrieved, inspected and re‑stocked.

In the UK alone, consumer returns are estimated to cost retailers around £60bn each year, with eCommerce businesses particularly exposed. Online returns typically cost £3 more than in‑store returns, and in some cases can cost twice as much as the original delivery.

The good news? Retailers are increasingly taking a proactive approach – finding smarter ways to balance operational costs while still meeting (and exceeding) customer expectations.

Four Key Focus Areas in Modern Returns Management

1. Greater control and flexibility

Savvy retailers are rethinking their returns policies. Instead of automatic refunds, many now offer exchanges or store credit, adjust return fees dynamically, or introduce annual returns subscriptions to offset costs.

2. Easy‑to‑use returns platforms

Technology is central to a positive returns experience. Intuitive, end‑to‑end returns platforms – such as a dedicated consumer returns solution – help simplify the process for both retailers and shoppers.

3. A stronger focus on sustainability

Sustainability is no longer optional. Retailers are exploring ways to reduce waste, recycle packaging and cut carbon emissions, making reverse logistics more environmentally responsible.

4. Omnichannel as a competitive advantage

The line between online and in‑store retail continues to blur. Offering multiple return channels – including lockers, stores, home collection and drop‑off locations – is becoming a key differentiator.

eCommerce Returns Statistics: The UK Picture

The UK is a nation of serial returners, with 71% of online shoppers returning items at varying frequencies. Unlike in‑store returns, online returns bring added uncertainty around tracking, condition and fraud risk, particularly when retailers lack full visibility across carrier networks.

What are consumers returning – and why?

Fashion drives the highest return rates. The most returned items among UK consumers are:

• Clothing – 27%

• Shoes – 15%

• Bags and accessories – 14%

Beyond volume, the reasons for returns are also shifting. A 2023 OnePoll/Signifyd survey found that:

• 32% admitted making false damage or refund claims

• 28% returned items after finding a better price elsewhere

• 27% falsely claimed an item had not been received

These trends highlight the growing need for better returns data, controls and visibility within the returns journey.

“Buy, Try, Return” is now mainstream

The “Buy, Try, Return” mindset has accelerated since the pandemic and is no longer limited to younger shoppers:

• 38% of UK shoppers feel more confident returning online purchases

• 49% of shoppers returned goods in the past year

• This rises to 60% among 16–34‑year‑olds

This behaviour reinforces why frictionless returns, supported by reliable multi‑carrier parcel delivery networks, are now a competitive necessity.

UK Consumer Expectations Around Returns

Whistl Group’s eCommerce Consumer Research shows that:

• 65% of shoppers expect returns to be free in all circumstances

• Only 3% believe it’s reasonable for customers to pay for returns

However, there is flexibility. If free returns aren’t offered, 48% of frequent online shoppers would consider paying a £20 annual returns fee, provided the process is simple and transparent.

eCommerce Returns Behaviour and Costs

Statista data highlights that in 2023:

• The average cost of an online return to leading UK retailers was £13.10

• For fashion items, this dropped to £3.19

Consumers are willing to contribute, but only to a point. UK shoppers will pay up to:

• £6.80 to return items worth £150

• £4.70 to return items worth £15

The Post Office remains the most popular return destination (42%), followed by home collection (39%) – despite only 6% of retailers currently offering it. This gap presents a clear opportunity for retailers working with eCommerce fulfilment and returns specialists to differentiate through convenience.

Sustainability and Returns

Sustainability is increasingly influencing purchase decisions:

• 74% of consumers want retailers to be more sustainable

• 57% are willing to pay more for products produced and transported responsibly

Retailers that combine efficient returns with lower‑carbon delivery options, including international parcel delivery services, are better placed to meet these expectations.

Best Practice for Managing eCommerce Returns

With the right technology and processes, retailers can reduce return volumes while improving customer satisfaction.

Effective ways to reduce eCommerce returns

Understand why items are coming back

Returns data is a goldmine. Analysing it helps identify and prevent common issues such as:

• Broken or faulty items

• Incorrect sizes sent

• Late deliveries

• Products not matching descriptions

Review Supply Chain Inefficiencies

1. Inventory management

• Return saleable items to stock in real time

• Implement refurbishment processes where needed

• Prioritise fast refunds to encourage repeat purchases

2. Pick and pack

Accuracy at this stage reduces damage and errors. Best practice includes:

• Regular item and packing inspections

• Protective packaging and correct parcel sizing

• Fragile labelling where required

3. Despatch

Working with eCommerce‑focused fulfilment and delivery specialists, such as Whistl's eCommerce fulfilment services, helps minimise delays and damages through:

• Multi‑carrier choice

• Consolidated buying power

• Late cut‑off times

• End‑to‑end account management

4. Customer service

Whether in‑house or outsourced, customer service teams need full visibility of orders and returns to provide accurate, timely updates.

Ways to Manage eCommerce Returns

Return to Store

For omnichannel retailers, in‑store returns allow for immediate inspection, faster refunds and additional in‑store purchase opportunities.

Outsource to a 3PL Fulfilment Partner

Returns management can be built into a fulfilment solution, ensuring:

• Clear logging of return reasons

• Item inspection and refurbishment

• Efficient refunds

• Saleable stock returned to inventory

Use a Consolidator Returns Platform

Returns management software has evolved rapidly. Consolidators like Whistl Parcels simplify complexity by offering fully managed, multi‑carrier consumer returns solutions.
Using a specialist consumer returns platform  helps retailers:

• Improve customer satisfaction

• Encourage repeat purchases

• Gain insight into consumer behaviour

• Reduce operational overhead

Consumer Returns by Whistl Parcels

Delight your customers with effortless returns

Are eCommerce returns draining your time and profits? Consumer Returns by Whistl Parcels is designed to simplify the process for both retailers and shoppers.

Customers manage their returns through a simple online dashboard, choosing from convenient drop‑off locations or home collection. From there, Whistl Parcels manages the entire journey via trusted carrier partners, with live tracking events and full visibility.

Key benefits for retailers:

• One centralised returns portal

• Configurable free or paid returns options

• Fraud‑reduction controls

• Real‑time reporting and analytics

• Paperless returns as standard

Benefits for consumers:

• Full tracking from drop‑off to refund

• Clear visibility of return status and timelines

With Whistl Parcels, you can reduce costs, improve sustainability and deliver a returns experience that keeps customers coming back.

Find out more about Consumer Returns by Whistl Parcels and how we can simplify your returns process.