In the world of eCommerce, where convenience reigns supreme, the returns process often remains hidden from view – yet it’s a costly challenge that continues to grow. eCommerce returns now represent one of the most significant financial burdens for online retailers. As more consumers shop online, driven by ease and accessibility, they increasingly expect seamless and free returns. Managing customer expectations is crucial in this context, as clear communication regarding shipping times and delays, offering a seamless return process, and providing thorough product descriptions and high-quality images can align with what customers anticipate receiving. But behind this convenience lies a complex and expensive reality. In 2024, returns are more than just logistical challenges; they are a critical touchpoint with lasting impacts on customer loyalty, profitability, and even the environment.
Let’s dive into the costs, challenges, and strategies retailers can employ to turn eCommerce returns from a financial drain into a competitive advantage.
High Costs Demand Strategic Management: Returns cost retailers between $21 and $46 per item on average, impacting profits. Effective management strategies, such as incentivizing in-store returns and using technology to identify serial returners, can help reduce these financial burdens.
Technology Transforms the Returns Process: AI and AR tools can reduce return rates by enhancing product fit accuracy, offering virtual try-ons, and analyzing customer feedback for proactive improvements. These solutions create a more informed shopping experience, leading to fewer returns.
Returns Policies Influence Customer Loyalty: Transparent, customer-friendly return policies significantly impact customer satisfaction and loyalty. Flexible options, such as extended return windows and eco-friendly return methods, can set brands apart and drive repeat business.
WeSupply reduces the costs of eCommerce returns: with automation, smart analytics, and sustainable options, turning returns into opportunities for revenue and loyalty. Get started with WeSupply to simplify and optimize your returns process!
Ecommerce returns are an inevitable part of online shopping. With the rise of online shopping, ecommerce businesses are facing increasing challenges in managing returns. According to the National Retail Federation, the average ecommerce return rate is around 20-30%, which is 2-3 times higher than the return rate of brick and mortar stores. In this article, we will explore the state of ecommerce returns, the impact of returns on customer satisfaction, and provide tips on how to reduce return rates and increase customer satisfaction.
Ecommerce returns are a significant concern for online retailers. The National Retail Federation estimates that consumers returned products worth $817 billion in 2023, which represents just over 16% of total retail sales. The average ecommerce return rate is around 20-30%, which is higher than the return rate of brick and mortar stores. This is because online shoppers cannot physically try on products before purchasing, leading to a higher likelihood of returns.
Returns can have a significant impact on customer satisfaction. A well-executed return process can increase customer loyalty and encourage repeat business. On the other hand, a poorly managed return process can lead to customer dissatisfaction and negative reviews. According to a study by Richpanel, 54% of buyers say that free returns or exchanges are the second biggest influence on whether they buy from a brand or not. Therefore, it is essential for ecommerce businesses to have a clear and comprehensive return policy in place.
In 2024, return rates continue to climb, with costs ranging between $21 and $46 per item. Returns affect not only high-ticket items but nearly every product category, with fashion and electronics experiencing particularly high return rates. Processing returns involves more than just shipping: there’s labor, inspection, restocking, and even disposal when products can’t be resold.
Offering free return shipping can enhance customer satisfaction but also adds to the financial burden for retailers. For an industry already operating on thin margins, these costs quickly add up. McKinsey’s research reveals that some companies have even resorted to discarding certain returns outright, as the cost of processing them outweighs any potential recovery. For companies handling thousands of returns monthly, this burden eats into profits, making returns management a high-stakes area that demands more attention and strategy.
WeSupply helps businesses break down and manage the high costs of returns, providing tools that streamline processes and protect revenue. With WeSupply’s automation and analytics, retailers can efficiently handle returns while focusing on customer satisfaction and sustainability.
Customer-Friendly Self-Service: Empower customers to handle returns independently, reducing customer support demands and operational expenses.
Smart Analytics for Cost Reduction: Use data insights to adjust return policies and improve product listings, reducing return rates and optimizing inventory.
Fraud Prevention Tools: Detect and deter return abuse with policy enforcement and verification tools to minimize costs from fraudulent returns.
With WeSupply, you can turn the high cost of returns into a data-driven, efficient process that supports growth and sustainability.
Simplify Returns for Your Customers and Support Team
Book a quick call with our experts to see how WeSupply can help you: simplify the Return experience with just a few clicks, reduce customer service calls and manual processing, notify your customer about their refund, automate returns and reduce user error
Return policies are not only a critical customer service element but also a powerful factor in purchasing decisions. In fact, 60% of shoppers review a company’s return policy before making a first purchase. If a return policy is too restrictive or confusing, customers are likely to abandon the purchase or choose a competitor with a more generous policy.
Offering store credit can be a flexible option that enhances customer satisfaction by providing alternatives during the returns process and retaining sales.
The key elements of an effective return policy include clarity on return windows, accessible return methods (e.g., in-store or drop-off points), and transparent shipping costs. As consumers increasingly consider environmental impacts, brands can also promote sustainable return options, which appeal to environmentally conscious shoppers while reducing return-related emissions and costs.
WeSupply empowers businesses to shape customer decisions by offering return policies that are clear, flexible, and customer-friendly. With these adaptable policies, you can remove return-related hesitations and build customer trust.
Green Returns: Offer a “Keep the Item” option for low-cost returns, reducing waste and providing a transparent, eco-friendly solution for non-resellable items.
Clear Return Windows: Avoid confusion with customizable return windows that align with order, fulfillment, or delivery dates.
International Returns and Country-Specific Rules: Set up region-based return rules, including custom return addresses and fees for specific countries.
WeSupply makes returns a deciding factor in favor of your brand, giving customers confidence and clarity in every purchase.
Artificial intelligence (AI) and augmented reality (AR) are revolutionizing eCommerce returns by addressing some of the core issues that drive returns, such as sizing and product expectations. Virtual try-ons, especially in fashion and beauty, help customers gauge fit more accurately, reducing the likelihood of dissatisfaction.
A well-trained customer service team is crucial in handling returns and providing real-time support. Equipping them with the right tools and authority can enhance issue resolution and foster a customer-first attitude.
AI-driven chatbots and customer support systems enhance the returns process by providing real-time support. AI can also analyze customer feedback and automatically suggest sizing recommendations on product pages. These technological solutions help preempt returns by empowering customers to make better-informed purchasing decisions.
Managing returns effectively is crucial for retaining customers, especially given the higher return rates associated with online purchases.
For retailers, reducing the cost of returns involves strategic adjustments across the customer journey. Here are a few key strategies:
Incentivize In-Store Returns: Encourage customers to return items in-store rather than by mail. This not only saves on shipping costs but also increases the likelihood that returned items can be resold quickly.
Identify and Address Bracketing Behavior: “Bracketing” – when customers buy multiple sizes or variations of the same item – is a common driver of returns. Sizing guides and callouts during checkout can help customers choose the right option upfront, reducing bracketing and improving satisfaction.
Flexible Return Windows: Offering shorter return windows during peak seasons can limit costly returns while protecting margins, as does the option for customers to pay a small fee to extend the window.
WeSupply helps businesses optimize their return strategies, focusing on reducing financial impact and driving customer loyalty through flexible and efficient return options. With WeSupply, you can transform returns from a loss into an opportunity for revenue and brand loyalty.
Buy In-Store, Return Online: Offer convenient online returns through our Self-Service Return Center, keeping it easy for your customers.
Flexible Exchange Options: Allow customers to exchange items for products of equal, higher, or same value, or even reship the same item.
Incentivize Exchanges: Boost average order value by offering instant store credit, rewarding customers who choose exchanges over refunds.
Refund to Store Credit, Gift Card, or Coupon Code: Entice customers to return and shop again, building trust and enhancing loyalty.
Clear Return Windows: Avoid confusion with custom return windows by order date, fulfillment date, delivery date, SKU, or specific holiday terms.
See how much you can save by optimizing your return strategy with WeSupply. Our ROI Calculator helps you visualize the financial benefits of streamlining returns and encouraging exchanges, giving you a clear picture of the impact on your bottom line.
Environmental concerns have become more prominent, especially among younger consumers. eCommerce returns often have a significant carbon footprint due to transportation and packaging. By educating customers on the environmental impact of frequent returns, retailers can encourage mindful purchasing. Some companies display reminders about sustainability during checkout, which can discourage shoppers from buying with the intent to return.
Aligning with consumer values around sustainability not only helps the environment but also strengthens the brand image, as many customers actively seek brands with eco-friendly policies.
WeSupply helps businesses reduce the environmental impact of product returns, offering customer-friendly, eco-conscious solutions that support sustainability while boosting customer satisfaction.
Green Returns: Allow customers to keep low-cost items, saving on return shipping costs and reducing landfill waste.
Automatic Return Label Generation: Enable customers to generate return labels effortlessly, ensuring smooth returns without added workload for staff.
Printerless Returns via QR Code: Enhance convenience with QR code returns, making it easier for customers to return items without needing a printer.
In-Store and Curbside Returns: Offer flexible return options that reduce emissions by routing customers to local stores.
Intelligent Dispositions: Automatically route returns to the nearest warehouses, recycling centers, or donation facilities, cutting down on transportation and emissions.
With WeSupply, you can make returns more sustainable and customer-friendly, helping to reduce waste and lower the environmental impact of your operations.
Even with efforts to reduce returns, some are inevitable. A well-executed returns process can transform a potential setback into an opportunity to build loyalty. Speed, simplicity, and cost-effectiveness are key. Offering pre-filled return forms, printable labels, and in-store return options makes the experience seamless and hassle-free.
Consumer expectations, especially among Gen Z and millennials, include quick refunds and transparent return tracking. Retailers who streamline the returns experience can meet these expectations and foster loyalty, increasing the likelihood of repeat purchases.
WeSupply’s Returns Management Software helps you create a positive, seamless returns experience that fosters customer satisfaction and loyalty. With features that enhance convenience and streamline the process, you can turn returns into a valuable touchpoint for building long-term relationships.
Branded Returns Portal: Provide a consistent, branded experience without sending customers to third-party sites.
Self-Service Returns: Empower customers to control their own return process, offering the frictionless experience they expect.
Flexible Returns Rules: Tailor return policies to different scenarios, making the process easier and more customer-friendly.
Autogenerated QR Code Labels: Simplify returns with scannable QR codes, eliminating the need for printed labels.
Returns Tracking: Allow customers to track their returns in real time, building transparency and trust.
Post-Purchase Notifications: Keep customers engaged with shipping updates and personalized offers via email and SMS.
Keep your customers engaged during the return experience
Book a quick call with our experts to see how WeSupply can help you engage your customers with relevant updates through the right channel, at the right time.
Integrations: Easily connect with hundreds of third-party tools for a cohesive customer experience.
Returns Analytics: Gain insights to reduce return rates by identifying trends, product issues, and serial returners.
With WeSupply, elevate your returns process and turn it into a powerful tool for driving customer loyalty and satisfaction. Book a demo today to see how we can enhance your returns experience!
Challenge
EVEREVE faced high return rates in eCommerce, especially during COVID-19, which overwhelmed their manual return processes, affected customer service, and lacked visibility into return data.
Solution – By integrating WeSupply’s technology, EVEREVE revamped their return processes with:
Automated Returns: Streamlined with Magento & custom API integrations (Zendesk, Celerant, Veeqo).
Proactive Management: Real-time order tracking and proactive customer notifications.
Self-Service Flexibility: Customers can choose exchanges, store credits, or refunds on their own.
Results
Cost Savings: Reduced customer service load and support tickets.
Improved Accuracy: Accountability and transparency across all return processes.
Enhanced Customer Experience: Self-service returns foster customer satisfaction and loyalty.
Returns abuse – such as “wardrobing” (returning worn items) and “bracketing” – remains a costly problem for retailers. Returns fraud costs companies millions, if not billions, annually and can increase prices for all customers.
The growth of shopping online has led to an increase in fraudulent activities, urging retailers to adopt advanced technologies to protect their revenue. To mitigate fraud, brands should set clear return policies and use technology to monitor suspicious behavior. AI can flag unusual patterns, allowing retailers to identify and address abuse before it becomes costly.
WeSupply empowers businesses to prevent return abuse and tackle the hidden costs of return fraud with effective tools and policies. By identifying and blocking fraudulent behavior, WeSupply helps maintain a secure and fair returns process, ensuring your revenue stays protected.
Blocklist fraudulent customers: Use blocklisting features to prevent repeat fraud by blacklisting specific email addresses or customer groups.
Ready to secure your returns? Check out our other Pre-built Return Policies to find more ways to optimize your return strategy!
As eCommerce continues to grow, so does the importance of a well-managed returns process. Returns don’t have to be a liability; with the right strategies, they can serve as a competitive advantage that drives customer loyalty, trust, and long-term growth. By combining technology, data insights, and customer-centric policies, retailers can not only reduce the financial impact of returns but also create positive experiences that differentiate their brands in a crowded market.
In 2024, the expensive truth about eCommerce returns is that they’re here to stay. But with the right tools and strategies, brands can turn returns from a pain point into a valuable asset, building stronger relationships with customers and setting the stage for sustained success.
WeSupply addresses the costly challenges of eCommerce returns in 2024 by streamlining and optimizing return processes to protect revenue and improve customer satisfaction. With automated returns processing, self-service portals, and smart analytics, WeSupply minimizes labor costs and enables data-driven decisions that reduce return rates. Flexible, customer-friendly policies—like Green Returns, customizable return windows, and fraud prevention tools—enhance transparency and trust, while sustainable logistics options help manage non-resellable items responsibly. WeSupply’s platform transforms returns from a financial burden into an opportunity for growth, efficiency, and loyalty.
WeSupply’s automated returns processing reduces labor costs by streamlining essential steps such as return initiation, shipping label generation, and real-time tracking. This automation enables efficient returns processing at scale, even during peak seasons, significantly lowering manual handling expenses.
Yes. With WeSupply’s self-service portals, customers can initiate returns, choose their return options (like exchanges or store credit), and track their returns without needing to contact support. This self-service approach reduces dependency on support staff, saving operational costs and creating a seamless, customer-friendly experience.
WeSupply provides robust fraud prevention tools, including Return Policy Enforcer and verification features that detect and deter abusive practices like wardrobing and serial returns. This protects your business from the financial drain of fraudulent returns, ensuring a fair process for legitimate customers.
Yes. WeSupply offers sustainable reverse logistics solutions, such as routing non-resellable items to recycling centers, donation facilities, or liquidation channels. This minimizes environmental impact and helps offset the financial loss associated with unsellable returns, aligning with eco-friendly initiatives.
Yes, WeSupply does have an official Shopify App. You can download and begin to integrate it with your Shopify store.
Yes, WeSupply has an official extension for Magento. The WeSupply x Magento integration allows for automating order tracking experiences, reducing customer inquiries, automating shipping email and SMS notifications, and providing a fully branded order tracking experience
Yes, WeSupply has an official BigCommerce App. You can integrate WeSupply with your BigCommerce store to improve your post-purchase customer experience.
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