E-commerce
October 1, 2026
Are you wondering how the pandemic has disrupted retailers' return policies?
Faced with lockdowns and logistical disruptions, merchants massively extended their return windows, going up to 60, 90, or 180 days, when they did not simply suspend returns to limit health risks. These adjustments, although necessary, have direct consequences on the cash flow and profitability of online stores.
The real trap? A wave of delayed returns flooding in after reopening, with products that have lost their value. Understanding these mechanisms helps you anticipate and protect your margins.
So, how has the pandemic changed retailers' return policies? On the agenda:
Why were return windows extended during the pandemic?
Which returns were suspended or cancelled by major retailers?
What is the impact of these changes on merchants' profitability?
How to manage the influx of returns after stores reopen?
What strategy should you adopt to protect your margins against returns?
Let's get started.
Summary
Why did retailers extend their return windows during the pandemic?
The pandemic forced retailers to rethink their return policies. With store closures and delivery service disruptions, it became impossible for customers to return their items within the usual timeframes. To avoid penalizing consumers, many brands chose to extend their return windows.
Amazon, for example, previously offered a 30-day return policy on most orders. During the pandemic, the e-commerce giant temporarily extended this period for items ordered between March 1 and April 30, 2020, allowing returns until May 31, 2020. This decision aimed to give customers more time, while acknowledging the logistical challenges of the moment.
This trend was not limited to major platforms. Retailers like Macy’s granted an additional 30 days for in-store purchases and 60 days for online orders. Even fashion brands like La Perla extended their policy to 60 days for orders placed after March 1, 2020. The objective was clear: adapt to the constraints of the time to retain an anxious customer base.
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Which returns have been temporarily suspended by retailers?
Beyond extending return windows, some retailers went as far as to suspend returns altogether, primarily for public health reasons. The idea was to limit the circulation of goods and reduce the risks of contamination, while helping to "flatten the curve" of the epidemic.
Walmart, for example, stopped accepting in-store returns for several product categories: food, cleaning products, beauty products, pharmacy, and apparel. Target also suspended in-store returns for a month, from March 26 to April 26, 2020, with extended restrictions in certain states like New Jersey.
Other retailers chose to make all sales final, thereby eliminating any possibility of return. These decisions, though radical, were perceived as necessary to protect employees and customers, while preventing the recirculation of potentially contaminated products in warehouses and stores.
What is the impact of extended returns on merchant profitability?
Return policy changes imposed by the pandemic come at a cost. Merchants now have to deal with an influx of delayed returns, which often arrive weeks or months after the initial purchase. This situation creates additional pressure on cash flow and inventory.
The first problem is volume. Returns suspended during the weeks of closure eventually arrive en masse once stores reopen. Target had in fact anticipated this by announcing that it would honor expired returns during the suspension period, three weeks after the end of it. The result: a peak in returns to manage, with logistics teams sometimes overwhelmed.
The second problem is the value of the returned products. An item purchased at full price at the start of the season may have lost a large part of its value by the time it is returned. Merchants must then absorb this depreciation, which weighs directly on their profit margins.
Why are returned products worth less after the pandemic?
The depreciation of returned products is a well-known phenomenon, but the pandemic has amplified it. Seasonal items, such as fashion clothing, are particularly affected. A spring coat purchased for $199 in March can see its price drop by 25% as early as mid-April, and then be on sale for $59 in July.
When the customer returns this item after stores reopen, the merchant must put it back on sale at a price well below the initial purchase price. The margin is then reduced, or even non-existent. For non-essential products, the problem is even more pronounced, as unsold inventory accumulates and must be cleared at rock-bottom prices.
This depreciation is a hidden cost that merchants must integrate into their business model. It is in addition to logistics, refurbishment, and repackaging costs, and can quickly turn a return into a net loss.
How to manage the influx of returns after stores reopen?
The reopening of stores marked the beginning of a challenging period for retailers: the massive influx of returns. To avoid being overwhelmed, merchants must anticipate and organize their logistics processes as soon as the restrictions end.
A first step is to prioritize the processing of returns by product category. Seasonal items must be processed first to maximize their chances of resale at a fair price. Non-seasonal products can be processed in a second phase, without urgent pressure.
It is also essential to communicate clearly with customers about processing times. A page dedicated to returns, with precise instructions and regular updates, reduces support inquiries and reassures consumers. Finally, plan for additional resources in staff or automation to absorb the peak volume.
What strategy should you adopt to protect your margins against returns?
Faced with increasing returns and product depreciation, merchants must rethink their strategy. A proactive approach is to adjust return policies based on product categories and seasons. For example, for seasonal items, a shorter return window can limit depreciation.
Another avenue is to offer alternatives to returns, such as a store credit or an exchange. This helps retain the value of the order and avoids reverse logistics costs. Customers are often satisfied with this option, especially if it is simple and quick to implement.
Finally, analyzing return data is crucial. By identifying the most returned products and the reasons for these returns, you can improve your product sheets, adjust your sizes, or revise your descriptions. A better match between the customer's expectation and the product received mechanically reduces the return rate.
How do return policies influence customer loyalty?
Return policies are a key factor in the purchasing decision, especially in e-commerce where the customer cannot touch the product. During the pandemic, consumers were particularly sensitive to return conditions, favoring merchants offering flexible policies.
An extended return period reduces the risk perceived by the buyer. They feel more confident ordering an item they cannot try on, knowing they can easily send it back if necessary. This confidence translates into an increased conversion rate and greater loyalty.
Conversely, a restrictive return policy can deter customers and push them toward more accommodating competitors. As an industry expert pointed out, if retailers do not adapt to current constraints, consumers will simply buy elsewhere. Flexibility is therefore an investment in the customer relationship.
What are the hidden costs of extended returns for e-retailers?
Extended returns are not just a simple extension of the deadline. They generate hidden costs that weigh on profitability. The first is the cost of reverse logistics: transport, reception, inspection, refurbishment, and repackaging. Each step has a price, often higher than that of the initial shipment.
The second cost is product depreciation. An item returned several weeks after purchase has lost value, especially if it is seasonal. The merchant must then resell it at a reduced price, or even put it on sale, which reduces their margin.
Finally, there is the opportunity cost. Resources mobilized to handle returns are not available for other tasks, such as customer service or marketing. During peak periods, this reallocation can slow down the entire business and impact growth.
How to communicate effectively about return policy changes?
Communication is essential when a return policy changes, especially in times of crisis. Customers must be informed quickly and clearly of new conditions, whether it is a deadline extension or a temporary suspension. A dedicated page, updated regularly, is the first step to take.
Emails and on-site notifications are also effective channels for reaching the customers concerned. A personalized message, explaining the reasons for the change and the new terms, reassures and avoids misunderstandings. Transparency is a guarantee of trust.
Finally, the customer service team must be trained to answer questions about returns. Agents must know the new rules and be able to explain any exceptions. A quick and precise response reduces frustration and avoids negative reviews on social networks.
What lessons can be learned from return management during the pandemic?
The pandemic was an accelerator of change for return policies. Merchants had to adapt quickly, often without preparation. This experience highlighted the importance of flexibility and preparedness in the face of the unexpected.
The first lesson is not to view returns as just a cost, but as a strategic element of the customer relationship. A well-thought-out return policy can become a competitive advantage, especially in sectors where perceived risk is high, such as fashion.
The second lesson is to prepare contingency plans. Merchants who had well-documented return processes and trained teams weathered the crisis better. Anticipating crisis scenarios, such as a suspension of returns or a massive influx, allows for faster and more effective reactions.
How does Qstomy help manage returns and protect your margins?
Qstomy, the Shopify AI agent, supports merchants in the daily management of their store, including returns. By centralizing order information and return policies, Qstomy helps reduce costs and improve the customer experience.
Concretely, Qstomy can:
Answer questions about returns: the agent explains the deadlines, conditions, and steps to follow, reducing the workload on customer support.
Offer alternatives to returns: in the event of a defective or non-compliant product, Qstomy suggests a store credit or an exchange, thereby preserving the value of the order.
Track returns in real time: the agent informs the customer of the status of their return, from drop-off at a collection point to the refund, reducing tracking requests.
By automating these tasks, Qstomy frees up time for your team and improves customer satisfaction, while protecting your margins.
What checklist should you adopt to optimize your return policy?
To finish, here is a practical checklist to optimize your return policy and protect your profitability.
In brief
Analyze your return data: identify the most returned products and the reasons.
Adapt your deadlines: adjust return windows according to product categories and seasons.
Offer alternatives: store credit, exchange or refund, depending on the context.
Communicate clearly: a dedicated page and notifications to inform your customers.
Automate tracking: use a tool like Qstomy to answer and track returns.
FAQ
Should I extend my return deadlines during times of crisis? Yes, if your customers are prevented from sending back their items. A temporary extension shows your understanding and builds loyalty.
How to avoid the depreciation of returned products? Process returns quickly, offer store credits or exchanges, and analyze the causes to reduce returns at the source.
What is the role of Qstomy in return management? Qstomy automates answers to questions, offers alternatives and tracks returns in real time, reducing costs and improving the customer experience.
To go further: What e-commerce strategy for a small brand under $100,000/month? - Qstomy, AI Chatbot for return fees: explaining who pays and in which cases - Qstomy, Can Wix be used for an e-commerce site? - Qstomy, Can an existing site be migrated to Shopify? - Qstomy, Can you sell Amazon products on Shopify? - Qstomy, E-commerce SEO strategy for category pages - Qstomy, How to integrate Shopify with Amazon for products, stock and reviews? - Qstomy.
Enzo
October 1, 2026
