E-commerce

How to deal with the increase in customer returns in e-commerce?

How to deal with the increase in customer returns in e-commerce?

September 17, 2026

Are you wondering how to cope with the increase in customer returns that is weighing on your online store?

The answer is simple: you need to act on two fronts at once, reducing logistical costs and preserving an impeccable return experience. It is a delicate balance, as overly strict policies drive buyers away, while overly easy returns eat into your margins.

So, how do you manage this growing pressure? On the agenda:

  • Why are online returns skyrocketing and what are the risks for you?

  • What is the environmental and financial impact of returns?

  • How are customer expectations transforming your return policy?

  • What reverse logistics solutions can help reduce costs?

  • How can Qstomy help you manage daily returns?

Let's get started.

Summary

Why are online returns exploding, and what are the risks for you?

The return rate for online purchases continues to climb, reaching an average of 15%, and even 30% for clothing. During the holiday season, this figure can rise up to 40%. By comparison, only 5 to 10% of purchases in physical stores are returned.

This increase is explained by consumer behavior, with shoppers ordering multiple sizes or variants of the same product to try them on at home. The risk for you, the merchant, is twofold: additional logistical costs and pressure on your margins. In 2017, returns cost US merchants $381 billion, and this figure was projected to reach $550 billion in 2020.

Faced with this reality, the temptation is great to tighten your return policy. But beware, this reflex can backfire by driving away your most loyal customers. A balanced approach is therefore essential to preserve your revenue.

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What is the environmental impact of returns on your business?

The impact of returns is not limited to your bottom line. The fashion and electronics sectors are under particular scrutiny for their ecological footprint. In the United States, about five billion pounds of returned merchandise end up in landfills each year, according to logistics optimization firm Optoro.

This waste is an image issue for your brand. Consumers are increasingly sensitive to sustainability and may judge you on how you manage unsold items and returns. A responsible return policy, with recycling or donations to charities, can become a differentiating selling point.

Reducing returns at the source is therefore a double win: you save money and you improve your brand image. It is a profitable long-term investment.

How are customer expectations transforming your return policy?

Consumers place free and easy returns at the heart of their purchasing decision. A 2018 Narvar study of 1,300 online shoppers reveals that 69% of them abandon a purchase if they have to pay for return shipping. Even worse, 67% are deterred by restocking fees.

The ease of returns is a powerful driver of customer loyalty: 96% of customers say they are willing to buy again from a merchant if the return was "easy" or "very easy." Furthermore, 40% of those surveyed find it simpler to return an item purchased online to a physical store than to send it back by mail.

Your return policy is not a cost center, it is a tool for conversion and retention. Making it too strict means risking that your customers will turn to the competition. A clear and generous policy is a strategic asset.

Why offer multiple return options to your customers?

Customers appreciate having a choice in how they return their purchases. The option of returning items to a physical store is particularly popular. The partnership between Amazon and Kohl’s, which allows Amazon returns to be dropped off at Kohl’s stores, has been highly successful. Customers often take the opportunity to make a purchase on-site, which also benefits the store.

For an e-commerce SME, offering multiple options can seem complex. However, even without a retail network, you can offer a variety of solutions: return by mail with a prepaid label, drop-off at a collection point, or even in-store return if you have a physical point of sale.

The goal is to reduce friction for the customer while controlling your costs. Each option must be designed to minimize your processing fees. Clear communication about these options is also crucial to avoid confusion.

How can reverse logistics reduce your return costs?

Reverse logistics is the set of operations to manage returned products. Well managed, it can significantly reduce your costs. The idea is not to process each return in isolation, but to group them together to optimize transport and processing.

Companies like Happy Returns offer physical drop-off points, called "Return Bars", where customers can drop off their packages without packaging and obtain an immediate refund. Returns are then grouped in regional hubs and redistributed in the most cost-effective way possible: restocking, liquidation, donation, or recycling.

This pooling of returns allows small merchants to benefit from economies of scale they could not achieve on their own. It is a pragmatic solution to ease your operational costs.

What are the solutions for reselling or liquidating your returned products?

Rather than throwing away returned products or putting them back in stock at a loss, many merchants choose to liquidate them. B-Stock offers online auction marketplaces dedicated to brands and retailers to sell their unsold stock in bulk to certified resellers. The two largest categories are home appliances and apparel.

The volume of merchandise sold on B-Stock doubled between 2017 and 2018, proving merchants' interest in this solution. Direct Liquidation is another player, which aggregates overstocks and returns for clients like Walmart, Amazon or Lowe’s.

These platforms do not take possession of your inventory, they simply connect sellers and buyers. This is an option to consider for recovering part of the value of your returns. This allows you to limit financial losses.

How to optimize your return processing with service providers?

Service providers like Happy Returns or Optoro offer comprehensive return processing services. Happy Returns offers a return-by-mail service, but also self-service kiosks in stores to avoid waiting in lines. They manage the aggregation, processing, and redistribution of returns.

Optoro, for its part, provides a return optimization software platform that helps retailers reduce their processing costs and increase the recovery value of returned items. Retailers like Best Buy, Staples, or Target use their services.

Outsourcing all or part of your reverse logistics can save you valuable time and allow you to focus on your core business: selling. It is a strategic decision that can improve your overall efficiency.

How to analyze return reasons to reduce returns at the source?

The best way to manage returns is to reduce their number in the first place. To do this, you need to understand why your customers are returning your products. Is it a size, color, or quality issue, or simply an ordering mistake?

By analyzing the reasons for returns, you can identify trends and correct course. For example, if returns are due to sizing errors, you can improve your size guides or add more accurate photos. If it is a quality issue, you need to contact your supplier.

This analysis is a profitable investment: every avoided return represents saved logistics costs and preserved margin. It also allows you to improve customer satisfaction by preventing unpleasant surprises. A proactive approach is always more effective.

How can a chatbot reduce e-commerce returns?

An AI chatbot can play a key role in reducing returns. By guiding your customers before purchase, it can help them choose the right size, understand a product's features, or verify compatibility. For example, an interactive size guide integrated into a chatbot can significantly reduce returns in fashion.

The chatbot can also answer questions about your return policy before purchase, which avoids misunderstandings and returns related to a lack of comprehension. Finally, it can guide the customer to the right product from the start, thanks to personalized recommendations.

This is a proactive approach: instead of suffering returns, you act beforehand to avoid them. This improves the customer experience and reduces your workload.

How to handle customer questions about returns frictionlessly?

Questions about returns are among the most frequent in e-commerce. Your customers want to know how to return an item, how much time they have, and when they will be refunded. A quick and clear response is essential for their satisfaction.

A chatbot trained on your Shopify data can instantly answer these questions, 24/7. It can explain your return policy, generate a return label, or outline the procedure to follow. This reduces the load on your customer support and improves the user experience.

The goal is to make the return process as smooth as possible, so that the customer keeps a positive image of your brand, even when they have to return an item. Responsive assistance is a guarantee of trust.

How does Qstomy help manage the increase in returns?

Qstomy, the Shopify AI agent, helps you manage the increase in returns by automating customer support and guiding your shoppers. Thanks to its parcel tracking and account management features, it answers questions about the status of an order or a return, without human intervention.

Qstomy can also help you reduce returns upfront, by recommending the right products and making relevant cross-sales. By guiding the customer to the most suitable product, it decreases the risk of disappointment and therefore of return.

Finally, Qstomy integrates with your return policy to answer frequently asked questions and reassure your customers. It is a comprehensive tool to improve conversion, build loyalty, and lighten your workload. It supports you on a daily basis.

What checklist should you adopt to cope with the increase in returns?

Checklist for mastering your returns

  • Analyze return reasons to identify root causes.

  • Improve your product pages and size guides to prevent errors.

  • Offer multiple easy return options for your customers.

  • Optimize reverse logistics by consolidating or outsourcing.

  • Automate customer support with a chatbot to answer questions.

In brief

The increase in returns is a major challenge, but not an inevitability. By analyzing the causes, optimizing your logistics, and using the right tools, you can reduce your costs while keeping customers satisfied. Proactive management is the key to success.

FAQ

Should returns be made paid to reduce costs? No, 69% of customers abandon their purchase if returns are not free. It is better to optimize your logistics.

How to reduce returns without penalizing customers? By improving your product pages, offering an accurate size guide, and using a chatbot to guide the purchase.

To go further: How to handle customer questions about printer-free returns - Qstomy, Training an e-commerce chatbot with Shopify: using the right data without creating wrong answers - Qstomy, AI Chatbot for size guides: reducing returns in fashion e-commerce - Qstomy, Analyzing product return reasons to reduce returns at the source - Qstomy, E-commerce support policy: writing clear rules for customers and agents - Qstomy, Customer support for orders with a free gift offered - Qstomy, How to handle customer questions on subscriptions with a free trial - Qstomy.

Enzo

September 17, 2026

Convert over 2,000 customers on average per month with Qstomy.

The world’s 1st Shopify AI dedicated to customer conversion

Empowering 200+ e-commerce merchants

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