How to Solve High Return Rates in E-Commerce

Returns have been one of the trickiest challenges I’ve seen in e-commerce.

When a customer orders something that doesn’t fit right or isn’t what they expected, it goes back.

It’s frustrating for everyone—businesses lose money, customers feel let down, and the environment pays the price with all the extra packaging and shipping.

The good news is, like cart abandonment (you can read my earlier blog here), this problem can be solved.

With a few practical strategies and examples, we can reduce returns and create a better shopping experience for everyone.

Why Are Returns So High?

Let’s look at some of the main reasons why customers return products:

Sizing and Fit Issues

This is a big problem for clothes and shoes. Since customers can’t try items on, they often order multiple sizes and return the ones that don’t fit

What We Can Do:

• Offer virtual try-on tools or AI-based size recommendations.
• Add detailed size charts and customer reviews like “runs small” or “true to size.”

Example:

Myntra, one of India’s top fashion platforms, uses a ‘Size Finder’ tool to help customers pick the right fit. It analyzes body measurements, brand sizing, and customer feedback to guide shoppers to the best size, making returns due to fit issues less likely.

Inaccurate Product Descriptions

When products don’t match what’s shown online, customers feel disappointed and return them.

What We Can Do:

• Add crisp, high-quality images and videos that show the product in detail.
• Be specific about materials, dimensions, and other key details.
• Encourage customers to leave honest reviews and answer common questions to help others make informed decisions.

Example:

Amazon sets a great example when it comes to managing expectations. They use sharp, clear images from different angles, detailed product descriptions, and even videos to give customers a real sense of the product. What works even better is their Q&A section, where shoppers can clarify doubts before clicking 'Buy Now.'

Impulse Buying

Flash sales and discounts often tempt customers to buy things they don’t really need, which leads to returns.

What We Can Do:

• Add a “Save for Later” or wish list feature.
• Use messaging like “Think before you buy” to encourage mindful shopping.
• Offer perks like free shipping for larger, more deliberate purchases.

Example:

Nykaa’s “Save for Later” feature helps customers think through their purchase before completing it. This reduces regret buys and, in turn, returns.

Haul Culture

Haul culture, popularized by social media influencers, is a trend where people buy a lot of items to showcase in videos or photos and return most of them afterward.

What We Can Do:

• Limit returns for frequent returners.
• Reward customers who have lower return rates with loyalty points or discounts.
• Educate customers about the environmental impact of frequent returns through campaigns and emails.

Example:

ASOS has set limits on how many items a customer can return within a specific timeframe, especially for accounts with frequent returns.

Easy Return Policies

Flexible return policies do a great job of building customer trust, but they sometimes make it too easy for shoppers to buy without thinking twice.

What We Can Do:

• Let customers return products for free if they want an exchange or store credit.For example, if someone orders a shirt that doesn’t fit, they can easily return it for the right size without any extra charges.This way, customers are happy, and refund requests go down.
• Add a small fee for refunds to discourage unnecessary returns.
• Reduce the return window a little to help customers decide faster and shop more thoughtfully.

Example:

Zara has a smart return policy. They charge a small fee for delivery returns. In-store returns, however, are free. This helps them save costs and reduces unnecessary returns.

Why Do Returns Matter?

Returns don’t just cost money—they affect everything:

• Shipping Costs: Paying for delivery and reverse logistics adds up.
• Unsellable Products: Many returned items can’t be resold or need heavy discounts.
• Environmental Impact: Returns increase waste and carbon emissions.

For instance, in 2022, U.S. retailers lost over $800 billion in returns, which shows how big this problem is worldwide.

Connecting It to Cart Abandonment

Returns and cart abandonment are two sides of the same coin. Both happen when customers don’t feel confident about their purchase. Just like cart abandonment can be reduced with better communication and checkout processes (read my blog here), returns can also be managed by guiding customers to make better decisions before buying.

Here’s My Take

Returns are part of online shopping, but they don’t have to be overwhelming. By using ideas like better product descriptions, virtual try-ons, and smarter policies, we can reduce returns while keeping customers happy.

It’s not about making returns harder—it’s about helping customers shop smarter. Small changes can make a big difference for businesses, customers, and even the planet.

What do you think about these ideas?

I’d love to hear your thoughts or any strategies that have worked for you—drop them in the comments below!