Return Epidemic in E-commerce - How to Protect Your Store

Table of contents:

• Returns like an epidemic
• Shocking data: the scale of returns globally and in Poland
• Industries most affected (and the less obvious ones)
• Why do customers return? - New consumer phenomena
• Returns – you can't avoid them, but you can control them
• Prevention – reducing returns at the source
• Harm reduction – streamlining and cheaper handling of returns
• Prevention – counteracting abuse and uncontrolled returns
• AI/ML tools – return prediction as support (for bigger players)
• Best practices and market examples
• Conclusion: From diagnosis to action

Let’s imagine product returns as a dangerous epidemic plaguing online stores. The scale of the problem is global and staggering – in the United States alone, the total value of returned goods in 2022 exceeded $600 billion (8.6% of all retail sales). In e-commerce, the return rate is often several times higher than in brick-and-mortar stores – on average, about 18% of online purchases are returned (compared to ~8% offline). This means that every fifth item bought online is returned to the seller!

Polish e-commerce is also infected with this disease. Estimates show that on average about 8% of all online orders in Poland are returned by customers. In some industries, these rates are much higher. The consequences? Shipping, handling, storage, and loss of product value hit store margins. It’s a “sick” situation that requires diagnosis and proper “preventive therapy.”

In the following part of the article, we will look at the symptoms of the return epidemic and strategies that will help heal your online store.

The problem of returns is huge on a global and national scale. For example, in 2021, as much as 21.7% of online purchases in the USA were returned. Despite some improvement (19.3% in 2022), almost every fifth package was still returned to the store. Globally, the average return rate for e-commerce remains around 10–18%, but in peak periods (e.g. holidays) it can reach up to 30%. For comparison, in brick-and-mortar stores, only about 8% of products are returned – online, this rate is more than twice as high.

In Poland, the scale of the phenomenon is also growing. According to the latest analyses, about 8.2% of all online orders in Polish B2C e-commerce end up being returned. If you look at the fashion sector (clothing, footwear), this rate is even higher – an estimated 15–16% of purchased clothes and shoes in Poland are returned to the seller. This means that every sixth pair of shoes or shirt bought online is sent back. Such high rates in fashion drive up the overall level of returns – for comparison, in other e-commerce categories in the EU, the return rate usually hovers below 10%.

Not all industries suffer from the return epidemic equally. The most “sick” is fashion – clothing and footwear. This is where return rates are the highest: globally about 17–30%, and in extreme cases even up to 50% for online clothing purchases. In Poland and Europe, fashion also dominates return statistics: ~15% in Poland, ~16% in the EU.

Why fashion? Customers often buy clothes without trying them on, hence more mistakes with size or style. What’s more, as much as 70% of returns in the fashion industry are due to size or cut mismatch. This is a key problem for this sector.

Right behind fashion are footwear (part of fashion, also a high return rate) and electronics (RTV/household appliances). Data shows that in electronics, the return rate can reach about 20–27%. The reasons vary: from faulty or damaged devices to unmet expectations regarding functions. Consumers return equipment that “does not fulfill the promises” from the description or turned out to be less intuitive to use than they assumed.

It’s worth paying attention to less obvious industries. There are segments where returns are practically non-existent or marginal:

• Food and groceries – here returns are rare (on average below 1%), because food is generally not returned (unless it is spoiled).
• Cosmetics and household chemicals – also a very low rate (~1–2%), mainly for hygienic reasons (an opened cosmetic often cannot be returned).
• Children’s products, baby items – returns happen, but less often (a few percent), because these are often well-thought-out purchases.
• Automotive (e.g. car accessories) – here’s a surprise: overall returns are moderate, but in some countries can reach up to 30%. This shows that even the online automotive sector is not completely immune – e.g. if a part does not fit the customer’s car model.

In summary, the industries most affected by the return epidemic are fashion and electronics, while FMCG, beauty, or food have rather collective immunity (very low return rates). However, every store – regardless of industry – should know its own “return temperature” and compare it with these benchmarks.

The reasons for returns are often classic (wrong size, damaged goods), but new consumer trends are also growing, fueling the wave of returns:

• Bracketing – this is when customers order multiple versions of the same product (e.g. several sizes of the same dress), assuming in advance that they will keep one item and return the rest. This is an attempt to bypass the lack of an online fitting room – the customer buys extra to “try on” different options at home. Bracketing, however, means multiple shipments and returns for the seller, increasing logistics costs and capital frozen in returned goods.
• Wardrobing – buying a product (usually clothing) with the intention of one-time use and return. The customer, colloquially speaking, treats the store like a rental – e.g. buys an expensive outfit for one event, then returns it. For the e-seller, this is a nightmare: such goods often come back worn, without tags, sometimes damaged or dirty, and not suitable for resale. Wardrobing is an outright dishonest practice – a form of return policy abuse.
• Other dishonest returns – besides wardrobing, there are more sophisticated scams. For example, some customers return a different item in the packaging (pretending it’s the original), return goods after the deadline pretending it’s a complaint, or deliberately damage the product and demand a full refund. Such return frauds cost the industry billions – it is estimated that “wear-and-return” (wardrobing) alone accounts for about 70% of all fraudulent returns, generating losses of $23 billion a year for the industry (360 ID Tag).

It’s worth noting that increasingly liberal return policies (free returns, long deadlines) have somewhat encouraged such behaviors. Customers know they can return almost anything without consequences. The COVID-19 pandemic also strengthened these trends – mass online shopping and the inability to see the product “live” increased both bracketing and wardrobing. The result? Sellers have to deal not only with honest returns due to mistakes, but also with a growing wave of intentional returns resulting from new shopping habits.

Returns are, were, and will be – it’s an inseparable part of commerce, especially online. You can’t completely eliminate them, if only because the law (e.g. EU consumer law) guarantees customers the right to withdraw from a contract when shopping online. Moreover, the ease of return has become a competitive element – stores compete in liberal policies because they know customers value risk-free shopping. The goal is not zero returns, because that’s unrealistic and would probably scare customers away.

The goal is rather to reduce the scale of returns where possible and to optimize return handling to minimize their cost and negative impact. It’s like a chronic disease – we have to learn to live with it and treat it so that the patient (the store) can function normally. Later in the article, we will discuss a three-step strategy for dealing with returns: from prevention (addressing the causes of returns), through harm reduction (efficient handling to minimize costs), to abuse prevention (monitoring and counteracting the most harmful behaviors). Such a comprehensive strategy will keep returns under control – not eliminate them, but reduce and make them less painful.

The best medicine is prevention. In the context of returns, prevention means actions that, already at the stage of product presentation and sale, reduce the risk that the customer will be dissatisfied and return the goods. Here are the key elements of prevention:

Reliable, rich product information

The more precisely the customer knows what they are buying, the less likely they are to be disappointed. Provide high-quality photos (showing the product from different angles, in different uses, with the ability to zoom in on details). It’s also worth adding a short video showing the product in use. The description must be detailed and truthful – including dimensions, material, functions, set contents, etc. This is not only a marketing issue, but also a way to prevent returns – about 16% of returns result from the product in reality not matching the description or photos from the site (Radial.com). Avoid embellishing reality – it’s better to promise less and positively surprise than to disappoint the customer’s expectations.

Accurate size and fit charts

In the clothing and footwear industries, clear size charts (including measurements in cm, instructions on how to measure, size conversions) are an absolute foundation of prevention. Consider interactive tools to help choose the size – e.g. a simple quiz about the customer’s measurements or a fit finder. The wrong size is number 1 on the list of reasons for returns (64% of Polish e-consumers have returned goods due to the wrong size or measurements (Bankier.pl)). Every centimeter and every piece of information counts – whether the material is elastic, what the insole length is, etc. The goal is to bring online shopping closer to the fitting experience – the better the fit before purchase, the fewer returns.

Customer reviews and opinions

Including a section with buyer reviews on product pages also works preventively. Authentic customer reviews can warn future buyers about potential disappointments (“the color is darker in reality”, “the sizing runs small – take a bigger size”, etc.). Such information from other users builds realistic expectations. What’s more, a consumer reading reviews feels more confident about the purchase – and greater confidence means a lower probability of return (studies show that additional confidence in choice thanks to information reduces the tendency to return - Byteplus.com). So it’s worth encouraging customers to leave reviews and answering their questions on the product page.

3D/AR visualizations (augmented reality)

Modern technologies can help customers better imagine the product, which reduces the risk of mistakes. If it’s realistic in your industry – consider implementing 3D product visualizations or even AR allowing the customer to “place” a virtual product in their home (e.g. a sofa in the room, a TV on the wall, glasses on the face via webcam). It sounds futuristic, but large stores are already implementing such solutions. For example, a well-known furniture store saw a 20% drop in returns thanks to AR – customers could check in advance if the sofa would actually fit in their interior (Byteplus.com). Zalando introduced a virtual fitting room with body measurement from photos in the DACH region, which reduced returns due to wrong size by 10% (ChannelX.world). Of course, implementing AR/3D must be cost-effective – it’s rather an option for bigger players – but even simple solutions (e.g. a photo of the product on a person of known height, online paint color simulation on a wall) can help reduce shopping mistakes.

Building the right expectations

All the above actions boil down to one thing: transparent communication, so the customer knows exactly what they are buying. Prevention is also about honest presentation of product features (e.g. being upfront that a smartphone has no headphone jack, instead of hiding this fact in fine print). It’s also worth informing about real delivery times – sometimes a customer returns a product not because it’s bad, but because they bought elsewhere as the shipment was delayed. Good prevention also means educating the customer before purchase – e.g. an FAQ section with answers to typical doubts, guides (“how to choose a bra size”), model comparisons. The less uncertainty before clicking “Buy”, the lower the risk of return.

Even with the best prevention, some orders will come back to the store. Harm reduction is a strategy to handle these inevitable returns as efficiently, cheaply, and with as little negative impact on the business and customer as possible. Here are some practical directions:

Automation and streamlining of the return process

At a larger scale, it’s worth investing in return management systems (Return Merchandise Authorization – RMA). They allow the customer, for example, to report a return online, download a label or generate a return code, and the store can automatically track the status of such a package. Modern solutions (like the Polish tool RetJet) can automate and simplify the return process, guiding the customer step by step (Wnikamy.pl). This saves time for customer service and is convenient for the buyer. Automation also reduces the risk of errors (e.g. lost requests) and allows goods to be returned to sale faster.

Label-less & box-free returns

This is a trend originating from Western markets, but it’s also gaining popularity in Poland. The idea is to make returning goods as easy as possible: the customer doesn’t have to print an address label or even have the original packaging. For example, InPost already offers the option of returning via parcel locker without a label – the customer generates a return code, enters it at the machine, and that’s it. Amazon globally cooperates with points where you just hand over the goods and show a QR code. The less “friction” in the return process, the lower the handling cost (the customer sends it themselves, less burden on the helpline with “how to return” questions). For the customer, it’s also a benefit – they’re not discouraged by a complicated procedure. Importantly, in Poland, parcel lockers are the most popular form of return – 46% of consumers prefer to return a package this way (Widoczni.com). It’s worth using this infrastructure – returns to parcel lockers are usually cheaper than ordering a courier pickup.

Cheaper return logistics

Every returned package generates a shipping cost in the other direction. How to reduce it? Negotiate rates with couriers for return shipments (many companies offer lower prices for returns under business contracts). Consider implementing pickup points: e.g. the customer can return the product for free in your brick-and-mortar store (if you run omnichannel) or at a partner point. Some chains (e.g. Zara) have even abolished free courier returns and encourage free returns in the physical store or pickup point – in Poland, Zara introduced a fee of 9.90 PLN for courier returns, leaving a free option for returns in the store or parcel locker (Bankier.pl). This is a radical step, but it signals rising courier return costs and the search for savings. For smaller stores, a better strategy may be, for example, joining parcel networks as a return point – the customer sends it cheaper, and you receive returns in bulk.

Efficient control and reprocessing of returns

Every returned product must be quickly checked, repackaged, and a decision made on what to do next. The longer it stays in the “return zone”, the longer it doesn’t earn. It’s worth optimizing this process: designate a dedicated team or days for handling returns, train employees on how to quickly assess the condition of the product. Reducing repackaging costs also means asking customers to return goods in their original packaging and condition – then it can almost immediately be accepted into the warehouse. A good idea is to resell returns as discounted products (the so-called “outlet” or “open box” category) – it’s better to recover part of the value than to keep an unsellable return. Some companies even decide to outsource returns (handing over return logistics to specialized companies), which can be cheaper per unit at a large scale.

Detecting problematic returns (incomplete, damaged)

Harm reduction also means protecting yourself from losses on the return of a product that is not in full value. Introduce procedures for checking returns: e.g. in electronics – test the device, check if it works and if the serial number matches; in clothing – check tags, signs of wear. If the customer returned goods with a loss of value (e.g. missing parts, damage, wear), you have the right to give a partial refund corresponding to the loss of value. It’s important to enforce this consistently – this is also part of prevention (the customer will think twice before returning a used item if they get a deduction). It’s also worth recording such cases in the system – e.g. marking the customer’s account if they have already returned incomplete goods. More on this in the Prevention section.

In summary, streamlining the return process is a way to “disinfect” the effects of the epidemic. A fast, automated, and optimized process makes returns less financially burdensome. It’s a bit like using medicine to relieve symptoms – a return is still a loss, but well-managed, it hurts the store less (and the customer too – which affects loyalty).

In medicine, prevention means actions that prevent the recurrence of disease. In our context, it’s about actively monitoring and limiting the most harmful behaviors related to returns before they become a problem. Here are the elements of such prevention:

Monitoring “patient zero”

Tracking the return rate per customer: It’s worth implementing internal metrics that show which customers habitually return products. If, for example, you see that a customer returns 80% of purchases, that’s a red flag. Such a customer may be bracketing on a large scale or even abusing the policy (wardrobing). By monitoring order and return history at the user level, you can detect abuse early. Big platforms already do this – for example, Amazon is known for being able to block a buyer’s account who returns too often. Of course, in a small store, every sale is valuable, so it’s not about banning customers right away. However, with data, you can take soft actions: contact such a customer, ask about the reasons for returns, offer help in choosing products – sometimes an honest conversation improves the situation.

Return policy with restrictions for abusers

Although the law requires us to accept returns within 14 days, we have some leeway in the return policy beyond this standard. For example, you can shorten the return period for certain customers (e.g. those who habitually return – although this is technically difficult to enforce) or introduce a handling fee for subsequent returns. An example from the market: the Vinted platform charges a service fee to buyers, which includes transaction protection and possible returns – this shifts part of the cost to the user. In your own store model, such differentiation among customers is delicate (so as not to discourage them), but you can, for example, exclude certain promotions for people with a high return rate. Some stores reserve the right in their regulations to refuse to sell to a customer who grossly abuses returns – which is legally permissible. As a last resort, you can part ways with a toxic customer.

Detecting and marking goods for wardrobing

If you struggle with cases of returned used clothing, consider introducing security measures such as return seals or unique tags. These are special tags attached to clothing that do not interfere with trying on but are visible when worn – the customer will not wear the clothing publicly without removing them, and after removal, they cannot return it (return accepted only with an intact seal). Such solutions are already used by some luxury brands and prove effective in deterring wardrobers. Alternatively, you can use discreet markings (e.g. holograms, QR codes) that later allow you to check the authenticity of the returned goods – this is a fight against item swapping on returns.

Return data analysis – learn from history

Prevention also means drawing conclusions from past returns. Analyze which products are most often returned and why. Maybe a certain model of jeans has a notoriously bad cut – it’s worth withdrawing it or improving the description (“slim fit, narrow in the thighs”). Maybe a supplier has a high rate of faulty devices – you need to improve quality control or change the supplier. Identify patterns: e.g. customers from a certain region return more often – is it a matter of a worse courier in that region (damage in transport)? Or maybe it’s a marketing issue (you attract the wrong group, who return)? Data will help you make preventive business decisions – what to sell, how to describe, to whom to sell – to reduce future returns.

Customer service alerts

It’s worth implementing an internal alert system: e.g. when a customer with a history of many returns places a new, high-value order, customer service can receive a notification. Maybe it’s worth calling such a customer before shipping and making sure everything is clear (ask about size, color, preferences). Such proactive contact can sometimes prevent a return (because, for example, the customer realizes they ordered two similar things and planned to return one – a conversation may prompt them to change the order in advance). This is, of course, extra effort, but with expensive products, it can pay off. Also in after-sales service – if we know the customer tends to be dissatisfied, it’s worth responding faster to signals (e.g. a question about the possibility of return – maybe you can offer another form of compensation to keep the sale).

Prevention is like building herd immunity – it protects your store from the worst effects of abuse. It works on the principle: better to prevent than to cure. Thanks to it, you stop the few percent of customers who generate the lion’s share of return costs from harming your business.

It’s worth mentioning the latest technologies – artificial intelligence and machine learning, which are entering the area of return management. For most small and medium-sized e-shops, this is still a thing of the future, but the biggest players are already using it, so it’s worth knowing what’s coming:

AI in the service of reducing returns – Algorithms learning from purchase data can predict which orders are likely to be returned. They take into account hundreds of factors: customer history, product type, even review content or behavior on the site. Such prediction allows, for example, to catch potential problems in advance – if the system assesses that order X has a 90% risk of return, you can, for example, proactively contact the customer or add something to the package to encourage keeping the product. Large retail giants also use AI for size selection – analyzing millions of returns allows them to suggest to a new customer that, for example, a certain shoe model “runs small” and the suggested size is 42 instead of 41. Insider Intelligence reports that many clothing stores invest in AI for size matching to eliminate bracketing (buying many sizes) (eMarketer.com).

Learning systems can also detect unusual patterns indicating fraud – e.g. a customer who often returns just before the deadline or always different products than they bought (a sign of possible swapping). AI can support fraud detection departments in flagging such cases for additional verification. It should be emphasized: implementing AI/ML requires a lot of data and resources, so it makes sense for large-scale operations. In smaller stores, most effects can be achieved with classic methods described earlier. Nevertheless, it’s worth watching the market – AI tools are becoming more and more available (e.g. as SaaS services) and maybe in the future, even a medium-sized e-shop will use a return prediction model. For now, let’s treat them as an interesting addition, not the core of the strategy.

Finally, let’s look at some examples, case studies, and ideas implemented by companies that can serve as inspiration in the fight against the “return plague”:

Zalando – fighting returns through innovation:

Zalando, a fashion giant, has historically struggled with a mass of returns (even up to ~50% in the early days in some markets). To counter this, the company invested in size-matching technologies. In 2023, it introduced the Size Advisor tool based on customer body photos – the result was 10% fewer returns due to wrong size for products covered by this function (ChannelX.world). Zalando is also experimenting with 3D virtual avatars and working with brands to standardize sizing. In addition, the company began educating customers about the environmental impact of returns, wanting to change their approach (“order several, return the rest” stops being cool when you think about the carbon footprint of extra shipments).

Zara – end of free returns:

In 2022, the Zara chain surprised the market by announcing that it was eliminating the option of free online returns in several European countries. Now, customers sending a package by mail or courier have to pay a small fee (e.g. in PL 9.90 PLN, in the UK ~1.95 GBP) (Bankier.pl). The return remains free, but only in the physical store. This move – risky from the customer experience point of view – was dictated by rising return handling costs. Other brands (Next, Uniqlo) have taken a similar approach. This shows that even market leaders are looking for ways to discipline customers. In the short term, Zara did not feel a loss of customers, but it reduced the volume of returns sent by mail. This is a case worth watching – will Polish consumers accept the model “you pay for the convenience of returning to a parcel locker, or return for free in the store”?

Amazon – we ban repeat offenders:

Amazon’s return policy seems very liberal (30 days to return, often free). However, the e-commerce giant keeps an eye on abuse with advanced algorithms. There have been high-profile cases of customers whose accounts were closed by Amazon due to “too many returns.” The company officially comments that it does this rarely, only when someone clearly abuses the system, but the very fact that it monitors the return rate per customer and draws consequences acts as a deterrent to others. Amazon has also introduced “frequently returned” type markings on some products – warning buyers that a given item has a history of not meeting expectations. This is an interesting approach: full transparency with customers, which can discourage thoughtless purchases (because no one wants to buy a dud and then deal with a return).

Other good practices:

More and more stores are testing small improvements to reduce returns. For example, extending the return period can paradoxically reduce the number of returns – the customer doesn’t feel the pressure of 14 days, puts off the decision and… often forgets about it or gets used to the product. Some stores offer a partial refund in exchange for keeping the product (e.g. “we’ll refund you 20% if you keep this item”) – this works for cheaper things where return logistics are not profitable. Others invest in better packaging – solid packaging reduces damage in transport, and product damage is the cause of ~13% of returns (Radial.com). There are also loyalty programs rewarding no returns (e.g. a discount on the next purchase for customers who didn’t return anything from the previous order). All these initiatives have one thing in common – a creative approach to the problem of returns, looking for ways to keep the sale or at least reduce the cost of reversing it.

The “return epidemic” is a real challenge for Polish e-shops, but – as we have shown – there are effective vaccines and therapies. The key is awareness of the problem (a metaphorical diagnosis of the disease) and multi-level action: from preventing causes, through efficient “isolation” and treatment of symptoms, to active defense against abuse. All this is set in the realities of the local market and possible to implement without astronomical budgets.

For e-commerce directors and managers, this means the need to look at returns not as an unpleasant service task, but as a strategic area to manage. Optimizing returns can bring tangible savings and advantages – lower losses, more loyal customers (happy with hassle-free returns), better customer purchasing decisions, and a more environmentally friendly supply chain (fewer unnecessary shipments).

In conclusion, it’s worth emphasizing: there is no single miracle cure for returns. It’s a combination of many actions – from technology to company policy and customer education. However, by gradually implementing the described strategies, you will arm your store with resistance to this epidemic. Returns will become a controlled element of business, not a devastating disease. And that’s exactly what we wish every e-shop in Poland – healthy, sustainable sales growth with returns limited to a reasonable minimum. Good luck!