How retailers can reduce their eCommerce return rates in 2026

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Personalize your customers returns journey with parcelLab to recover revenue.
eCommerce return rates are a thorn in most retailers’ sides. They are like a sauce stain that you think you can get out, but there always ends up being at least a bit you can’t get rid of.
According to the National Retail Federation, eCommerce return rates hovered around nearly 17% in 2024, meaning close to 17 out of every 100 products sold online were sent back. This rate spikes even higher during holiday seasons, averaging nearly 18% of sales returned.
If there were a magic button you could press to magically erase all returns, you’d do it. But unfortunately, there isn’t. So, let’s take a look at the next best thing. Here are some strategic ways you can lower these return rates, so your brand can cut costs, improve the customer experience, and boost long-term loyalty.
1. Improve product information before purchase
It may seem like common sense, but one of the most effective strategies to prevent returns is addressing customers’ expectations on the product detail page. Poor product descriptions, visuals, and inaccurate delivery dates are major drivers of returns.
Retailers should:
- Use high-quality images and videos from multiple angles.
- Show products being worn on models of different body types.
- Include detailed specifications, dimensions, materials, and care instructions.
- Leverage technology for a virtual try-on process or “visualize in room” capability.
- Evaluate the accuracy of their delivery promises.
This tactic helps customers form accurate expectations. On one hand, it can reduce the chance that what arrives at their door looks or feels different from what was expected. Then, on the other hand, an improved delivery promise can prevent returns from coming back by getting to the customer by when they need it, not after.
2. Educate with reviews, guides, and FAQs
Customer reviews and user-generated content are potent tools to reduce return rates. Nearly 93% of shoppers use reviews to inform their purchases, and when they see others’ experiences, especially photos, they can better anticipate what they’ll receive.
Retailers should aim to have the following on their product detail pages:
- Detailed reviews with fit and use case notes.
- FAQs about length, fit, material stretch, etc.
- Cross-sell suggestions for complementary products.
Additionally, sending customers guides and videos during the post-purchase process can help deter customers who may return due to not understanding how a product works or is built. These all help manage expectations and discourage impulse buys that often lead to returns.
3. Collect and leverage return data to reduce future returns
Every return tells a story. Retailers that capture why a product was returned gain important insights they can use to prevent future returns.
It is helpful to leverage a returns management solution that can segment return trends, so your brand can act on them. For example, flagged high return segments can trigger targeted content, fit guides, or personalized rules to prevent repeat returns.
Retailers should track trends like:
- Specific product SKUs with high return rates.
- Common reasons for returns (fit, defect, expectation mismatch).
- Customer segments most likely to return items.
Feeding these insights into product development, sizing strategies, and pre-purchase content helps closethe expectationgap that drives returns.
4. Tailor return policies without alienating customers
Return policies affect both purchase decisions and return behavior. However, they shouldn’t be so rigid that they drive customers away. Retailers constantly battle over whether they should charge for returns or make them free, and we are here to tell you, you don’t have to pick one way or the other.
Here are some ways to personalize the returns experience while also making sure you don’t hurt your bottom line:
- Offer free returns or instant refunds to loyal customers.
- Provide store credit incentives for new or first-time customers.
- Offer exchanges on items based on return reasons (e.g., didn’t like the color or wrong size)
- Use data to identify frequent returners and apply tailored rules (e.g., charge restocking fees for casual returns).
Returns reduction is a proactive strategy
Reducing eCommerce return rates isn’t about tightening policies and hoping for the best. It’s about anticipating customerneeds and aligning retail experiences accordingly. From better product visuals to tailored return experiences, every touchpoint presents an opportunity to cut return costs while retaining revenue and customer loyalty.
Forward-thinking retailers view returns as a competitive advantage, not just a cost center. The brands that learn to fully personalize the experience will create customers for life.



