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How to Reduce Product Return Rate on E-commerce Business Model?

How to Reduce Product Return Rate on E-commerce Business Model?

The impact of COVID-19 on businesses, particularly in the e-commerce sector, has been profound. With the surge in online shopping, businesses have had to adapt to new challenges, including an increase in product returns. In this article, we'll explore why customers return products and offer some strategies to address this issue effectively.

Why do Customers Return Products?

  • Customers Got The Wrong Item: When shopping online, customers sometimes receive the wrong item due to errors during the packing or shipping process. Nearly 23% of returns are attributed to this issue. It's essential to address this issue promptly and provide refunds when necessary, as customers have the right to keep the incorrect item without additional charges.
  • The Product Looks Different: Misleading product images or descriptions lead to nearly 22% of returns. Customers form expectations based on what they see and read online. If there's a significant gap between these expectations and the actual product, they will request a refund. To reduce this, provide accurate product descriptions, high-quality images, and, if possible, 3-D images or videos.
  • The Size Does Not Fit the Customer: In industries like clothing and footwear, incorrect sizing is a common reason for returns. To address this, provide detailed sizing charts, possibly with brand-specific information, and encourage customers to check reviews for sizing feedback.
  • Wardrobing and Fraud: Some customers engage in unethical practices, such as purchasing items for a special occasion and then returning them. This kind of fraud can be difficult to prevent entirely, but you can implement strategies like keeping track of repeat offenders and requesting pictures of the returned product to identify potential misuse.

Why is Minimizing Returns Important?

Reducing returns is vital for several reasons:

  • Cost: The return process can be costly, involving labor, shipping, warehousing, restocking, and potential repair expenses. It can eat into your budget significantly.
  • Customer Retention: Mishandling returns can result in losing loyal customers to competitors. A bad return experience can be a major turn-off.
  • Operational Disruption: Product returns can disrupt daily operations and even lead to price increases to compensate for losses, as reported by 20% of retailers.

Helpful Initiatives to Minimize Returns

  • Accurate Product Descriptions: Take the time to write detailed, accurate product descriptions and use high-quality images to bridge the gap between customer expectations and reality. 3-D images and videos can be especially helpful.
  • Sizing Charts: Provide clear, brand-specific sizing charts, considering customer feedback. This is crucial for industries where sizing is a frequent issue.
  • Dealing with Wardrobing: Implement strategies to identify and address wardrobing, such as placing tags on the outside of products, tracking repeat offenders, and requesting pictures of returned items.
  • Exchange Policy: Consider implementing an exchange policy rather than providing refunds. This can motivate customers to shop with you again and help with wardrobing.
  • Avoiding Mistakes: Make every effort to ensure that orders are fulfilled correctly and without errors.


In conclusion, The best way to reduce the rate of product returns is to follow the research-based tips and initiatives provided here or to consult with an experienced e-commerce development company in gurgaon. like Levycon India.. We benefit both the company and its customers and save both parties time and money.