How to reduce returns in eCommerce: Common reasons for returns and how to avoid them

Returns are rightfully a retailer’s worst nightmare. They’re a waste of inventory, shipping expenses, brand perception, and customer goodwill.

According to Invesp, at least 30% of all products purchased online are returned. That’s almost one third of your efforts wasted on sales that end up in a net negative for your company.

However, it doesn’t have to be that way. In this article, we’ll examine the most common reasons for returns and investigate what you can do to prevent returns from happening in the first place.

Fewer returns means happier customers, efficiently used inventory (a must in times of supply chain constraints and tariffs), and more revenue.

13 Most common reasons for returns

Most returns boil down to either insufficient expectation settings, education, customer fault, shipping issues, or fraud. Here’s how they play out.

Insufficient expectation setting

These returns happen when customers haven’t been educated enough on the product, and expectations haven’t been set properly.

• Wasn’t as expected: This happens when a customer gets an item and it wasn’t how they expected it to look, feel, or perform.
• Didn’t fit: This is when a customer gets an item that doesn’t fit. For example, clothing that’s too big or small, or furniture that doesn’t fit in the intended space.
• Difficult to use: This is when a customer returns an item because they found it too hard to use. This often stems from a lack of customer education prior to purchase, or post-purchase, teaching buyers how to properly use the item.
• Found it cheaper elsewhere: This is when a customer finds a better deal elsewhere and decides to purchase there, instead.

Shipping issues

These returns are caused by issues with inventory management, shipping, and fulfillment. They can usually be traced to a fault in your warehouse management system, 3PL, carrier, or other fulfillment partners.

• Arrived damaged: These returns happen when an item arrives broken or damaged, so the customer either initiates a straight return and refund, or a replacement.
• The wrong item arrived: This happens when a buyer gets the incorrect item. For example, they might have ordered a red pen and gotten a blue pen instead, or a pencil, or even a pair of shoes. These are more common in marketplace sales where a wide array of goods are stored in the same area and sold on the same platform.
• The item arrived too late: This happens when an item arrives later than promised, for example a gift arriving after the party, or an outfit arriving after it’s needed.

Customer faults

These returns happen due to customer error or misunderstanding. Some of this can also be addressed with education, but it’s more likely the customer’s prerogative rather than the brand’s issue to solve.

• Ordered the wrong item: This is when a customer accidentally orders the wrong item, and needs to return it since they didn’t want the item in the first place.
• Buyer’s remorse: This is when a buyer regrets their purchase due to the cost or perceived value, and returns it as a result.
• A change of mind: This is when a customer simply changes their mind and decides they no longer want the item.

Returns fraud

These types of returns are not the fault of the brand, but malicious intent from the buyer. This type of return can be prevented with smart analytics and a strong returns policy.

• Wardrobing: This is when someone purchases an item to wear and return as new. This is common for items like evening wear, where someone only expects to need the item once or on rare occasions.
• Bracketing: This is when someone purchases a variety of different sizes or colors of the same item, chooses the one they want, and then returns the rest. It can also be called “trying on” since it’s essentially an eCommerce shopper wanting to try on different options–just at a higher logistical expense to the brand.
• Price arbitrage: This is when someone purchases two similar, but differently priced items, and then returns the cheaper item under the guise of the more expensive one. Then, they keep the more expensive item for the cheaper price.

Now that you’re familiar with the many reasons customers return items, let’s dive into how to avoid returns from happening in the first place.

How to prevent returns before they happen

Prevention is better than a cure, which means avoiding returns in the first place is always going to be the best course of action. Below let’s look at each of the common reasons for returns above, and then go into some actionable solutions to reduce returns for that cause.

Wasn’t as expected → Take better product photos

Sometimes an item will arrive and a customer will think it feels different from what they expected. Perhaps it’s a different material, doesn’t look the same as the photos, or was smaller or larger than they thought it would be.

To combat this, photos are your friend. Take lifestyle product photos that show your item in scale (for example, against a background with a beach chair, which most viewers will know the basic size of).

Also, you can include more details around your product material composition in your listing, expand your product descriptions, and use photos to show a close up of the texture of your items.

Tip: Look at your reviews and the feedback customers give on why they are returning an item. This will give you an idea of where there’s misunderstanding, so you can correct it.

Didn’t fit → Share size guides

Items that get returned because they didn’t fit means the buyer didn’t have the right size guides when making a purchase. To resolve this, include measurements and dimensions prominently on your listing.

For example, you can have a sizing chart as one of the images in your product photos carousel. You could also include dimension guides in your product listing under highlights.

Consider also creating a sizing guide on your website, and adding the page somewhere in the menu or footer.

Difficult to use → Focus on customer education

If you’re getting a lot of returns from buyers saying your item was too difficult to use, proactively teach them how to use your product. This could be having an educational “how to” video on your product listing, sharing more documentation in automated order confirmation emails, and including a manual with your product. In your “order has been delivered” email, consider giving them a way to contact customer service with a single click within the email.

If you’ve done the above, and are still facing a high volume of returns, consider how you might redesign your product to be more user friendly.

Found it cheaper elsewhere → Caution against lower quality fakes

If your items are being returned due to them being listed cheaper elsewhere, it’s time for brand control. Educate your customers about the benefits of buying direct (think of all of those hotel websites that advertise you get the best rates on their website).

In addition, warn customers against purchasing fake versions of your items, or from unauthorized resellers who could be selling lower quality versions of them.

If your items truly are more affordable elsewhere, for example if you’re having a Prime Day deal or in-store-only Black Friday deal, consider offering to refund the difference rather than the entire item.

Arrived damaged → Examine your dunnage and packing process

When items arrive damaged, it’s important to understand when the damage took place. Was it a faulty product from the manufacturer, did it get damaged in transit due to handling, or was it packed with insufficient dunnage? The answer will guide your course of action.

You can use tools that scan the items on the packing station of a warehouse to see whether items were damaged (or incorrect, which we’ll go over further below) when they went into the box, or if they weren’t packed properly.

You can ask your customers to send a photo of how the product arrived, and upon return investigate the cause of the break.

You may need to contact your manufacturer for reimbursement, require an inspection process of goods arriving from your manufacturer, or file a claim with your carrier or fulfillment solution.

The wrong item arrived → Test your WMS/OMS and 3PL

If your customers are receiving the wrong items, that hurts your brand and wastes inventory. You may also want to allow them to keep the incorrect item and also ship them the item they paid for, to foster goodwill.

This issue is most likely a problem with your order management system or pick and pack process. You’ll want to go through your software and work with your 3PL or warehouse team to resolve why incorrect items are being shipped out.

The item arrived too late → Invest in a multi-carrier shipping strategy

When your item arrives late, it can be a case of shipping out late or the carrier service level being late. If it’s the former, tighten your warehouse procedures to ensure all orders placed before a certain time of day are also shipped out that same day.

You also want to build in a buffer for customer expectations. For example, if orders need to be placed by 3 p.m. for same-day shipping, consider telling customers orders must be placed by 12 p.m. for same-day shipping, instead.

If it’s a carrier issue, be sure to make a claim and escalate that the items arrived outside of the service level agreement. We also recommend a multi-carrier shipping strategy so you can use the most reliable carriers for every region and delivery speed.

Ordered the wrong item → Confirm at multiple stages before shipping

Sometimes a customer will get the wrong item and return it, but it wasn’t an operational mistake. Instead, it’s because they accidentally ordered the wrong thing.

This can happen when you have similar products, or versions. For example, a 2024 version and a 2025 version both on sale at the same time. Or, two of the same laptop but with different memory specs.

To circumvent this, make your checkout process crystal clear. Remind your shoppers what they’re purchasing in the cart (add all the details you can in the product title and description), during checkout, and in your confirmation email.

If you’re getting a lot of accidental orders, consider building in a pop-up before checkout that’s triggered when a commonly mistaken item is in the cart. The pop-up should ask if the customer is sure that’s what they want, and show the alternative that often gets mixed up.

Buyer’s remorse → Keep buyers excited

Some consumers make a purchase impulsively, then regret it after doing so. Buyers remorse is real, especially for expensive items that mean purchasing it would take away significant budget elsewhere.

There isn’t much you can do to prevent these returns, other than keeping your buyers excited for their purchase. For example, some products build a community around their items and send an invite to an exclusive Slack channel or Facebook group upon purchase.

A change of mind → Offer store credit

When consumers have a change of heart and decide they don’t want the item they ordered anymore, consider offering store credit rather than a refund. This helps preserve revenue while also encouraging a prospective buyer to test out other products you offer.

However, if you have customers who are adamant about getting a return, or you sell high-ticket items, you may want to consider offering the return anyway. Just be sure to have the item shipped back to prevent returns fraud where customers ask for returns knowing your brand allows them to keep the item.

Wardrobing → Adjust your returns policy

Wardrobing is a malicious consumer issue, which can be somewhat addressed with a strict returns policy.

For example, if you notice common signs of wardrobing (items being returned with indications of use) you might build it into your return policy that customers only have 3 days to return an item. Or you can adjust your packaging and require the item must be returned sealed and not tampered with.

For certain items, such as underwear and swimwear, you should also make it clear there will be no returns for any reason after purchase.

Bracketing → Provide sizing charts and virtual try-ons

Bracketing happens because a customer doesn’t know what exactly they want just yet, so create ways for them to virtually try on your items.

For example, if you sell glasses, offer an augmented reality experience where they can upload a photo and see the item on them.

Also, be sure to have a clear size chart so shoppers know exactly what sizes they need for shoes and apparel.

Price arbitrage → Use analytics to find worst offenders

Unfortunately this is another case of malicious intent, rather than something you can circumvent with good processes. If you notice a lower quality version of a particular SKU keeps being returned, you can consider disallowing returns for that certain item.

You can also require customers to sign up for an account with a valid email address and phone number before allowing returns. This will help you quickly identify the worst offenders, so you can block their future purchases and returns.

Wrapping up: Prevent returns before they happen to preserve your inventory and brand reputation

Returns are a pain for everyone involved, but they’re a cost of doing business. The key is to reduce your returns as much as possible to protect your revenue and brand reputation.

Follow our advice above and you’ll find happier customers, better utilized inventory, and more revenue rather than frustration.

Want help reducing your eCommerce returns? Chat with us about your shipping strategy.