In modern eCommerce, the sale doesn’t end at checkout, it ends when the return window closes.

Returns are now one of the most expensive and influential parts of the post-purchase experience. According to a 2024 report from CNBC, retailers saw an average return rate of 16.5%, totaling $743 billion in returned merchandise. For online-only Shopify brands, return rates are often even higher.

If your return process isn’t intentionally designed, returns won’t just frustrate your team—they’ll quietly erode margins, overwhelm CX, and stall growth.

The good news? With the right systems in place, returns can be controlled, optimized, and even turned into a competitive advantage.

Below are 8 proven best practices to ensure your eCommerce business is truly ready for returns, without sacrificing profit.

1. Prevent Returns Before They Happen

The most profitable return is the one that never occurs.

Many returns stem from a gap between customer expectations and reality. Closing that gap starts on the product page.

Best practices include:

• High-fidelity media: Use 4K images, zoom-ins, and short product videos that show items from multiple angles and in real-world contexts
• AR and 3D content: Shopify reports that products with AR or 3D assets can reduce return rates by up to 40%
• Smarter sizing guidance: Go beyond generic size charts with real customer feedback like “runs small” or “size up if between sizes”
• Detailed product descriptions: Include material composition, care instructions, and dimension specifications to set accurate expectations

Prevention directly lowers return volume and protects margins before logistics even begin.

2. Make Your Return Policy Clear (and Easy to Find)

Your return policy shouldn’t live in the footer in tiny font.

Research shows 76% of consumers check the return policy before purchasing, and unclear policies are a major source of abandoned carts and support tickets.

A strong policy clearly answers:

• How long customers have to return items
• Whether returns result in refunds, exchanges, or store credit
• Who pays for return shipping
• What conditions items must be in to qualify for returns
• How quickly refunds are processed

Clarity builds trust, reduces CX friction, and prevents disputes before they start. Consider featuring your policy prominently on product pages and in cart reminders.

3. Replace Email-Based Returns with Self-Service

If customers still have to email support to initiate a return, your process is already behind.

A self-service return portal allows customers to:

• Enter their order number
• Select a return reason
• Generate a label instantly
• Track their return status in real-time

Platforms like Corso eliminate manual workflows, reduce support volume by up to 60%, and speed up resolution, without adding headcount. Your CX team can focus on high-value interactions instead of processing repetitive return requests.

4. Use Exchange-First Logic to Retain Revenue

Refund-first flows quietly kill revenue.

Instead, modern return systems prioritize exchange-first logic, encouraging customers to swap items rather than abandon the purchase altogether.

Even more powerful: instant exchanges, where the replacement ships immediately, before the original item is received.

This approach:

• Preserves revenue that would otherwise be lost to refunds
• Improves customer satisfaction by eliminating wait times
• Keeps customers engaged with your brand
• Increases lifetime value by maintaining the relationship

Corso’s exchange-first workflows help brands convert up to 40% of potential refunds into exchanges, protecting revenue while delivering better customer experiences.

5. Standardize Warehouse Return Processing

Once a return arrives, speed matters.

Without a clear triage system, returned items sit idle, losing value by the day. A standardized grading process increases recovery rate and resale velocity.

A simple framework:

• Grade A: New condition → restock immediately for full-price resale
• Grade B: Open box or minor wear → resell via outlet or discount channel
• Grade C: Damaged or defective → recycle, donate, or liquidate

Implement clear visual guides and training for warehouse staff to ensure consistent grading. Faster processing means higher recovery rates, lower holding costs, and improved inventory accuracy.

6. Turn Return Data into Product Intelligence

Returns are one of the most overlooked data sources in eCommerce.

When multiple customers return the same item for the same reason—fit, quality, or material—that’s not a customer issue. It’s a product issue.

Analyzing return reasons helps teams:

• Identify manufacturing defects early
• Improve sizing accuracy across product lines
• Refine product descriptions to set better expectations
• Make informed decisions about inventory and future product development
• Reduce repeat issues that drive future returns

Smart brands treat returns as feedback, not failure. With Corso’s analytics dashboard, you can track return reasons by SKU, identify trends, and take action before small issues become costly problems.

7. Offer Sustainable, Low-Friction Return Options

Returns carry a significant environmental and operational cost.

Options like box-free or label-free returns:

• Reduce packaging waste
• Allow for consolidated shipping
• Lower cost per return
• Improve convenience for customers

Consider offering multiple return methods to match customer preferences: drop-off at retail partners, USPS pickup, or carrier drop-off. Sustainability and profitability don’t have to be at odds, done right, they reinforce each other while strengthening your brand reputation.

8. Protect Profit with Shipping Protection

Not all returns are voluntary.

Lost, stolen, or damaged shipments account for a significant portion of return volume, and replacement costs often come straight out of margin. Industry data shows that shipping issues affect 3-5% of all orders, creating unexpected costs that add up quickly.

With shipping protection, customers opt in at checkout, shifting the financial burden of shipping issues away from your business while ensuring fast resolution.

Corso Shipping Protection resolves claims in under 24 hours, protecting both customer trust and profitability. Instead of absorbing the cost of lost packages or damaged goods, you can offer immediate replacements without impacting your bottom line.

Conclusion: Returns Should Protect Profit, Not Destroy It

Returns don’t have to be a liability.

With the right prevention strategies, automation, and data-driven workflows, returns become a controlled, predictable part of growth, not a margin killer.

Brands that invest in their return experience save time, reduce costs, and retain customers long after the sale. The post-purchase experience is increasingly what separates growing brands from stagnant ones.

Is your return process ready to scale?

Schedule a demo with Corso and see how leading Shopify brands are future-proofing their margins.

Frequently Asked Questions (FAQs)

1. What is the average cost to process an eCommerce return?

According to Supply Chain Management Review, the total cost of an eCommerce return—including shipping, labor, and loss of value—ranges from 20% to 65% of the item’s original price. This includes reverse logistics, inspection time, restocking, and potential markdowns.

2. Should eCommerce brands charge for return shipping?

It depends on your strategy. While ReadyCloud reports that 79% of shoppers prefer free returns, many brands now charge a small flat fee for refunds while offering free exchanges to balance CX and cost control. This approach discourages casual returns while still providing value to customers who need a different size or style.

3. How can I reduce size-related returns and bracketing?

Bracketing (ordering multiple sizes with the intention to return most) is best reduced through:

• High-quality product videos featuring diverse body types
• AI-driven sizing tools that provide personalized recommendations
• Clear fit guidance based on real customer data
• Customer reviews that include fit feedback

Confidence at purchase leads to fewer returns.

4. How does returns automation protect profit?

Automation reduces manual labor, shortens resolution time, encourages exchanges over refunds, and surfaces actionable data—cutting costs while improving customer satisfaction. Brands using automated returns platforms typically see 40-60% reductions in support volume and significantly faster processing times.

5. How quickly should I process refunds after receiving a return?

Best practice is to process refunds within 3-5 business days of receiving the returned item. Faster refund processing improves customer satisfaction and builds trust, encouraging repeat purchases. Automated systems can trigger refunds immediately upon warehouse scanning, eliminating delays.