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Key Takeaways Plan returns handling in advance. Forward-thinking ecommerce retailers treat returns as a predictable flow, eschewing reactive problem-solving in favor of structured workflows.
Implement a defined intake and triage process.
The speed of returns evaluation and processing matters more than perfection.
While consumers might not think twice about sending back an ill-fitting pair of jeans or a duvet cover that isn’t the color they’d envisioned, retailers are thinking long and hard about returns. They’re lying awake at night mulling over how to protect margins as high volumes of returns pile up in their warehouses.
And they’re right to be worried. As much as returns are an unavoidable part of retail operations, volumes are increasing and placing a heavy burden on fulfillment teams and the bottom line. According to National Retail Federation (NRF) estimates, U.S. retailers processed a staggering $849.9 billion in returns in 2025, equivalent to 15.8% of annual sales.
Ecommerce retailers are especially vulnerable, grappling with even higher volumes of returns than the national retail average. The NRF estimates that more than 19% of online sales were returned last year. Similarly, Capital One research highlights the marked discrepancy between ecommerce returns, averaging 24.5% of sales, and the 8.72% return rate for merchandise purchased at brick-and-mortar stores.
Within online marketplaces, fashion retailers are particularly prone to returns challenges. In fact, a recent Statista survey revealed 25% of respondents returned clothing they bought online in the past 12 months, with some estimates suggesting return rates can soar as high as 40% in the fashion industry.
Such high return numbers are due in part to sizing inconsistencies and the ease of free returns. “Bracketing” (buying multiple sizes or colors with the intent of returning items) and “wardrobing” (buying items and returning after wearing once, like a bridesmaid dress) are also driving the flood of returns.
In addition, ecommerce retailers, particularly in the fashion industry, must contend with rapidly emerging — and equally rapidly fading — trends, especially amongst younger consumers influenced by TikTok and Instagram. This volatility contributes to shorter sales cycles, high volumes of returns and reduced resalability.
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