Back to all
Retailers are already bracing for the holiday rush, knowing that sales in November and December often turn into returns in January. Last year, U.S. shoppers sent back an estimated $112 billion worth of goods, much of it from peak season purchases, driven by bracketing, bulk ordering, and unmet expectations. Some companies are turning to technology to reduce the impact, such as using AI-powered tools to automatically assess product condition and route returns efficiently, or launching dedicated online marketplaces for returned goods that cannot go back into regular inventory, according to Vogue Business.
The challenge spans fashion, electronics, home goods, and more. That reality was the focus of a recent Rithum webinar with Fabian Ortmann, Head of Returns, ZEOS, Kevin Brown, Director, Sales and Strategic Partnerships, Essendant Fulfillment Services, and Lou Camassa, Director of Product, Rithum. Through data, real-world examples, and practical advice, they shared what works to reduce return rates without losing customer trust.
How to improve product pages to reduce retail returns
Every product page is a chance to keep a sale from becoming a return. Even small changes in how information is presented can shift the outcome. Lou described a case where a retailer listed the same item on its own site and on a marketplace. The brand’s page told shoppers to size up, but that line was not including in the marketplace listing. Returns on the marketplace version increased, each one chipping away at margins.
Fabian’s experience at Zalando underscored the same point, though his team looked at the fix from another angle. About a third of their returns were tied to size and fit. Adding the model’s height and size to photos gave customers a better sense of proportion, while short videos showing the product in motion helped set realistic expectations.
“We see very significant improvements on the return rates when shoppers can picture how the product fits in real life.” – Fabian Ortmann, ZEOS
Kevin brought the conversation beyond apparel. For electronics, furniture, and other categories, the most reliable sizing or performance advice often comes from other customers. He pointed to reviews that spell out precise measurements, compatibility notes, or assembly tips as powerful tools for setting expectations.
“I’m a two XL tall, six-five, and I rely on reviews that say, ‘Here’s my size and weight. This is what fits me well,’” he said, noting that the same principle works whether you are buying a jacket or a desk.
Speed matters: why acting fast on returns protects profit
When a customer decides to send something back, speed becomes critical. Kevin described the “trunk time” he has seen, where returns sit at home or in a car for days or weeks before being shipped. This delay cuts into resale opportunities for any category, whether it is seasonal apparel or high-demand electronics. Prepaid labels, clear instructions, and easy drop-off options can make the difference between a resale and a write-off.
Fabian’s team at Zalando tested shorter return windows, moving from one hundred days to thirty. Customers accepted the change because most were already returning within that timeframe, and the tighter window meant popular products got back into circulation faster.
Lou tied faster returns to customer confidence. When shoppers know how the process works before buying and get updates along the way, they are more willing to shop again. Even telling customers when they can expect a refund helps close the loop in a positive way.
Preventing return fraud without losing good customers
Fraud takes many forms and it was one questions that webinar viewers wanted to learn how to answer. “For the better part of 20+ years in the industry, the unfortunate reality of it is, what used to surprise me, no longer surprises me,” Kevin said. He has seen laptops returned in greasy pizza boxes and cocktail dresses returned with champagne stains with tags still in place.
Lou shared how a retailer reduced fraudulent returns by keeping an internal watchlist of repeat offenders and flagging their orders before shipping. Fabian’s approach favored protecting return flexibility for trusted customers while limiting it for those with a record of abuse.
During the Q&A, an audience member asked how to stop a bad customer from continuing to buy and return. Kevin’s answer started with tracking returns at the customer level. Once a pattern is identified, the next step is having a strong and well-communicated policy. He advised against detailing punishments in that policy, as those details can circulate quickly on social media and damage the brand.
Instead, he suggested sending a professional message to customers whose behavior raises concern, explaining the situation and giving them a chance to change.
“Simply cutting them off is bad news,” he said. “The cost of customer acquisition is too high and the risk of creating a bad public image is terribly expensive.”
In some cases, particularly for low-cost products, Kevin noted it might be more efficient to let the customer keep the item and still process the refund, as long as patterns are monitored.
How payment methods and delivery speed impact returns
Not every return happens because the product disappointed. Fabian highlighted how payment methods can influence behavior. In Northern and Western Europe, where paying by invoice after delivery is common, return rates run higher than in Southern Europe, where prepaid cards are more typical.
Late deliveries also have an impact, especially for purchases linked to specific events. Kevin added that orders shipped across borders without prepaid duties and taxes often get refused at the door, leading to expensive reverse shipments. These patterns play out in fashion, consumer electronics, home goods, and other categories where shipping costs can be substantial.
Turning return data into a competitive advantage
One takeaway cut through every example: returns are more than an expense to control. They are direct feedback from customers about where the shopping experience falls short. Fabian urged brands to use return data to strengthen product descriptions, improve size guides, and even adjust sourcing. Kevin stressed the need for company-wide accountability, with someone responsible for leading return-reduction efforts.
The most effective retailers treat each return as information that can prevent the next one, turning potential losses into better customer experiences and stronger repeat sales.
Want to watch the full conversation? Click here.
Some quotes have been lightly edited for context and clarity.
