Retailers have long offered free and flexible returns to meet customer expectations. However, as return rates rise—especially in industries like fashion, health, and beauty—the financial burden is becoming unsustainable. High return rates not only lower margins but also create logistical challenges, particularly for international e-tailers.

Before focusing on whether returns should be free, e-tailers should take steps to minimize the number of returns they receive in the first place. This will not only cut down on costs for the e-tailer, but it’s much more sustainable given the environmental impact of returns, including increased transportation emissions and packaging waste.

To help minimize returns, businesses should first focus on providing accurate product descriptions, high-quality images, and customer reviews to help shoppers make informed decisions. Addressing fit and sizing issues through detailed guides or virtual try-on tools can also significantly reduce returns. Additionally, proper packaging is essential to prevent damage in transit, further lowering return rates. Finally, having a transparent and well-structured returns policy is equally important. Clearly communicating your returns policy, timelines, and any associated costs upfront helps set customer expectations and can reduce overall returns.

For retailers managing global returns, the challenges increase due to customs regulations, longer transit times, and higher costs. Partnering with an experienced logistics provider that specializes in international returns can help streamline this process and enhance customer satisfaction. As the cost of returns continues to rise, some retailers are reconsidering their policies by introducing specific return fees or offering subscription-based models that include free returns as a perk. Others are incentivizing exchanges over refunds to retain revenue. While free returns have become a standard expectation, the industry may be overdue for a shift that balances customer convenience with sustainability and long-term profitability. Retailers that proactively optimize their returns strategy—through prevention, transparency, and smart logistics—will be best positioned to navigate this evolving landscape.