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Should you offer free returns when selling online?

Should you offer free returns when selling online?

Should you offer free returns when selling online?

Should you offer free returns when selling online?

Should you offer paid or free returns? Discover data from 10,000 European consumers to craft the best return policy for your business.

Should you offer paid or free returns? Discover data from 10,000 European consumers to craft the best return policy for your business.

19 Nov 2024

Imagine you're a chef who's just opened a new restaurant. You've crafted a menu of delicious dishes, but there's a catch: diners must pay for their meal before tasting it. If they don't like it, they can send it back – but they'll have to cover the cost of disposal.

How many customers do you think would take that risk?

This scenario is similar to the dilemma you might face when deciding between free and paid returns. In the online space, where customers can't touch, smell, or try products before purchasing, return policies act as a safety net for wary shoppers. But returns can be costly for your business. And a very high return rate can eat up most of your profits.

If you’re an online retailer, you might feel like you're caught between trying to increase conversion and reduce costs.

Imagine you're a chef who's just opened a new restaurant. You've crafted a menu of delicious dishes, but there's a catch: diners must pay for their meal before tasting it. If they don't like it, they can send it back – but they'll have to cover the cost of disposal.

How many customers do you think would take that risk?

This scenario is similar to the dilemma you might face when deciding between free and paid returns. In the online space, where customers can't touch, smell, or try products before purchasing, return policies act as a safety net for wary shoppers. But returns can be costly for your business. And a very high return rate can eat up most of your profits.

If you’re an online retailer, you might feel like you're caught between trying to increase conversion and reduce costs.

Imagine you're a chef who's just opened a new restaurant. You've crafted a menu of delicious dishes, but there's a catch: diners must pay for their meal before tasting it. If they don't like it, they can send it back – but they'll have to cover the cost of disposal.

How many customers do you think would take that risk?

This scenario is similar to the dilemma you might face when deciding between free and paid returns. In the online space, where customers can't touch, smell, or try products before purchasing, return policies act as a safety net for wary shoppers. But returns can be costly for your business. And a very high return rate can eat up most of your profits.

If you’re an online retailer, you might feel like you're caught between trying to increase conversion and reduce costs.

Imagine you're a chef who's just opened a new restaurant. You've crafted a menu of delicious dishes, but there's a catch: diners must pay for their meal before tasting it. If they don't like it, they can send it back – but they'll have to cover the cost of disposal.

How many customers do you think would take that risk?

This scenario is similar to the dilemma you might face when deciding between free and paid returns. In the online space, where customers can't touch, smell, or try products before purchasing, return policies act as a safety net for wary shoppers. But returns can be costly for your business. And a very high return rate can eat up most of your profits.

If you’re an online retailer, you might feel like you're caught between trying to increase conversion and reduce costs.

Should you offer free returns?

To cut through the noise, we surveyed 10,000 consumers across five European markets to understand how they feel about paid returns and whether they affect their decision to buy from a retailer.

The results are stark. Almost 1 in 5 consumers (19%) say they wouldn’t buy from a retailer if they have to pay to return items. And in total, 62% of consumers say they’re less likely to make a purchase if they have to pay for returns. This figure includes a quarter of online shoppers (25%) who say they’re a lot less likely to buy without free returns.

In fact, less than 1 in 5 consumers (19%) say having to pay for returns would have no impact on whether they make a purchase or not.

“Following the post-pandemic surge in ecommerce, several large retailers implemented paid returns to offset rising operational costs,” explains Ibrahim Özcan, Senior Partner Manager at shipping software Sendcloud.

“Around 25% of major European retailers switched to this model. While some retailers have reverted to free returns due to customer pushback – nearly two-thirds of EU consumers say they’d reconsider buying from a store that charges for returns – there’s a shift in consumer behaviour.

“In fashion, for example, paid returns are becoming more accepted as part of the shopping experience. Consumers are adjusting, and many large retailers have made it the norm. Businesses are now focusing on creating return strategies that fit their brand – whether through sustainability initiatives or more flexible return policies.”

In a separate question, we also asked consumers to rank how important certain factors were when they were choosing a retailer.

As you can see, free returns are the biggest draw for consumers when looking at who to shop with.

These findings paint a clear picture: offering free returns can significantly improve your chances of attracting and converting online shoppers. But, it’s not always so easy. After all, sometimes you have to balance that with a policy which won’t potentially put you out of business.

To help, below we explore some of the ways in which you can balance offering free returns with driving revenue and profits.

To cut through the noise, we surveyed 10,000 consumers across five European markets to understand how they feel about paid returns and whether they affect their decision to buy from a retailer.

The results are stark. Almost 1 in 5 consumers (19%) say they wouldn’t buy from a retailer if they have to pay to return items. And in total, 62% of consumers say they’re less likely to make a purchase if they have to pay for returns. This figure includes a quarter of online shoppers (25%) who say they’re a lot less likely to buy without free returns.

In fact, less than 1 in 5 consumers (19%) say having to pay for returns would have no impact on whether they make a purchase or not.

“Following the post-pandemic surge in ecommerce, several large retailers implemented paid returns to offset rising operational costs,” explains Ibrahim Özcan, Senior Partner Manager at shipping software Sendcloud.

“Around 25% of major European retailers switched to this model. While some retailers have reverted to free returns due to customer pushback – nearly two-thirds of EU consumers say they’d reconsider buying from a store that charges for returns – there’s a shift in consumer behaviour.

“In fashion, for example, paid returns are becoming more accepted as part of the shopping experience. Consumers are adjusting, and many large retailers have made it the norm. Businesses are now focusing on creating return strategies that fit their brand – whether through sustainability initiatives or more flexible return policies.”

In a separate question, we also asked consumers to rank how important certain factors were when they were choosing a retailer.

As you can see, free returns are the biggest draw for consumers when looking at who to shop with.

These findings paint a clear picture: offering free returns can significantly improve your chances of attracting and converting online shoppers. But, it’s not always so easy. After all, sometimes you have to balance that with a policy which won’t potentially put you out of business.

To help, below we explore some of the ways in which you can balance offering free returns with driving revenue and profits.

To cut through the noise, we surveyed 10,000 consumers across five European markets to understand how they feel about paid returns and whether they affect their decision to buy from a retailer.

The results are stark. Almost 1 in 5 consumers (19%) say they wouldn’t buy from a retailer if they have to pay to return items. And in total, 62% of consumers say they’re less likely to make a purchase if they have to pay for returns. This figure includes a quarter of online shoppers (25%) who say they’re a lot less likely to buy without free returns.

In fact, less than 1 in 5 consumers (19%) say having to pay for returns would have no impact on whether they make a purchase or not.

“Following the post-pandemic surge in ecommerce, several large retailers implemented paid returns to offset rising operational costs,” explains Ibrahim Özcan, Senior Partner Manager at shipping software Sendcloud.

“Around 25% of major European retailers switched to this model. While some retailers have reverted to free returns due to customer pushback – nearly two-thirds of EU consumers say they’d reconsider buying from a store that charges for returns – there’s a shift in consumer behaviour.

“In fashion, for example, paid returns are becoming more accepted as part of the shopping experience. Consumers are adjusting, and many large retailers have made it the norm. Businesses are now focusing on creating return strategies that fit their brand – whether through sustainability initiatives or more flexible return policies.”

In a separate question, we also asked consumers to rank how important certain factors were when they were choosing a retailer.

As you can see, free returns are the biggest draw for consumers when looking at who to shop with.

These findings paint a clear picture: offering free returns can significantly improve your chances of attracting and converting online shoppers. But, it’s not always so easy. After all, sometimes you have to balance that with a policy which won’t potentially put you out of business.

To help, below we explore some of the ways in which you can balance offering free returns with driving revenue and profits.

To cut through the noise, we surveyed 10,000 consumers across five European markets to understand how they feel about paid returns and whether they affect their decision to buy from a retailer.

The results are stark. Almost 1 in 5 consumers (19%) say they wouldn’t buy from a retailer if they have to pay to return items. And in total, 62% of consumers say they’re less likely to make a purchase if they have to pay for returns. This figure includes a quarter of online shoppers (25%) who say they’re a lot less likely to buy without free returns.

In fact, less than 1 in 5 consumers (19%) say having to pay for returns would have no impact on whether they make a purchase or not.

“Following the post-pandemic surge in ecommerce, several large retailers implemented paid returns to offset rising operational costs,” explains Ibrahim Özcan, Senior Partner Manager at shipping software Sendcloud.

“Around 25% of major European retailers switched to this model. While some retailers have reverted to free returns due to customer pushback – nearly two-thirds of EU consumers say they’d reconsider buying from a store that charges for returns – there’s a shift in consumer behaviour.

“In fashion, for example, paid returns are becoming more accepted as part of the shopping experience. Consumers are adjusting, and many large retailers have made it the norm. Businesses are now focusing on creating return strategies that fit their brand – whether through sustainability initiatives or more flexible return policies.”

In a separate question, we also asked consumers to rank how important certain factors were when they were choosing a retailer.

As you can see, free returns are the biggest draw for consumers when looking at who to shop with.

These findings paint a clear picture: offering free returns can significantly improve your chances of attracting and converting online shoppers. But, it’s not always so easy. After all, sometimes you have to balance that with a policy which won’t potentially put you out of business.

To help, below we explore some of the ways in which you can balance offering free returns with driving revenue and profits.

The pros and cons of free returns

Offering free returns isn’t just about generosity. Instead, it's about building trust, boosting conversions, and creating a shopping experience that makes customers feel confident to buy. Here’s why it works:

Benefits of free returns

Build trust: Free returns reduce the perceived risk of buying something online. This means shoppers are more likely to take a chance on something that they can easily send back.
Higher average order values: Shoppers feel comfortable buying more items when they know they can return items hassle-free.
Build loyalty: Make returns easy and customers will remember. That can mean they’ll choose your brand over others in the future.
Competitive advantage: If your competition doesn’t offer free returns, you have a surefire way to stand out.
Reduced cart abandonment: Free returns can ease that hesitation, reducing cart abandonment and driving conversions by removing the "what if it doesn't work out" anxiety.
More customer data: You can analyse why customers return products to optimise how and what you sell.

“At Sendcloud, we’ve found that offering free returns can increase conversion rates by up to 30%,” Ibrahim says. “Which shows that customers are more likely to buy when there’s no cost for returns. This is especially important in markets like Germany and the UK, where consumers expect a seamless return experience. Free returns also foster loyalty – 60% of customers are more likely to shop again if the return process is smooth.”

Drawbacks of free returns

Offering free returns may seem like a customer-centric move, but it also comes with some potential drawbacks.

Less profit: From shipping to processing, returns can eat into your bottom line.
Operational stress: Warehousing, restocking, and quality checks cost you time and can strain your resources.
Encourage overbuying: Customers may buy more than they need when they can return items for free. That can lead to higher return rates and inflated sales figures for your business.
Higher fraud risk: Free returns open the door for abuse, like wardrobing or returning used products, which further depletes revenue.
Cash flow complexity: Trying to manage your cash flow when dealing with a high return rate is almost impossible.
Product devaluation: If you can’t resell returned products at full price, then you’re likely leaking revenue and profits.

“Managing free returns can be costly, with return rates reaching up to 25% in some sectors,” Ibrahim adds. “Logistics, processing, and restocking can all eat into profit margins. Interestingly, we’re now seeing that large retailers are normalising paid returns, especially in fashion. And consumers are gradually getting used to it. The key is for businesses to develop a return strategy that aligns with their brand values – such as incorporating return solutions and adding sustainability into their return policies.”

Offering free returns isn’t just about generosity. Instead, it's about building trust, boosting conversions, and creating a shopping experience that makes customers feel confident to buy. Here’s why it works:

Benefits of free returns

Build trust: Free returns reduce the perceived risk of buying something online. This means shoppers are more likely to take a chance on something that they can easily send back.
Higher average order values: Shoppers feel comfortable buying more items when they know they can return items hassle-free.
Build loyalty: Make returns easy and customers will remember. That can mean they’ll choose your brand over others in the future.
Competitive advantage: If your competition doesn’t offer free returns, you have a surefire way to stand out.
Reduced cart abandonment: Free returns can ease that hesitation, reducing cart abandonment and driving conversions by removing the "what if it doesn't work out" anxiety.
More customer data: You can analyse why customers return products to optimise how and what you sell.

“At Sendcloud, we’ve found that offering free returns can increase conversion rates by up to 30%,” Ibrahim says. “Which shows that customers are more likely to buy when there’s no cost for returns. This is especially important in markets like Germany and the UK, where consumers expect a seamless return experience. Free returns also foster loyalty – 60% of customers are more likely to shop again if the return process is smooth.”

Drawbacks of free returns

Offering free returns may seem like a customer-centric move, but it also comes with some potential drawbacks.

Less profit: From shipping to processing, returns can eat into your bottom line.
Operational stress: Warehousing, restocking, and quality checks cost you time and can strain your resources.
Encourage overbuying: Customers may buy more than they need when they can return items for free. That can lead to higher return rates and inflated sales figures for your business.
Higher fraud risk: Free returns open the door for abuse, like wardrobing or returning used products, which further depletes revenue.
Cash flow complexity: Trying to manage your cash flow when dealing with a high return rate is almost impossible.
Product devaluation: If you can’t resell returned products at full price, then you’re likely leaking revenue and profits.

“Managing free returns can be costly, with return rates reaching up to 25% in some sectors,” Ibrahim adds. “Logistics, processing, and restocking can all eat into profit margins. Interestingly, we’re now seeing that large retailers are normalising paid returns, especially in fashion. And consumers are gradually getting used to it. The key is for businesses to develop a return strategy that aligns with their brand values – such as incorporating return solutions and adding sustainability into their return policies.”

Offering free returns isn’t just about generosity. Instead, it's about building trust, boosting conversions, and creating a shopping experience that makes customers feel confident to buy. Here’s why it works:

Benefits of free returns

Build trust: Free returns reduce the perceived risk of buying something online. This means shoppers are more likely to take a chance on something that they can easily send back.
Higher average order values: Shoppers feel comfortable buying more items when they know they can return items hassle-free.
Build loyalty: Make returns easy and customers will remember. That can mean they’ll choose your brand over others in the future.
Competitive advantage: If your competition doesn’t offer free returns, you have a surefire way to stand out.
Reduced cart abandonment: Free returns can ease that hesitation, reducing cart abandonment and driving conversions by removing the "what if it doesn't work out" anxiety.
More customer data: You can analyse why customers return products to optimise how and what you sell.

“At Sendcloud, we’ve found that offering free returns can increase conversion rates by up to 30%,” Ibrahim says. “Which shows that customers are more likely to buy when there’s no cost for returns. This is especially important in markets like Germany and the UK, where consumers expect a seamless return experience. Free returns also foster loyalty – 60% of customers are more likely to shop again if the return process is smooth.”

Drawbacks of free returns

Offering free returns may seem like a customer-centric move, but it also comes with some potential drawbacks.

Less profit: From shipping to processing, returns can eat into your bottom line.
Operational stress: Warehousing, restocking, and quality checks cost you time and can strain your resources.
Encourage overbuying: Customers may buy more than they need when they can return items for free. That can lead to higher return rates and inflated sales figures for your business.
Higher fraud risk: Free returns open the door for abuse, like wardrobing or returning used products, which further depletes revenue.
Cash flow complexity: Trying to manage your cash flow when dealing with a high return rate is almost impossible.
Product devaluation: If you can’t resell returned products at full price, then you’re likely leaking revenue and profits.

“Managing free returns can be costly, with return rates reaching up to 25% in some sectors,” Ibrahim adds. “Logistics, processing, and restocking can all eat into profit margins. Interestingly, we’re now seeing that large retailers are normalising paid returns, especially in fashion. And consumers are gradually getting used to it. The key is for businesses to develop a return strategy that aligns with their brand values – such as incorporating return solutions and adding sustainability into their return policies.”

Offering free returns isn’t just about generosity. Instead, it's about building trust, boosting conversions, and creating a shopping experience that makes customers feel confident to buy. Here’s why it works:

Benefits of free returns

Build trust: Free returns reduce the perceived risk of buying something online. This means shoppers are more likely to take a chance on something that they can easily send back.
Higher average order values: Shoppers feel comfortable buying more items when they know they can return items hassle-free.
Build loyalty: Make returns easy and customers will remember. That can mean they’ll choose your brand over others in the future.
Competitive advantage: If your competition doesn’t offer free returns, you have a surefire way to stand out.
Reduced cart abandonment: Free returns can ease that hesitation, reducing cart abandonment and driving conversions by removing the "what if it doesn't work out" anxiety.
More customer data: You can analyse why customers return products to optimise how and what you sell.

“At Sendcloud, we’ve found that offering free returns can increase conversion rates by up to 30%,” Ibrahim says. “Which shows that customers are more likely to buy when there’s no cost for returns. This is especially important in markets like Germany and the UK, where consumers expect a seamless return experience. Free returns also foster loyalty – 60% of customers are more likely to shop again if the return process is smooth.”

Drawbacks of free returns

Offering free returns may seem like a customer-centric move, but it also comes with some potential drawbacks.

Less profit: From shipping to processing, returns can eat into your bottom line.
Operational stress: Warehousing, restocking, and quality checks cost you time and can strain your resources.
Encourage overbuying: Customers may buy more than they need when they can return items for free. That can lead to higher return rates and inflated sales figures for your business.
Higher fraud risk: Free returns open the door for abuse, like wardrobing or returning used products, which further depletes revenue.
Cash flow complexity: Trying to manage your cash flow when dealing with a high return rate is almost impossible.
Product devaluation: If you can’t resell returned products at full price, then you’re likely leaking revenue and profits.

“Managing free returns can be costly, with return rates reaching up to 25% in some sectors,” Ibrahim adds. “Logistics, processing, and restocking can all eat into profit margins. Interestingly, we’re now seeing that large retailers are normalising paid returns, especially in fashion. And consumers are gradually getting used to it. The key is for businesses to develop a return strategy that aligns with their brand values – such as incorporating return solutions and adding sustainability into their return policies.”

How to create the best returns policy

It can feel daunting knowing exactly what to offer in your returns policy. But understanding your unique audience, product mix, and long-term goals should guide you to the right result. Here are some key things to look at when creating a returns policy:

Product type and price point
Target customer demographics
Profit margins
Competitor policies
Operational capabilities

Remember, transparency is key. Whatever policy you choose, make sure it's clearly communicated to your customers.

It can feel daunting knowing exactly what to offer in your returns policy. But understanding your unique audience, product mix, and long-term goals should guide you to the right result. Here are some key things to look at when creating a returns policy:

Product type and price point
Target customer demographics
Profit margins
Competitor policies
Operational capabilities

Remember, transparency is key. Whatever policy you choose, make sure it's clearly communicated to your customers.

It can feel daunting knowing exactly what to offer in your returns policy. But understanding your unique audience, product mix, and long-term goals should guide you to the right result. Here are some key things to look at when creating a returns policy:

Product type and price point
Target customer demographics
Profit margins
Competitor policies
Operational capabilities

Remember, transparency is key. Whatever policy you choose, make sure it's clearly communicated to your customers.

It can feel daunting knowing exactly what to offer in your returns policy. But understanding your unique audience, product mix, and long-term goals should guide you to the right result. Here are some key things to look at when creating a returns policy:

Product type and price point
Target customer demographics
Profit margins
Competitor policies
Operational capabilities

Remember, transparency is key. Whatever policy you choose, make sure it's clearly communicated to your customers.

Offer paid returns without losing sales

While most customers prefer free returns, it’s still possible to create a returns policy that will meet your goals and deliver success.

Here are a few strategies that can reduce the disadvantages of offering free returns while still ensuring you’re making money:

Offer free returns to loyal customers: Encourage repeat purchases by offering free returns to loyal customers, or customers who enrol in a premium membership program.
Free returns for high-value orders: Waive return fees for orders above a certain value, encouraging customers to spend more to qualify.
Optional return insurance: Offer customers the option to purchase return insurance at checkout for a small fee. This allows customers to pay a nominal amount upfront to cover potential return costs.
Eco-friendly return incentives: Charge for returns, but donate a portion of the fee to an environmental cause to offset environmental costs and build loyalty with shoppers.
Simplify your return process: Even with a fee, a super easy return process can make customers feel confident to buy from your business.
Seasonal free return offers: Drive sales during key shopping periods by offering free returns, while maintaining a paid return policy during the rest of the year.

“Businesses can balance free returns with profitability by employing several strategies,” Ibrahim adds. “One effective approach is to offer vouchers instead of cash refunds for returned items. This keeps revenue within the business and encourages repeat purchases. And enabling multiple carriers in the reverse checkout allows customers to choose their preferred carrier, improving satisfaction while reducing return costs.

“Return analytics also play a crucial role. By understanding why items are being returned – whether due to sizing, product quality, or other reasons – retailers can make informed decisions that reduce return rates. Optimising product descriptions, implementing size guides, and analysing returns data through platforms like Sendcloud can lead to fewer returns and a more efficient overall process.”

While most customers prefer free returns, it’s still possible to create a returns policy that will meet your goals and deliver success.

Here are a few strategies that can reduce the disadvantages of offering free returns while still ensuring you’re making money:

Offer free returns to loyal customers: Encourage repeat purchases by offering free returns to loyal customers, or customers who enrol in a premium membership program.
Free returns for high-value orders: Waive return fees for orders above a certain value, encouraging customers to spend more to qualify.
Optional return insurance: Offer customers the option to purchase return insurance at checkout for a small fee. This allows customers to pay a nominal amount upfront to cover potential return costs.
Eco-friendly return incentives: Charge for returns, but donate a portion of the fee to an environmental cause to offset environmental costs and build loyalty with shoppers.
Simplify your return process: Even with a fee, a super easy return process can make customers feel confident to buy from your business.
Seasonal free return offers: Drive sales during key shopping periods by offering free returns, while maintaining a paid return policy during the rest of the year.

“Businesses can balance free returns with profitability by employing several strategies,” Ibrahim adds. “One effective approach is to offer vouchers instead of cash refunds for returned items. This keeps revenue within the business and encourages repeat purchases. And enabling multiple carriers in the reverse checkout allows customers to choose their preferred carrier, improving satisfaction while reducing return costs.

“Return analytics also play a crucial role. By understanding why items are being returned – whether due to sizing, product quality, or other reasons – retailers can make informed decisions that reduce return rates. Optimising product descriptions, implementing size guides, and analysing returns data through platforms like Sendcloud can lead to fewer returns and a more efficient overall process.”

While most customers prefer free returns, it’s still possible to create a returns policy that will meet your goals and deliver success.

Here are a few strategies that can reduce the disadvantages of offering free returns while still ensuring you’re making money:

Offer free returns to loyal customers: Encourage repeat purchases by offering free returns to loyal customers, or customers who enrol in a premium membership program.
Free returns for high-value orders: Waive return fees for orders above a certain value, encouraging customers to spend more to qualify.
Optional return insurance: Offer customers the option to purchase return insurance at checkout for a small fee. This allows customers to pay a nominal amount upfront to cover potential return costs.
Eco-friendly return incentives: Charge for returns, but donate a portion of the fee to an environmental cause to offset environmental costs and build loyalty with shoppers.
Simplify your return process: Even with a fee, a super easy return process can make customers feel confident to buy from your business.
Seasonal free return offers: Drive sales during key shopping periods by offering free returns, while maintaining a paid return policy during the rest of the year.

“Businesses can balance free returns with profitability by employing several strategies,” Ibrahim adds. “One effective approach is to offer vouchers instead of cash refunds for returned items. This keeps revenue within the business and encourages repeat purchases. And enabling multiple carriers in the reverse checkout allows customers to choose their preferred carrier, improving satisfaction while reducing return costs.

“Return analytics also play a crucial role. By understanding why items are being returned – whether due to sizing, product quality, or other reasons – retailers can make informed decisions that reduce return rates. Optimising product descriptions, implementing size guides, and analysing returns data through platforms like Sendcloud can lead to fewer returns and a more efficient overall process.”

While most customers prefer free returns, it’s still possible to create a returns policy that will meet your goals and deliver success.

Here are a few strategies that can reduce the disadvantages of offering free returns while still ensuring you’re making money:

Offer free returns to loyal customers: Encourage repeat purchases by offering free returns to loyal customers, or customers who enrol in a premium membership program.
Free returns for high-value orders: Waive return fees for orders above a certain value, encouraging customers to spend more to qualify.
Optional return insurance: Offer customers the option to purchase return insurance at checkout for a small fee. This allows customers to pay a nominal amount upfront to cover potential return costs.
Eco-friendly return incentives: Charge for returns, but donate a portion of the fee to an environmental cause to offset environmental costs and build loyalty with shoppers.
Simplify your return process: Even with a fee, a super easy return process can make customers feel confident to buy from your business.
Seasonal free return offers: Drive sales during key shopping periods by offering free returns, while maintaining a paid return policy during the rest of the year.

“Businesses can balance free returns with profitability by employing several strategies,” Ibrahim adds. “One effective approach is to offer vouchers instead of cash refunds for returned items. This keeps revenue within the business and encourages repeat purchases. And enabling multiple carriers in the reverse checkout allows customers to choose their preferred carrier, improving satisfaction while reducing return costs.

“Return analytics also play a crucial role. By understanding why items are being returned – whether due to sizing, product quality, or other reasons – retailers can make informed decisions that reduce return rates. Optimising product descriptions, implementing size guides, and analysing returns data through platforms like Sendcloud can lead to fewer returns and a more efficient overall process.”

Get more expert ecommerce insights

If you’re running an ecommerce business, the European Ecommerce Report 2025 uses data from 10,000 consumers to show how you can attract and convert shoppers across the continent. Here’s what it will show you:

How to attract shoppers to your site
How to drive browsers to checkout
How to prevent checkout abandonments
How to build loyalty and drive repurchases
An in-depth analysis of key European markets.

Access all the insights and learn how to delight customers, maximise sales, and build loyalty.

Explore the full report.

If you’re running an ecommerce business, the European Ecommerce Report 2025 uses data from 10,000 consumers to show how you can attract and convert shoppers across the continent. Here’s what it will show you:

How to attract shoppers to your site
How to drive browsers to checkout
How to prevent checkout abandonments
How to build loyalty and drive repurchases
An in-depth analysis of key European markets.

Access all the insights and learn how to delight customers, maximise sales, and build loyalty.

Explore the full report.

If you’re running an ecommerce business, the European Ecommerce Report 2025 uses data from 10,000 consumers to show how you can attract and convert shoppers across the continent. Here’s what it will show you:

How to attract shoppers to your site
How to drive browsers to checkout
How to prevent checkout abandonments
How to build loyalty and drive repurchases
An in-depth analysis of key European markets.

Access all the insights and learn how to delight customers, maximise sales, and build loyalty.

Explore the full report.

If you’re running an ecommerce business, the European Ecommerce Report 2025 uses data from 10,000 consumers to show how you can attract and convert shoppers across the continent. Here’s what it will show you:

How to attract shoppers to your site
How to drive browsers to checkout
How to prevent checkout abandonments
How to build loyalty and drive repurchases
An in-depth analysis of key European markets.

Access all the insights and learn how to delight customers, maximise sales, and build loyalty.

Explore the full report.

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Table of contents

Should you offer free returns?

The pros and cons of free returns

How to create the best returns policy

Offer paid returns without losing sales

Get more expert ecommerce insights

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Mollie GrowthShould you offer free returns when selling online?

Mollie GrowthShould you offer free returns when selling online?

Mollie GrowthShould you offer free returns when selling online?