{"id":379593,"date":"2025-07-10T12:22:42","date_gmt":"2025-07-10T12:22:42","guid":{"rendered":"https:\/\/webinterpret.com\/?p=379593"},"modified":"2026-03-16T11:23:31","modified_gmt":"2026-03-16T11:23:31","slug":"ecommerce-and-free-returns","status":"publish","type":"post","link":"https:\/\/webinterpret.com\/en\/blog\/ecommerce-and-free-returns","title":{"rendered":"Ecommerce and free returns: Why offering free returns is vital for online sellers"},"content":{"rendered":"<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">The decision to provide free returns has become a balancing act between meeting customer expectations and running a profitable business.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The widespread availability of free returns has led to a higher percentage of returned items, increasing costs across the board, as retailers must inspect, repackage, and restock each returned product.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Still, the <\/span><a href=\"https:\/\/chainstoreage.com\/news-briefs\/2025-05-23?article=customers-expect-free-returns-dont-always-make-them-honestly\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>research shows<\/u><\/span><\/a><span data-color=\"transparent\"> that as many as 88% of consumers across some of the largest ecommerce marketplaces, such as the <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/ecommerce-us-definitive-guide\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>United States<\/u><\/span><\/a><span data-color=\"transparent\">, <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/ecommerce-germany-definitive-guide\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Germany<\/u><\/span><\/a><span data-color=\"transparent\">, or <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/ecommerce-uk-definitive-guide\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>the UK<\/u><\/span><\/a><span data-color=\"transparent\">, expect free returns as a standard part of the offer.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Consequently, whether or not to offer this option to customers has turned into a burning question that sellers on domestic and international online marketplaces must answer.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">This article will examine why free returns are still a major sales-driving force and whether completely excluding them from your offer is worth the risk.<\/span><\/p>\n<h2>Key takeaways<\/h2>\n<ul data-pm-slice=\"3 3 []\">\n<li><span data-color=\"transparent\">In 2025, the <\/span><a href=\"https:\/\/capitaloneshopping.com\/research\/average-retail-return-rate\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>average return rate<\/u><\/span><\/a><span data-color=\"transparent\"> in the ecommerce industry is 24.5%.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">The return rates for clothing items range from 25% to 40%<\/span><\/li>\n<li><span data-color=\"transparent\">62% of people say they\u2019re more likely to purchase an item online if they know they can return it for free.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">According to the NRF, the <\/span><a href=\"https:\/\/nrf.com\/research\/2024-consumer-returns-retail-industry\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>cost of returned items<\/u><\/span><\/a><span data-color=\"transparent\"> in the retail industry exceeded $890 billion in 2024.\u00a0\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">47% of online shoppers stop buying from a brand if they disagree with its return policy.<\/span><\/li>\n<\/ul>\n<h2>What does offering free returns mean for online businesses?<\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-379601\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-58.png\" alt=\"Hands holding a package on a table. A return label is on the top of the package. The person holds a pen in their right hand. \" width=\"1024\" height=\"512\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-58.png 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-58-300x150.png 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-58-768x384.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">The return rates in physical retail are consistently lower than for items purchased online. On average, shoppers return between 8 and 10% of items they purchase in-store, compared to 24.5% of products they buy online, while for certain items, the average return rate is even higher. \u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">This disparity reveals one of the key challenges online shoppers face when buying products online. It\u2019s difficult to understand whether the item you\u2019re interested in is the right size or if it meets your quality expectations when shopping online.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Even though <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/navigating-international-ecommerce-waters-tips-for-2025\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>new technologies<\/u><\/span><\/a><span data-color=\"transparent\">, such as AR, are making it easier for buyers to see what a product would look like once they put it on or place it in their homes, making these technologies an integral part of the shopping experience still requires substantial investment.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Consequently, sellers on online marketplaces face high return rates, which lower their revenue considerably and often hinder their expansion into international marketplaces.\u00a0On the other hand, returns policies and free returns remain as important as ever. <\/span><\/p>\n<p><span data-color=\"transparent\">They\u2019re still one of the most potent tools online sellers have at their disposal to establish trust and build loyalty as they enable sellers to clearly communicate delivery conditions, offer item replacements, or use other methods of limiting their costs.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">To make matters even more complex, <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/understanding-ebay-cassini-algorithm\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>eBay\u2019s Cassini<\/u><\/span><\/a><span data-color=\"transparent\"> and other internal search engines of online shopping platforms use free returns and <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/how-to-set-up-ebay-business-policies-for-2025\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>return policies<\/u><\/span><\/a><span data-color=\"transparent\"> as ranking factors.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Sellers on these online marketplaces risk lower visibility of their product listings if they exclude free returns from their offers.<\/span><\/p>\n<h2>The statistics behind free returns<\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-379608\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-54.png\" alt=\"A woman standing in her home. She is holding a smartphone in her hands. \" width=\"1024\" height=\"512\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-54.png 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-54-300x150.png 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-54-768x384.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Offering the option to return an item has become the norm for brick-and-mortar and online stores.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">However, due to a large volume of returns, offering customers the opportunity to return items they purchased from their online store for free is putting online sellers in a substantial financial bind.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Let\u2019s look at the figures that reveal the importance of free returns for ecommerce businesses and show the financial impact free returns can have on an online business:\u00a0<\/span><\/p>\n<ul>\n<li><span data-color=\"transparent\">According to an <\/span><a href=\"https:\/\/nrf.com\/research\/2024-consumer-returns-retail-industry\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>NRF study<\/u><\/span><\/a><span data-color=\"transparent\">, 76% of consumers consider free returns a crucial factor in their purchasing decisions.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">A <\/span><a href=\"https:\/\/www.ups.com\/assets\/resources\/media\/knowledge-center\/UPS_ReturnsExecutiveSummary.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>UPS study from 2025<\/u><\/span><\/a><span data-color=\"transparent\"> found that 88% of shoppers review a retailer\u2019s return policy during their shopping experience.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">The <\/span><a href=\"https:\/\/www.rithum.com\/resources\/returns-report\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Global Returns and Profit Report<\/u><\/span><\/a><span data-color=\"transparent\"> indicates that 41% of shoppers consider a brand\u2019s return policy before buying a product.\u00a0\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">DHL\u2019s <\/span><a href=\"https:\/\/www.dhl.com\/global-en\/microsites\/ec\/ecommerce-insights\/insights\/e-commerce-logistics\/2025-delivery-and-returns-trends.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>2025 Delivery and Returns Trends Report<\/u><\/span><\/a><span data-color=\"transparent\"> shows that 78% of shoppers in Europe won\u2019t purchase an item from an online seller if they don\u2019t trust the returns provider.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">The previously mentioned NRF study reveals that 93% of retailers see return fraud as an issue for their business.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">Sellers must spend up to <\/span><a href=\"https:\/\/www.nbcnews.com\/news\/us-news\/retail-returns-890-billion-problem-rcna183359\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>30% of the product\u2019s original price<\/u><\/span><\/a><span data-color=\"transparent\"> to process a free return.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">In the United States, <\/span><a href=\"https:\/\/www.theguardian.com\/environment\/2020\/jan\/02\/as-americans-send-back-millions-of-holiday-gifts-theres-a-hidden-environmental-cost\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>2.6 million tons of returned items<\/u><\/span><\/a><span data-color=\"transparent\"> end up in landfills every year.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">According to Gitnux, 67% of online shoppers are \u2018serial returners\u2019, meaning that they buy multiple versions of the same product with the intention of returning at least some of the items they ordered.\u00a0<\/span><\/li>\n<li><a href=\"https:\/\/www.mailmodo.com\/guides\/ecommerce-return-statistics\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Retailers lose $10.30 per $100<\/u><\/span><\/a><span data-color=\"transparent\"> of returned merchandise due to return fraud.\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-color=\"transparent\">These figures reflect the current state of affairs in the ecommerce industry. On the one hand, the overwhelming majority of people shopping online expect a free return to be part of the offer, while on the other, sellers on online platforms struggle to keep up with the costs of free returns.\u00a0<\/span><\/p>\n<h2>Are free returns still a necessity on online marketplaces?<\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-379997\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-57.png\" alt=\"\" width=\"1024\" height=\"512\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-57.png 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-57-300x150.png 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/tips-2025-1-57-768x384.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">At the start of the decade, free returns were a standard feature that most sellers on <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/how-to-get-noticed-by-customers-on-international-marketplaces\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>online marketplaces<\/u><\/span><\/a><span data-color=\"transparent\"> included in their offers.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">However, the rising costs are forcing sellers to rethink their returns policies in order to remain profitable. These costs involve much more than just the total return overhead, as sellers must hire additional staff to review, replace the original packaging, and restock each item their customers return.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Additionally, sellers on eBay and other vast online marketplaces may incur losses due to refunds, payment processing fees, restocking fees, administrative tasks, merchandise devaluation, issuing free return labels, and countless other factors.\u00a0\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Despite this, many online platforms, including eBay, still favor product listings that include free returns. Moreover, eBay\u2019s Cassini algorithm uses free returns as a ranking factor, meaning that offering free returns can <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/keyword-research-on-ebay\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>improve the visibility of the seller\u2019s listing<\/u><\/span><\/a><span data-color=\"transparent\"> and help increase their sales.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Also, free returns can help build trust and brand loyalty, since a considerable number of consumers claim they\u2019re more likely to buy from the same online store if they had a seamless return experience the first time they purchased an item from a seller.<\/span><\/p>\n<h2>The most common reasons online shoppers return products<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-379615\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/Frame-288-1.png\" alt=\"A person is takin an orange t-shirt out of the box. Multiple boxes and a laptop are all around it. \" width=\"1024\" height=\"512\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/Frame-288-1.png 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/Frame-288-1-300x150.png 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2025\/07\/Frame-288-1-768x384.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">It\u2019s clear that abandoning free returns altogether can be a costly mistake most ecommerce businesses can\u2019t afford, despite the high costs.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">So, even though offering free return shipping increases the number of items customers return and sometimes leads to exchange requests and even abuse, charging return shipping fees may not be the best path forward for most online retailers.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Instead, focusing on reducing the return rates may provide the perfect balance between <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/customer-experience-long-term-business-success-ecommerce\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>customer satisfaction<\/u><\/span><\/a><span data-color=\"transparent\"> and profitability. However, to achieve this, sellers must first understand why their customers choose to return the products they purchase.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Here\u2019s a quick overview of the common reasons for most returns:<\/span><\/p>\n<ul>\n<li><span data-color=\"transparent\">The customer ordered the wrong product or an incorrect product size.<\/span><\/li>\n<li><span data-color=\"transparent\">The retailer delivered the wrong product or an incorrect product size.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">The product wasn\u2019t delivered on time.<\/span><\/li>\n<li><span data-color=\"transparent\">Buyer\u2019s remorse.<\/span><\/li>\n<li><span data-color=\"transparent\">The product description was inaccurate.<\/span><\/li>\n<li><span data-color=\"transparent\">Fraud-related returns.<\/span><\/li>\n<\/ul>\n<p><span data-color=\"transparent\">Considering these factors while drafting your store\u2019s returns policy and creating product listings can considerably lower the return rates, as it allows you to include additional information potential buyers may need while making the purchasing decision.\u00a0<\/span><\/p>\n<h2>Understanding how free returns impact your online business<\/h2>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Paying attention to the advantages and disadvantages of free returns and how they may impact your online store will allow you to create a returns policy that best fits your business needs.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">For instance, returns usually spike after the <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/the-ecommerce-guide-to-the-2024-holiday-season\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>holiday season<\/u><\/span><\/a><span data-color=\"transparent\">, as millions return unwanted gifts, straining ecommerce businesses during this time frame. <\/span><\/p>\n<p><span data-color=\"transparent\">Seasonality isn\u2019t the only factor that can affect your online store\u2019s return rates. <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/the-best-ebay-listing-optimization-practices\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Listing localization<\/u><\/span><\/a><span data-color=\"transparent\"> (for cross-border sellers) or product category can also profoundly affect how frequently consumers return items they purchase from your store.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Moreover, a high level of transparency regarding the return policy increases the likelihood of sales, since figures indicate that 66% of online shoppers review a seller&#8217;s return policy before buying one of their products.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Approximately 20% of consumers who frequently shop online say that free returns don\u2019t affect their purchasing decisions.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Hence, it\u2019s paramount for ecommerce businesses to evaluate the positive and negative impact that offering free or paid returns can have on their revenue, customer loyalty, and ultimately brand image.\u00a0<\/span><\/p>\n<h2>Free returns as an online business growth driver<\/h2>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Opting to cover the costs of free returns can be a <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/practical-sales-strategy-tips-for-cross-border-sellers-on-ebay\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>viable business strategy<\/u><\/span><\/a><span data-color=\"transparent\">, especially for retailers who are still trying to establish themselves in a new niche or marketplace.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Aside from fostering repeated purchases, free returns also make shoppers more confident to place high-value orders, as they know they won\u2019t have to cover return fees if anything goes wrong, and that they\u2019ll get a full refund.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Consequently, a well-crafted returns policy can be a key growth driver, especially if the listings a business creates are properly localized and provide <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/ebay-listings-optimization-research\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>truthful descriptions of the seller\u2019s products<\/u><\/span><\/a><span data-color=\"transparent\">.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">What\u2019s more, many consumers consider free returns an integral part of the overall shopping experience, so making the entire shopping process from product discovery to returns seamless can have a major impact on a seller\u2019s success on an online marketplace.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">In addition, reducing the cart abandonment rate and a higher volume of customer data are also among the impactful benefits for businesses that opt to offer free returns.<\/span><\/p>\n<h2>The downsides of offering free returns<\/h2>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">The availability of free returns has opened doors for bracketing, wardrobing, and other costly trends that are driving the return rates up, creating logistical challenges and limiting the <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/improve-customer-experience-at-your-online-store-ebook\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>profitability of online stores<\/u><\/span><\/a><span data-color=\"transparent\">.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">A high volume of free returns also creates significant environmental challenges due to increased greenhouse gas emissions and waste levels.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Most importantly, online sellers face considerable costs as they must cover the expenses of return postage, processing labor, restocking, refunds, and inventory management, to name a few.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">These expenses are manageable as long as return rates are low. However, the average return rate in the ecommerce industry hovers just under 25%, and in some product categories, like footwear or clothing, it goes up to 40%.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">These statistics indicate that online sellers can lose nearly half of their sales due to free returns, as the returned items are usually resold at a fraction of their final sale price, which severely limits the store\u2019s profitability.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">However, the benefits of free returns far outweigh their downsides, especially for sellers on eBay and similar platforms that use free returns as a ranking factor for product listings.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Enabling customers to return items for free is a powerful brand loyalty tool that can help digital retailers offset the costs of free returns through repeated purchases, increasing order value, and creating an overall smooth shopping experience for consumers that they would recommend to others.<\/span><\/p>\n<h2>Growing your ecommerce business one free return at a time<\/h2>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Creating informative product listings, <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/does-using-ai-to-create-product-photos-for-an-ebay-store-pay-off\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>high-quality photos<\/u><\/span><\/a><span data-color=\"transparent\">, and videos of the products you add to your store, offering a simple exchange process for items purchased from your online store, and limiting the return window remain some of the most effective remedies for the rising costs of free returns.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">What\u2019s more, ensuring that your standard returns policy, listing all the fees, if any, and exceptions, is readily available, via QR codes or other methods, to all shoppers who come to your online store will enable you to set expectations from the start and avoid potential misunderstandings further down in the shopping process.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">In addition, you should entrust your store\u2019s free returns to a credible provider that consumers know and trust. Do you need help managing returns in your eBay store?\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/resources.webinterpret.com\/accelerate-now\/?_gl=1*1ywxzw2*_gcl_au*MTgzNzYyMzk0OC4xNzQ4MjUwMDA0*_ga*MTUxNTIxMjE4NC4xNzQwMDUzNjYy*_ga_KWWD0Y0CYM*czE3NTIxNDAzMDIkbzEzNCRnMSR0MTc1MjE0NTIzNiRqMzckbDAkaDE0MDYzMzIxNjE.#ebay\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Contact us<\/u><\/span><\/a><span data-color=\"transparent\"> to find out how Webinterpret\u2019s Returns solution can boost your store\u2019s performance on domestic and international marketplaces.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">About Webinterpret<\/span><\/p>\n<p><span data-color=\"transparent\">Webinterpret supports merchants selling on eBay.<\/span><\/p>\n<p><span data-color=\"transparent\">Our AI-based solutions enable more effective selling through automated listing\u00a0<\/span><a href=\"https:\/\/webinterpret.com\/en\/solutions\/localisation\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>localization<\/u><\/span><\/a><span data-color=\"transparent\">,\u00a0<\/span><a href=\"https:\/\/webinterpret.com\/en\/features\/advertising\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>advertising<\/u><\/span><\/a><span data-color=\"transparent\">, and\u00a0<\/span><a href=\"https:\/\/webinterpret.com\/en\/features\/returns\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>returns<\/u><\/span><\/a><span data-color=\"transparent\">\u00a0and ensure all products placed on EU markets are\u00a0<\/span><a href=\"https:\/\/webinterpret.com\/en\/solutions\/gpsr-compliance\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>GPSR-compliant<\/u><\/span><\/a><span data-color=\"transparent\">.<\/span><\/p>\n<p><span data-color=\"transparent\">By giving your international customers a full, end-to-end local shopping experience, Webinterpret improves your conversion and helps establish your business globally.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The decision to provide free returns has become a balancing act between meeting customer expectations and running a profitable business.\u00a0 The widespread availability of free returns has led to a higher percentage of returned items, increasing costs across the board, as retailers must inspect, repackage, and restock each returned product.\u00a0 Still, the research shows that as many as 88% of consumers across some of the largest ecommerce marketplaces, such as the United States, Germany, or the UK, expect free returns as a standard part of the offer.\u00a0 Consequently, whether or not to offer this option to customers has turned into a burning question that sellers on domestic and international online marketplaces must answer.\u00a0 This article will examine why free returns are still a major sales-driving force and whether completely excluding them from your offer is worth the risk. Key takeaways In 2025, the average return rate in the ecommerce industry is 24.5%.\u00a0 The return rates for clothing items range from 25% to 40% 62% of people say they\u2019re more likely to purchase an item online if they know they can return it for free.\u00a0 According to the NRF, the cost of returned items in the retail industry exceeded $890 billion in 2024.\u00a0\u00a0 47% of online shoppers stop buying from a brand if they disagree with its return policy. What does offering free returns mean for online businesses? The return rates in physical retail are consistently lower than for items purchased online. On average, shoppers return between 8 and 10% of items they purchase in-store, compared to 24.5% of products they buy online, while for certain items, the average return rate is even higher. \u00a0 This disparity reveals one of the key challenges online shoppers face when buying products online. It\u2019s difficult to understand whether the item you\u2019re interested in is the right size or if it meets your quality expectations when shopping online.\u00a0 Even though new technologies, such as AR, are making it easier for buyers to see what a product would look like once they put it on or place it in their homes, making these technologies an integral part of the shopping experience still requires substantial investment.\u00a0 Consequently, sellers on online marketplaces face high return rates, which lower their revenue considerably and often hinder their expansion into international marketplaces.\u00a0On the other hand, returns policies and free returns remain as important as ever. They\u2019re still one of the most potent tools online sellers have at their disposal to establish trust and build loyalty as they enable sellers to clearly communicate delivery conditions, offer item replacements, or use other methods of limiting their costs.\u00a0 To make matters even more complex, eBay\u2019s Cassini and other internal search engines of online shopping platforms use free returns and return policies as ranking factors.\u00a0 Sellers on these online marketplaces risk lower visibility of their product listings if they exclude free returns from their offers. The statistics behind free returns Offering the option to return an item has become the norm for brick-and-mortar and online stores.\u00a0 However, due to a large volume of returns, offering customers the opportunity to return items they purchased from their online store for free is putting online sellers in a substantial financial bind.\u00a0 Let\u2019s look at the figures that reveal the importance of free returns for ecommerce businesses and show the financial impact free returns can have on an online business:\u00a0 According to an NRF study, 76% of consumers consider free returns a crucial factor in their purchasing decisions.\u00a0 A UPS study from 2025 found that 88% of shoppers review a retailer\u2019s return policy during their shopping experience.\u00a0 The Global Returns and Profit Report indicates that 41% of shoppers consider a brand\u2019s return policy before buying a product.\u00a0\u00a0 DHL\u2019s 2025 Delivery and Returns Trends Report shows that 78% of shoppers in Europe won\u2019t purchase an item from an online seller if they don\u2019t trust the returns provider.\u00a0 The previously mentioned NRF study reveals that 93% of retailers see return fraud as an issue for their business.\u00a0 Sellers must spend up to 30% of the product\u2019s original price to process a free return.\u00a0 In the United States, 2.6 million tons of returned items end up in landfills every year.\u00a0 According to Gitnux, 67% of online shoppers are \u2018serial returners\u2019, meaning that they buy multiple versions of the same product with the intention of returning at least some of the items they ordered.\u00a0 Retailers lose $10.30 per $100 of returned merchandise due to return fraud.\u00a0 These figures reflect the current state of affairs in the ecommerce industry. On the one hand, the overwhelming majority of people shopping online expect a free return to be part of the offer, while on the other, sellers on online platforms struggle to keep up with the costs of free returns.\u00a0 Are free returns still a necessity on online marketplaces? At the start of the decade, free returns were a standard feature that most sellers on online marketplaces included in their offers.\u00a0 However, the rising costs are forcing sellers to rethink their returns policies in order to remain profitable. These costs involve much more than just the total return overhead, as sellers must hire additional staff to review, replace the original packaging, and restock each item their customers return.\u00a0 Additionally, sellers on eBay and other vast online marketplaces may incur losses due to refunds, payment processing fees, restocking fees, administrative tasks, merchandise devaluation, issuing free return labels, and countless other factors.\u00a0\u00a0 Despite this, many online platforms, including eBay, still favor product listings that include free returns. Moreover, eBay\u2019s Cassini algorithm uses free returns as a ranking factor, meaning that offering free returns can improve the visibility of the seller\u2019s listing and help increase their sales.\u00a0 Also, free returns can help build trust and brand loyalty, since a considerable number of consumers claim they\u2019re more likely to buy from the same online store if they had a seamless return experience the first time they purchased an item from a seller. The most common reasons online shoppers return<\/p>\n","protected":false},"author":65,"featured_media":379594,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[9676,9678,9682],"tags":[],"class_list":["post-379593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce-strategies","category-marketplace-trends","category-shipping-and-returns"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Using free returns to ensure your online store&#039;s success<\/title>\n<meta name=\"description\" content=\"Rising costs are prompting online sellers to rethink their free-return policies. 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