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Returns have long been an integral part of the e-commerce economy. They are no longer the exception to the rule, but a systematic aspect of how online shops operate.
Almost one in six online orders is eventually returned. The average return rate in e-commerce exceeds 9%, whilst for online clothing shops it stands at 18–20% or higher. These figures are not just statistics, but business economics, note the experts at Dropshipping Stelvel EOOD. A return always involves a chain of costs: logistics, warehouse processing, repackaging, markdown of the goods, and refunding the customer. Sometimes the goods can no longer be sold as new. These are direct losses.
Managers at Stelvel EOOD highlight a paradox that everyone involved in online business must accept: returns do not start in the warehouse. They start in the product listing. Buyers, however, do not perceive returns as a problem. That is why the key question for businesses today is not ‘how to get rid of returns?’, but ‘which products are returned most often and why?’
When you look at the data, the patterns become clear. If you run an online shop and want to optimise the returns process, this article on Stelvel EOOD is for you.
Clothing: a category where returns are almost built into the business model
Clothing and footwear are the undisputed leaders when it comes to returns. The average return rate in this category reaches 20%, and for footwear it exceeds 30%. In fact, one in three pairs may be returned to the retailer.
The reason lies not so much in the quality of the goods as in the very nature of online shopping. The main problem is size and how an item looks (fits) on a person ‘in real life’. This accounts for around 67% of all clothing returns. The most common reason given by customers is ‘too small’.
This is a systemic problem. Size charts vary between brands, and standardisation within the industry remains weak. The same customer might wear a size M from one brand and an L from another. In-store, this is resolved by trying items on. Online, it’s nothing but a gamble.
Consequently, customers are increasingly ordering several sizes of the same item at once, so they can choose the right one and return the rest. For the customer, this is a convenient service. For the shop, it means additional logistics and operational costs.
The problem is particularly noticeable in segments where sizes are less standardised, note STELVEL experts. For example, in the plus-size clothing category, the return rate reaches 34%. This shows just how poorly the market still handles the challenge of accurate sizing.
Electronics: fewer returns, but a higher cost per return
The situation in the electronics sector appears more stable. The average return rate here is around 12%. However, this category has a distinctive feature: each return is more expensive.
Electronics are generally more expensive, and once the packaging has been opened, the item cannot always be sold as new. Therefore, even a small percentage of returns can have a significant impact on profit margins.
The reasons for returns in the electronics sector differ from those in the fashion segment. Almost 43% of returns are due to defects or damage. A further 28% are due to compatibility issues, where the device does not work with the customer’s other systems or accessories.
A separate trend relates to the complexity of the product. The more complex the device, the higher the likelihood of a return. Simple accessories are returned relatively rarely. Complex systems, such as ‘smart home’ devices, show a significantly higher return rate. Often the reason is simple – the customer finds it harder to install or set up the system than they expected.
Homeware: the problem of scale
18.9% of returns are for homeware and furniture. The main reason is that the actual size or style does not match the customer’s expectations.
Of course, a well-rendered image or photograph of furniture in an interior can present the product in a favourable light and make it stand out. But a screen cannot convey the dimensions and scale of the buyer’s room. Therefore, the image that forms in their mind does not always match reality, according to STELVEL managers.
Statistics show that 58% of furniture returns are due to size issues: the purchase turns out to be ‘larger than expected’ or ‘does not fit the room’.
There is a second factor that is often underestimated: the complexity of assembly. Products requiring self-assembly are returned significantly more often. The customer may underestimate the complexity of the process and decide not to keep the purchase after delivery.
As a result, returns in this category are often not related to the quality of the product, but to the fact that the customer had imagined its use differently.
Cosmetics: the difficulty of choosing without testing
In the make-up sector, over half of all returns are due to issues with colour accuracy and the limitations of the online format. This is particularly true for foundation and concealers, according to experts at Dropshipping Stelvel EOOD. A colour that looks right on screen may appear different on the skin.
In skincare, the main reason for returns is allergic reactions or skin sensitivity. Even detailed descriptions of the ingredients cannot guarantee that no problems will arise upon use. Two-thirds of returns are due to subjective reasons – the fragrance turned out to be different from what the customer expected.
Why returns will remain a part of e-commerce
As with everything in life, the ability to avoid making mistakes when ordering goods online comes with experience. Over time, users gain a better understanding of how to choose products and which of their expectations regarding a purchase are more realistic.
The rise in returns is directly linked to the growth of online retail. It is important to bear in mind that new online shoppers return goods more frequently than regular customers.
There is another factor too – the purchasing channel. When a manufacturer (brand, company) sells directly, the return rate is usually lower. On marketplaces, the figure is higher. Products ordered via social media are returned most frequently. The logic is simple: such purchases are often impulsive and spontaneous, and the buyer knows too little about the product.
Stelvel EOOD helps sellers choose partners with whom the risk of returns is significantly lower. Stelvel EOOD’s dropshipping partners undergo a multi-stage vetting process based on internal supplier assessment criteria, including product quality consistency and the level of customer support.