The Rising Cost of Ecommerce Returns. Average Return Rates, and how retailers can reduce them in 2026
E-commerce has reshaped market niches, but it has created new challenges for retailers in managing customer expectations and operations. Returns are cutting into your revenue. Discover the main reasons for returns and practical strategies to reduce them in your online store.
What is the average return rate for ecommerce?
According to the National Retail Federation (NRF), the e-commerce return rate rose from 16.9% in 2024 to a projected 19.3% for 2025. It is important to note that this metric is specific to e-commerce and varies significantly across different product categories and industries. For instance, apparel averages 26–40% returns, while electronics hover around 8–11%. Returns impose considerable costs on retailers through reverse shipping, warehouse restocking, and product value depreciation. Processing a single return costs between 20% and 65% of the item's original value, making returns management critical for sustainable profitability.
Top reasons of returns in e-commerce:
DealNews found that 65% of online shoppers said the item didn't fit and they face sizing problems with items.
Other reasons include:
- item was damaged or defective
- item didn’t match the description
- found a better price somewhere else
- buyer’s behavior and impulse purchasing
- ordered the wrong item
How to reduce item returns?
We have proposed solutions that address the most common return scenarios.
- Create detailed and clear product descriptions.
Document all components and specifications relevant to the selected model to ensure customers have a complete understanding before purchase.
- Enhance product card visualization by transitioning from 2D images to 3D product models.
Many companies face a common challenge: they lack inventory in stock and must source all photography from manufacturers, who often provide low-quality or insufficient images. In such cases, 3D models provide an effective solution. Customers can view any model in high quality from multiple angles. However, it is important to distinguish between high-polygon models (which are maximally accurate and detailed) and inexpensive alternatives created in minutes, often using AI. For complex machinery or furniture, professional 3D modeling using 3ds Max or BIM techniques is typically required to ensure accuracy and detail.
We partnered with a commercial kitchen equipment manufacturer whose products had over 20 configuration options. After launching the 3D catalog, companies experienced measurable improvements across multiple metrics: time spent per product page increased significantly, lead submissions rose by 30%, and return rates decreased noticeably. Discover how 3D catalogs contribute to company revenue growth and our cases.
Improve packaging quality and storage conditions. No customer wants to pay for a damaged or defective item. Ensure that products are adequately protected during handling, storage, and transportation to maintain their condition upon delivery.
Integrate augmented reality (AR) into your product catalogs to allow customers to visualize items in their own space before purchase, seeing exact dimensions and how products fit with their existing environment. This eliminates specification mismatches and dimensional confusion, the top drivers of returns in furniture and home decor categories, while increasing purchase confidence and reducing costly reverse logistics.
Today the competitive advantage belongs to retailers who act decisively to close the gap between customer expectations and product reality. By investing in comprehensive product information, advanced visualization technologies like 3D and AR, and quality control, retailers can align customer expectations with reality before purchase occurs.
Since 2015, we have helped companies reduce returns rates and increase sales by 40% with 3D catalogs. Schedule a consultation with our team to learn which approach best fits your product category and business goals.