The eCommerce landscape is evolving rapidly, and returns management has emerged as a critical component of success. In 2024, retailers faced significant challenges in handling returns, with merchandise returns reaching a staggering $743 billion in 2023. As the peak shopping season concludes, merchants are now dealing with a surge of post-holiday returns that can extend well into the new year.
Why is mastering returns management crucial for eCommerce success in 2025? Here are four key reasons:
1. Economic Uncertainty Demands Better Cost Management
In today’s uncertain economic climate, cost management has become a top priority for retailers. Despite the challenges, eCommerce sales are expected to grow significantly, accounting for 19.8% of total sales in 2025—marking the fastest growth since 2021, according to eMarketer.
This growth creates a dual mandate for businesses: they must control costs while delivering exceptional customer experiences. Streamlining returns processes through automation offers a way to achieve both. Efficient systems can cut costs, improve operational efficiency, and help retain customer loyalty, positioning businesses for sustainable growth.
2. Shifts in Consumer Behavior Are Increasing Returns
Consumer shopping habits are evolving, leading to more frequent returns. A notable example is the rise of “bracketing,” where 87% of shoppers intentionally order multiple sizes or styles to try at home and return what doesn’t fit their needs, according to Retail Dive.
This trend poses challenges for inventory management, margin predictions, and operational workflows. The apparel, footwear, and accessories categories are particularly impacted, with 64% of consumers reporting higher return rates in these segments. Retailers must be prepared to handle these shifts effectively to maintain profitability and customer satisfaction.
3. Balancing Return Fees and Customer Loyalty
As retailers explore charging return fees to offset costs, they face a delicate balancing act. While some customers are willing to pay a reasonable fee if the return process is seamless, others may view such fees negatively, jeopardizing loyalty.
Retailers must carefully assess their audience’s price sensitivity and design policies that align with customer expectations. Striking the right balance can ensure cost management without alienating shoppers.
4. Tackling Returns Fraud and Policy Abuse
Returns fraud and policy abuse are growing concerns. According to research by Loop Returns, 53% of US merchants identify returns fraud as a major challenge. This issue has prompted many retailers to tighten eligibility criteria, require detailed information at checkout, and create tiered returns policies for loyal customers.
Loyalty programs offering more lenient return terms to repeat customers can effectively deter fraud while enhancing the shopping experience for trustworthy shoppers. These strategies enable retailers to protect their margins without compromising customer relationships.
BGL’s Expertise in Returns Management
At Best Global Logistics (BGL), we understand the complexities of managing returns, especially during peak seasons. Our tailored solutions focus on cost-effective, customer-centric returns processes. By leveraging automation and data analytics, we empower retailers to:
- Navigate economic uncertainties
- Adapt to evolving consumer behaviors
- Implement robust policies to prevent fraud and abuse
With the peak season winding down, now is the perfect time to reassess your returns strategy. Partnering with an experienced logistics provider like BGL ensures your business is equipped to optimize returns processes, enhance customer experiences, and maintain operational efficiency.
Facing Returns Challenges?
Contact BGL today for a comprehensive supply chain consultation. Together, we can turn returns management into a strategic advantage for your eCommerce business in 2025.