# How to reduce your online store's return rate

URL: https://ecomradar.co/en/returns-support/reduce-ecommerce-return-rate/
Updated: 2026-10-18 · Author: Robin Pautigny · Publisher: Radar Ecom (Refine)

> Returns are mostly decided before the purchase: a size guide with real measurements, on-model photos, customer reviews with photos. After the purchase, offer an exchange or store credit before a refund to keep the revenue, and analyze return reasons every month. In the US, the NRF estimates that 19.3% of online sales were returned in 2025.

## What the numbers say

The annual [NRF and Happy Returns report released on Oct 15, 2025](https://nrf.com/media-center/press-releases/consumers-expected-to-return-nearly-850-billion-in-merchandise-in-2025), based on 2,006 consumers and 358 e-commerce professionals in the US, gives useful benchmarks:

| Indicator (US, 2025) | Value |
| --- | --- |
| Share of total sales returned | 15.8% (down from 16.9% the previous year) |
| Share of online sales returned | About 19.3% |
| Consumers for whom free returns matter when buying | 82% |
| Consumers more likely to choose an instant refund or exchange | 76% |
| Consumers less likely to buy again after a poor return | 71% |
| Share of returns considered fraudulent | 9% |

These are US figures: they give an order of magnitude, not a benchmark for your store. The only number that really matters is your own return rate, product by product.

Two takeaways: returns are part of the purchase decision (so you can't just make them painful), and a badly handled return also costs you the next order.

## Before the purchase: prevent the return

Most returns come from a gap between what the customer pictured and what they receive. Close that gap on the product page.

### 1. A size guide with real measurements

Give the garment's flat measurements (chest, length, waist) in centimeters or inches, not just an S/M/L conversion. State the model's height and measurements, and say whether the item runs small or large when your returns show it.

### 2. On-model photos from several angles

Front, back, side, a fabric close-up and, if possible, a video. Customers should be able to judge the cut, length and drape without guessing.

### 3. Customer reviews with photos

Photos from other customers show the product in real life. An app like **Loox**, built for Shopify, is designed around this: according to [its website](https://loox.app/), it collects photos and videos with well-timed requests and incentives. See our [Judge.me vs Loox](/en/reviews/judge-me-vs-loox/) comparison.

## After the purchase: keep the revenue

A return doesn't have to be a refund. The goal is to turn part of your returns into exchanges or store credit.

### 4. Offer the exchange first

In the return flow, put the exchange (another size, color or product) before the refund. Shopify returns tools do this natively:

- **Loop** steers customers toward exchanges or store credit instead of refunds. According to [its website](https://www.loopreturns.com/), it was built for Shopify and is now available on other platforms through a custom implementation.
- **ReturnGO** lets customers exchange directly in the store with "Shop Now" incentives, and lets you tailor complex return policy rules, according to [its website](https://returngo.ai/).

The detailed comparison is in our [Loop vs ReturnGO](/en/returns-support/loop-vs-returngo/) head-to-head.

### 5. Make store credit more attractive than a refund

Offer a small bonus when customers choose store credit instead of a refund, for example a few extra dollars. The money stays in your store and the customer leaves with a product that fits. Remember the NRF figure: 76% of consumers prefer an instant option, so credit that's available right away is more likely to be accepted.

### 6. Analyze return reasons every month

Require a reason for every return request (too small, too large, doesn't match the photo, defect, delivery) and review them product by product every month. A product that keeps coming back as "runs small" needs a size guide fix. A product returned as "different from the photo" needs new photos. This is what connects the post-purchase levers to the pre-purchase ones.

## What about fraud?

The NRF estimates that 9% of US returns are fraudulent: overstated quantities, empty boxes, substituted items. Without tightening your policy for everyone, keep clear rules (time window, product condition) and inspect parcels on arrival.

## Go further

- Our roundup of the [best Shopify returns apps](/en/returns-support/best-shopify-returns-apps/).
- The [Loop vs ReturnGO](/en/returns-support/loop-vs-returngo/) head-to-head.
- The [best Shopify review apps](/en/reviews/best-shopify-review-apps/), for lever #3.

## FAQ

**What is the average e-commerce return rate?**

According to the NRF and Happy Returns report released on Oct 15, 2025, returns account for 15.8% of annual US retail sales and about 19.3% of online sales. These figures cover the US market.

**Do customers check the return policy before buying?**

Yes: in the same study, 82% of consumers say free returns are a major purchase consideration, and 71% say they are less likely to shop with a retailer again after a poor returns experience.

**Which tool can offer an exchange instead of a refund?**

On Shopify, Loop steers customers toward exchanges or store credit instead of refunds, and ReturnGO lets customers exchange directly in the store with Shop Now incentives.

**How do I get reviews with photos?**

A review app like Loox, built for Shopify, collects photos and videos with well-timed requests and incentives.