Returns Best Practice: Should We Be Creating Bigger Barriers?

Due to the very nature of eCommerce, returns are an inevitability. What separates high-performing brands from underperformers is not the existence of returns, but how they handle them. Over the past five years, we’ve all witnessed first-hand how some larger retailers are responding to high volumes of returns and in turn, their mounting costs by erecting barriers: charging return fees, suspending accounts of frequent returners, tightening return windows, or limiting who can return.

But are these tactics best practice? Or do they have a lasting impact on customer experience, trust, and long-term loyalty?

At SCEND, we believe in smarter reverse logistics, not harsher walls. Throughout this blog, we explore the risks of over-restricting returns and how partnering with a 3PL like SCEND can help you deliver a frictionless returns journey that boosts satisfaction and loyalty rates rather than chasing away potential customers.

The rise of returns friction and its risks.

Charging for returns: best practice or unnecessary barrier

As return volumes continue to soar, more and more retailers are shifting part of the burden onto the customers themselves. Charging them for return shipping or imposing restocking fees. In the UK, many brands have begun charging return fees for online returns (while maintaining free in-store returns). This could be seen as a way in which to return customers to the high street, making what has become so accessible online, more accessible in person. However, recent data has indicated that this simply isn’t the case.

Nearly 60% of online shoppers rank free returns as the most important factor in a good returns policy, which is even ahead of speedy refunds. When retailers introduce return charges, customers often express backlash.

Though it has been proven that charging for online returns will reduce the overall volume, it can have a lasting impact on brand reputation, discourage first-time buyers, or push shoppers toward competitors with more generous policies.

Before implementing barriers such as charging for returns, a brand should evaluate the pros and cons of this. And explore different avenues in which you can reduce returns or limit the impact in which returns have on your business.

Cancelling accounts, or blocking returns.

Some retailers respond to frequent returns from customers by suspending or deleting accounts or limiting their access to returns. This is something that has been explored more recently by some larger retailers. However, it has not come without backlash. The question arises over how many returns are ‘too many’ when it comes to online fashion, as without access to fitting rooms, customers are unable to access quality information on sizing, fittings, accurate colour representation, and so much more. Meaning that returns are often a necessary aspect of the purchase journey.  

Due to this knowledge, some retailers have quietly introduced “fair-use” return policies: e.g. retain a minimum spend or number of items before a return becomes free, or refuse returns from users who exceed a certain threshold.

But such policies come with serious trade-offs. When customers feel penalised or distrusted, their trust in the merchant can erode. As one analysis put it, restricting long-standing lenient return policies can reduce consumer trust, purchase intention, and word-of-mouth unless carefully explained.

The dangers of creating friction.

Though, as we’ve already stated, erecting certain barriers within the returns process can alleviate some of the stress which comes with elevated returns, however, new stresses can occur.

Creating friction within the returns process can have lasting negative impacts on the post-purchase journey, and up to 29% of online consumers have stated that they would be unlikely to repeat purchase from your brand if they have a poor returns experience.

It remains a fact that returns are part of the customer journey! Therefore, if you make that stage difficult, you risk turning satisfied buyers into disgruntled critics. Meanwhile, in a competitive landscape, shoppers will gravitate to brands that make returns seamless and painless.

Why bigger barriers are not necessarily better

1. They erode trust and relationship equity

There is no better asset to any business than trust, however, trust can be fragile. Suddenly implementing price hikes, changes in policy, and charging for returns can ultimately break that trust. And when trust is broken, it can be difficult to repair.

The best way to combat this, if you’re sure that charging for returns is the best way to alleviate returns pressure is to ensure you are transparent with your customers, give a legitimate reason for your decision and utilise it as a test period to note the impact that this change has and give customers a time frame in which they can expect change and when the evaluations of the change will be made.

This way, you can implement changes to your returns policy to see the impact on your business without blindsiding customers, resulting in a potential relationship breakdown, and ultimately sending them over to a competitor.

2. Barriers can reduce conversion, not only returns

One of the elements in which you should weigh up is which is key to your business model. Reducing returns, or increasing conversions. From recent key information, it is evident that a high percentage of online shoppers will check a return policy before completing a purchase. With over 65% of online consumers checking and making an informed purchase decision based on what they found within these returns policies, it is imperative that the policy is both fair and clear.

When looking into your return policy, if they see a restocking fee, a narrow window, or a complicated returns process, they may abandon the purchase altogether. In other words, increasing barriers can reduce net sales, not just reduce returns.

3. They invite negative word-of-mouth

Having a potentially controversial returns policy can invite negativity. And in a world where consumers are turning to social media to relay their negative experiences, this can result in a widespread campaign which denotes your business in a negative light. Having videos go viral negatively can directly impact your customers’ views and your overall sales.

4. Harsh return policies can incite soft “quitting”

Though you might not see the impact of return barriers straight away, some customers may decide to quietly or softly move away from your brand. This can look like a reduction in order value from previously loyal customers. Or more customers purchasing “lower risk” items, such as clothing which is less likely to have an incorrect fit, or accessories.

This soft quitting or shadow churn can be hard to pick up on. However, over a period of time can have a significant negative impact on your sales, revenue and lifetime value.

5. They often don’t stop returns

Though some barriers might reduce returns marginally, the impact that these types of ‘solutions’ have on returns rates is often rather insignificant.  The impact is limited because consumer behaviour, specifically “buy now, pay later” shopping, is deeply ingrained. In fashion, many customers will continue to buy multiple sizes regardless of risk, and charge the fees to their lender of choice.

Therefore, the cost of increased friction may outweigh the marginal reduction in returns.

A better approach: strategic facilitation, not deterrence

Instead of building bigger walls, many high-performing retailers aim to streamline the returns journey. Here’s how:

1. Use data and analytics to target friction smartly

Not all returns are equal. With data, you can identify patterns:

• Customers who always return identical SKU types
• High-value or high-risk categories
• Customers with unusual return frequency

With that insight, you can deploy graduated friction (e.g. exceptions, additional checks) rather than blanket restrictions.

2. Tiered customer segmentation

You might offer more generous return terms to loyalty members or high-LTV customers, while applying more scrutiny or conditional returns to new or borderline accounts.

The segmentation should be transparent and data-driven.

3. Use incentives over penalties

Rather than penalising returns, you can incentivise alternatives. For instance:

• Offer store credit or exchanges instead of a full refund
• Offer prepaid return labels only if the return reason is a product defect
• Encourage in-store returns or drop-off points to reduce transport cost

Incentives feel proactive rather than punitive, and many customers will choose the less costly route voluntarily.

4. Focus on the root cause: fit, description, and expectation alignment

A significant proportion of returns stem from size, fit, or mismatch of expectations. Research shows that about 25% of returns are due to incorrect item delivery, and another 20% result from damages or mismatches.

By improving product detail pages, visual try-ons, size recommendation engines, and pre-shipment QA, you reduce the need for returns in the first place.

5. Transparent communication & consumer education

If you do need to adjust your return policy, communicate it clearly and openly, explaining why (e.g. rising logistics costs, environmental concerns), which helps buffer negative reactions.

Similarly, make the returns policy obvious on product pages and at checkout, so there are no surprises post-purchase.

6. Speed, convenience, and visibility

Customers deeply value three things in returns: ease, speed, and communication.

• Offer an online returns portal
• Provide pre-paid or paperless labels
• Allow multiple drop-off or collection options
• Give live tracking and status updates

All of this reduces friction (and guilt) and helps maintain trust.

Does making returns easier really increase returns?

This is a common objection.

The concern: “If we make returns effortless, won’t customers abuse it and return more?” The evidence suggests not, or at least not proportionally.

• Research shows that while ease of returns may marginally increase return volume, the net effect is often positive for revenue, loyalty, and brand trust.
• A smoother returns experience can reduce “doubt returns” (customers who return out of uncertainty or inconvenience) and boost confidence in purchases.
• Brands with generous, frictionless returns often see higher repeat purchase rates and brand advocacy.
• The difference lies in how friction is managed: intelligent friction (targeted, data-driven) rather than blanket restrictions.

In other words: making returns easier doesn’t guarantee runaway returns, but it does improve customer experience and retention.

Practical recommendations for retailers (with or without a 3PL)

Here’s a checklist of actions retail brands can take to balance returns discipline and customer experience:

Why SCEND’s returns-first approach is future-facing

In today's competitive landscape, a great returns policy is not a cost liability; it's a differentiator.

By leaning into frictionless returns, brands send a strong signal: we trust our product, we value our customers, and we're confident in the experience we deliver.

When you partner with SCEND, you're not just outsourcing returns; you're investing in a customer-first reverse logistics strategy. You free your team to focus on growth, while we ensure your returns system is robust, efficient, and brand-aligned.

If you're considering tightening your returns policy to protect your margins, pause. First, ask: could better processing, smarter tech, and a 3PL partnership achieve a better outcome, preserving customer trust while controlling costs?

After all, the best barrier is not a wall, it’s a well-designed path.

Ready to elevate your returns, speak to a member of the SCEND team today.

https://scend.com/contact/