What's a good return rate?

It depends heavily on your category. Third-party industry figures cite roughly 17% as the German e-commerce average and up to 50% in fashion. Your own trend line beats any external benchmark: same definition, same period, watched over time.

How do I calculate my return rate?

Most commonly: returns divided by orders in the same period, times one hundred. Alternatively, count at item level – items returned divided by items sold. The only rule that matters: pick one definition and stick to it. The ZackReturns dashboard tracks it automatically.

Do return fees actually reduce returns?

They can steer behaviour – curbing bracket ordering, for instance – but only if they're transparent before the purchase, and they can cost you conversion and trust. The statutory right of withdrawal has its own rules on return shipping costs. Test selectively and have the setup reviewed legally.

How fast can I lower my return rate?

There's no switch to flip. First measure cleanly and capture return reasons, then work the levers product by product – better size charts, exchange first, clearer product pages. Depending on your order volume, the effect shows up in the dashboard over weeks to months.

Fewer returns, more margin

Reduce your return rate: the levers that actually work.

The return rate is the number merchants most want to push down – and the one with the most guesswork around it. Here are the fundamentals: what the metric actually tells you, which industry benchmarks are worth a glance, and where to start – especially if you sell into Germany or the wider EU.

What is a return rate – and what counts as “normal”?

Your return rate is the share of orders that come back as returns. The most common formula: returns divided by orders in the same period, times one hundred. Some stores count at item level instead – both work, as long as you stick to one definition. Otherwise you're comparing apples to oranges, especially across seasons.

As for what's “normal”: third-party industry figures (EHI Retail Institute among others) offer a rough yardstick – market data, not ZackReturns numbers, and heavily category-dependent. If you're selling into Germany, build them into your planning as the baseline – a 17% rate there isn't an anomaly, it's the market:

Roughly 17% average return rate in German e-commerce
Up to 50% in fashion – some assortments even higher
Around €10 in costs per return: processing, shipping and loss in value

Lever 1: product data that leaves no questions open

Many returns are born on the product page, long before a return label is printed. When shoppers have to guess how something fits, feels or looks in real life, they order on spec – and orders placed on spec come back more often.

The good news: this lever is entirely in your hands.

Size charts with real centimetres, not just S/M/L – plus notes like “runs small”
Photos from several angles, on a model and in close-up – material, seams, texture
Short videos where movement matters – fabric, fit, function
Honest descriptions: better one lost sale than one extra return
Surface reviews with sizing feedback – shoppers trust other shoppers

Lever 2: know why items come back

Without return reasons you're optimising blind. “Too many returns” isn't a finding – “product X keeps coming back as ‘runs small’” is. Only once reasons are captured in a structured way can you tell which lever fits your store at all.

That's exactly what the return-rate dashboard in ZackReturns is built for: in your branded Returns Portal, shoppers pick a reason for every return, optionally with a photo upload. You see the patterns per product, return reason and period – and decide on real data instead of gut feeling.

Frequent “runs small” on one product → fix the size chart and add a fit note
Clusters of “arrived damaged” → check packaging and the shipping route
Lots of “not as described” → make the product page more honest
Spikes after a campaign → recalibrate expectations in your marketing

Lever 3: exchange first, refund second

Let's be honest: an exchange doesn't turn a return into a non-return. But it solves the shopper's actual problem – wrong size, wrong colour – and keeps the revenue in your store instead of refunding it. And a shopper who gets the right product on the second try is less likely to send that one back too.

The order of options in your Returns Portal decides the outcome: if the refund is the first and easiest choice, it gets chosen. The ZackReturns Returns Portal presents exchanges and Store Credit right next to the refund – optionally with a credit bonus as an incentive. With rules and automations you define once what gets offered when, and the rest runs on its own.

Levers 4 and 5: post-purchase communication – and fees, used with care

A lot is decided between checkout and unboxing. Realistic delivery estimates, proactive shipping updates and packaging that lands the product intact and looking the part take the disappointment out of the wait – and disappointed expectations are a classic return reason.

Which leaves fees. Some stores use them deliberately as a steering instrument – a return shipping fee, say, to discourage bracket ordering (buying three sizes to keep one). It can work, but it costs trust when shoppers only discover it inside the portal. If you test fees: disclose them before the purchase, apply them selectively rather than across the board – and mind the legal framework, because the statutory right of withdrawal has its own rules on who bears return shipping costs. In ZackReturns you model fees through rules, so they apply exactly where you want them to.

Frequently asked questions

What's a good return rate?: It depends heavily on your category. Third-party industry figures cite roughly 17% as the German e-commerce average and up to 50% in fashion. Your own trend line beats any external benchmark: same definition, same period, watched over time.
How do I calculate my return rate?: Most commonly: returns divided by orders in the same period, times one hundred. Alternatively, count at item level – items returned divided by items sold. The only rule that matters: pick one definition and stick to it. The ZackReturns dashboard tracks it automatically.
Do return fees actually reduce returns?: They can steer behaviour – curbing bracket ordering, for instance – but only if they're transparent before the purchase, and they can cost you conversion and trust. The statutory right of withdrawal has its own rules on return shipping costs. Test selectively and have the setup reviewed legally.
How fast can I lower my return rate?: There's no switch to flip. First measure cleanly and capture return reasons, then work the levers product by product – better size charts, exchange first, clearer product pages. Depending on your order volume, the effect shows up in the dashboard over weeks to months.

This page provides general information and is not legal advice. Whether and how you may pass on return shipping costs or fees should be reviewed legally for your store.