Reduce returns

Reduce your online returns with 44%.

Fashion e-commerce return rates have settled around 30 to 40%. Sizing tools, AR fitting rooms, and stricter return policies have each been tried, and each plateaus quickly. Independent research into peer-to-peer return forwarding identifies a different ceiling: up to 44% of warehouse returns are structurally unnecessary. This page explains the data, the mechanism, and what it takes to apply.

44%

of warehouse returns can be eliminated, according to independently validated research

Eruguz, Van Heijst et al., Omega 128 (Elsevier), 2024

The starting point

Where return rates stand today.

Fashion return rates are not a temporary spike. They are a structural feature of online apparel sales, driven by sizing uncertainty, deliberate bracketing, and shopping behaviour that has been locked in for over a decade.

30–40%

of online fashion purchases in Europe are returned

Meteor Space, 2025

50%+

return rate on dresses in Germany and the UK

Statista, 2025

24.5%

online apparel return rate in the US, vs 8.7% in-store

NRF, 2024

€20–€40

average cost of processing a single return

Opensend, Shopify

Existing approaches

Why return reduction usually plateaus.

Most retailers have already tried at least one of the strategies below. Each helps at the margin. None of them get close to 44%, because they all aim at the same point in the funnel: the order. Once a return has been initiated, none of these tools have anything to offer.

Sizing tools and recommendations

Plug-ins that recommend size based on user height, weight, and prior orders. Effective for repeat customers, less effective for first-time buyers. Reduce returns by 4 to 8% in published case studies.

Hits a ceiling because sizing uncertainty is only one driver of returns.

AR and virtual fitting rooms

Augmented-reality try-on through a phone or webcam. Engaging for some categories, especially eyewear and accessories. Adoption in apparel is uneven and conversion impact is modest.

Adoption among first-time buyers is the bottleneck.

Paid returns and restocking fees

Charging for returns reduces volume by 5 to 15% but also reduces conversion. Many retailers report that customers switch to competitors who still offer free returns.

Trades return volume for cart abandonment. Net effect is often neutral.

Shorter return windows

Reducing the return window from 60 to 14 days cuts returns by 3 to 7%. The reduction is concentrated in lower-value items where the customer decided not to bother.

Pressures customer satisfaction, has a small absolute impact.

Combined, these tools can bring fashion returns down by perhaps 10 to 15%. The overwhelming majority of returns happen anyway, because the underlying behaviour, that consumers buy with the option to return, is structural.

A different leverage point

The return itself, not the order.

Most returned items are in resaleable condition. The conventional flow sends them back to a central warehouse, where they are inspected, repackaged, and shipped to the next buyer. Independent research published in Omega 128 (Elsevier) shows that a significant share of these warehouse round-trips are structurally unnecessary: the item could move directly from the returning customer to the next buyer, never entering the warehouse counted as a return at all.

The exact upper bound depends on assortment, geography, and order density. The published research identifies up to 44% under realistic conditions for fashion e-commerce.

44%

of warehouse returns can be eliminated through peer-to-peer return forwarding

Eruguz, Van Heijst et al., Omega 128 (Elsevier), 2024

Read the full research

What the live data shows

Numbers from a production system since February 2025.

Forwarding has been live in production at Kuyichi (a Dutch sustainable fashion brand) since February 2025. The numbers below come from that operation, refreshed daily.

43%

consumer adoption rate (sender side)

Of customers eligible to Forward their return, 43% choose Forwarding over a conventional refund.

65%

consumer adoption rate (buyer side)

Of buyers offered a Forwarded item at checkout, 65% select it.

21%

return rate on Forwarded items

Versus the roughly 38% industry average. Buyers who select Forwarded items return them at about half the typical rate.

4.8/5

consumer satisfaction rating

Across both senders and buyers, drawn from in-flow surveys.

Over 1,000 Forwards handled to date. All operating numbers are published openly.

See the open metrics

What the reduction means

The compounding effect of removing a warehouse touch.

Cutting 44% of warehouse returns is not just a cost line item. It changes the operational shape of returns processing.

€5 to €12 saved per Forwarded return

Inspection, repackaging, depreciation, and outbound logistics on the second leg are removed entirely.

310g of CO₂ saved per Forward

Mostly from eliminating the second outbound shipment. Methodology is ISO-aligned and audit-defensible for CSRD reporting.

Less working capital tied up in returns

Items that Forward never enter the returns queue. Capital releases faster, inventory turns improve.

Better positioned for upcoming regulation

Per-transaction CO₂ reporting supports CSRD, ESPR, and EPR documentation requirements arriving through 2026 and 2027.

What it takes to set up

Light integration, no warehouse changes.

Forwarding plugs into an existing return portal and order management system. The warehouse keeps doing what it was already doing for the share of returns that does not Forward. Implementation typically takes about a week.

Connects to existing return portal

Most major return portals are pre-integrated. Custom portals connect via REST API or our MCP server.

Works with any carrier

Forwarding generates the shipping label using the carriers you already use. No new carrier contracts required.

Live in about a week

Standard implementation runs about five working days, including order-management mapping, label-flow testing, and consumer-flow QA.

GDPR Article 28 compliant

Data processed only as needed for the return. Standard DPA available. Hosted in the EU on Google Cloud.

Get the numbers for your shop

What 44% would look like for your return volume.

Share a few details and we will come back with a specific calculation: expected adoption, savings range, and what implementation would involve on your stack. No sales call unless you ask for one.

We reply to every inquiry. Sometimes that reply is an honest 'this is not the right fit yet'.

Sources

Return rates and processing costs
National Retail Federation (2024 Happy Returns report), Statista, Shopify, Opensend, Meteor Space.
Independent research
Eruguz, A. S., Van Heijst, C., Van den Heuvel, W. et al. (2024). Peer-to-peer return forwarding in e-commerce. Omega, 128, 103127. https://doi.org/10.1016/j.omega.2024.103127
Live operational data
Kuyichi production data, February 2025 to present. Refreshed daily. See open metrics.
EU regulatory framework
European Commission documentation on CSRD, ESPR, EPR (textile extensions), and the Empowering Consumers Directive.

Last updated: April 2026