Best practices for e-commerce returns handling

Best practices for e-commerce returns handling

With return rates reaching 30%, strong ecommerce return practices are essential. Clear policies, self-service portals, instant refunds, flexible outcomes, automated communication, and reducing preventable returns improve customer experience, build trust, and protect long-term revenue while keeping operations efficient.

Return handling is here to stay. The average return rate can reach up to 30% for some retailers, with numbers often spiking during peak shopping periods. That’s a big part of running an online store, and how you deal with it matters.

Understanding and applying strong ecommerce returns best practices is no longer optional. How you structure your customer return process, communicate with shoppers, and manage refunds or exchanges can directly impact loyalty, repeat purchases, and overall brand perception. In this blog, we’ll explore what are the best practices for handling e-commerce returns and exchanges, and how businesses can turn returns into a smoother, more positive experience for everyone involved.

Best practices for e-commerce refunds and returns

1. Make your returns policy clear and easy to find

A customer’s experience with returns starts long before they actually send something back. If they can’t quickly find or understand your policy, frustration builds before the process even begins.

Write your policy in plain language and place it where customers expect it, product pages, checkout, confirmation emails, and your website footer. Explain timelines, eligibility, refund methods, and shipping expectations clearly. Avoid legal-heavy jargon language and focus on being direct and clear.

Creating a clear policy is one of the most important returns best practices, as it sets expectations early and prevents confusion that can lead to frustrations down the line. When customers know what to expect, the entire process runs more smoothly for everyone involved.

2. Offer a self-service returns portal

Customers don’t want to email support just to start a return. Offering a self-service portal gives them a straightforward way to initiate refunds or exchanges in their own time, without needing assistance.

Solutions like Refundid provide a place where shoppers can select items, submit requests, and follow clear next steps. On top of that, instant refunds mean customers can receive their money in under 30 seconds, even before sending the item back, with zero risk to your business. This keeps the customer return process moving and removes a major frustration for shoppers.

Including fast refunds alongside self-service tools is often highlighted in returns management tips from ecommerce experts and reflects strong ecommerce returns best practices. It gives customers more control and helps businesses handle returns in a way that encourages repeat purchases rather than losing the sale.

3. Offer flexible outcomes, not just refunds

Not every return has to end in money leaving your business. 

Consider providing:

  • Exchanges for alternative sizes or products
  • Store credit for future purchases
  • Instant refund options where appropriate

This flexibility supports best practices for e-commerce refunds and returns by focusing on solutions rather than simply processing transactions. Customers feel heard and supported, and businesses maintain stronger long-term value from each and every customer.

4. Automate communication to keep customers informed

One of the easiest ways to improve the customer experience is to take uncertainty out of the returns journey. When shoppers don’t know what’s happening, they contact support, chase updates and often assume the worst. Automating communication removes that guesswork and keeps your ecommerce returns process running smoothly without adding extra manual work.

Setting up automated notifications means customers are updated at key moments, when their return request is submitted, when the item is received, and when their refund or exchange is processed. These updates reassure shoppers that everything is moving forward. It’s a simple step, but one that consistently shows up in ecommerce returns best practices because it improves trust while saving time.

e-commerce returns handling

Reduce returns before they happen

Handling returns well is important, but preventing unnecessary ones is even better. Small improvements across the buying journey can significantly lower return rates.

Focus on:

  • Accurate product descriptions: Be honest and thorough in your product copy. Highlight key features, materials, and any limitations so customers know exactly what they’re buying.
  • Clear sizing and fit guidance: Include detailed sizing charts, fit notes, and tips to help shoppers pick the right size. This is especially important for clothing, shoes, and wearable items.
  • High-quality images from multiple angles: Show your product from different perspectives, including close-ups and lifestyle shots. Customers want to “see and feel” the product before committing to a purchase.
  • Careful packaging: Even the best product can be returned if it arrives damaged. Use sturdy, protective packaging to prevent damage during shipping and ensure the product reaches the customer in perfect condition.

Returns are just part of running an online store, but how they’re handled can make a big difference to your customers. Following proven ecommerce returns best practices helps turn what could be a frustrating experience into a smooth, positive one.

Using a tool like Refundid makes this even easier. Customers can submit returns, select items for refund or exchange, and access prepaid return labels, all in one self-service portal. Instant refunds mean shoppers can get their money back in under 30 seconds, even before the item is returned, giving them confidence and reducing the number of support questions your team has to handle.

Ilan Kessler is the Co-founder & CTO of Refundid, an e-commerce returns platform providing instant refunds and exchanges for shoppers. Together with the Refundid team, we bring deep software engineering expertise and a strong focus on building technology that enhances customer confidence in online shopping.

Insights

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How to reduce return processing costs for my business

Returns can drain profits if poorly managed. Reduce volumes with clearer product information, better quality control, and strong packaging. Streamline processing through automation and self-service tools like Refundid, adjust policies to encourage exchanges, and use data insights to lower costs while improving customer experience.

Best practices for e-commerce returns handling

With return rates reaching 30%, strong ecommerce return practices are essential. Clear policies, self-service portals, instant refunds, flexible outcomes, automated communication, and reducing preventable returns improve customer experience, build trust, and protect long-term revenue while keeping operations efficient.

How to automate Shopify returns processing?

Automating Shopify returns reduces manual admin, improves customer experience, and speeds up refunds. Using Shopify’s self-serve tools or platforms like Refundid helps streamline requests, apply rules, issue refunds faster, and generate insights that improve operations and customer satisfaction.

Top return management platforms for US retailers

High online return rates make returns management critical. This guide compares leading ecommerce returns software and explains why platforms like Refundid help boost efficiency, retain revenue, and keep customers satisfied.

Real-time tracking solutions for ecommerce returns

This article explains how real-time tracking streamlines ecommerce returns and why solutions like Refundid improve visibility, efficiency, and customer trust for Australian online retailers.

Transfer pricing for US returns: what retailers need to know

U.S. tariff changes mean returns now require accurate transfer pricing, creating new tax and compliance risks for international retailers. Refundid automates this by applying Shopify transfer prices to every return, ensuring correct customs declarations, avoiding penalties, and keeping cross-border returns simple and compliant.

What features should a returns management platform have?

A great returns management system makes returns simple, fast, and transparent. The best platforms automate approvals, refunds, and exchanges, offer self-service portals, update inventory in real time, and provide clear communication.

How to improve customer satisfaction with returns process

A smooth return process builds trust and keeps customers loyal. Make returns easy, communicate clearly, and issue fast refunds with automation tools like Refundid. By reducing friction and turning returns into a positive experience, you improve satisfaction, cut errors, and bring shoppers back.

How to automate refund processing for online stores

Manual refunds create problems your business doesn’t need — errors, delays, frustrated customers, and wasted time. The fix is simple: automate your returns process. With the right system in place, refunds become faster, more accurate, and much easier for both your customers and your team.

How to offer immediate product exchanges to customers

Immediate exchanges give customers a smoother experience, build loyalty, and even help reduce returns. By making it quick and easy to swap items, you turn a potential frustration into a positive moment for your customer.

Best way to process quick refunds for customers

Slow refunds hurt loyalty. Fast refunds set you apart. With Refundid, you can offer instant refunds and see customers repurchase up to three times faster. The key is a simple, quick, transparent process — and here’s how to make it happen.

Best returns management system for Australian e-commerce

We’ve rounded up the best product returns management software to help you streamline your returns process, cut friction, and keep more customers coming back.

Compare e-commerce return integrations for Australian businesses

We break down how four major ecommerce platforms — Shopify, BigCommerce, WooCommerce and Magento — compare on returns, so you know exactly what you’re getting before choosing the best platform for your store.

Top 6 Shopify Returns Apps in 2026

In this guide, we’re taking a look at the top 6 Shopify returns apps in 2026. We’ll break down what makes each one unique, who they’re best for, and how they can help your store save time, reduce headaches, and even boost revenue.

Shopify Returns App vs Shopify Native Returns: What Growing Brands Need to Know

Compare Shopify’s native returns with a full returns app. See where Shopify’s tool works, where it falls short, and when brands should upgrade to Refundid.

How Does Refundid Make Money?

Refundid makes money through retailer fees, with optional subscriptions and small penalties that encourage good return behaviour, always free for customers who play by the rules.

Refundid iPhone with all the BNPL apps installed

How does Refundid work with BNPL?

Refundid can be used even if you purchased with a "Buy Now Pay Later" service like Afterpay, Zip and Klarna. Find out how.

Refundid Featured on Channel 7 Sunrise | Ilan Kessler on Instant Refunds

Refundid was featured on Channel 7’s Sunrise, where Co-Founder & CTO Ilan Kessler shared how instant refunds are transforming the way Australians shop and return online orders.

How to Integrate a Returns Portal and Why It Matters in 2025

In 2025 integrating a returns portal streamlines operations, keeps data accurate, and delivers a seamless returns experience with Refundid’s integrations.

How to Do Shopify Returns in 2025 (Without Overengineering)

Shopify returns in 2025 don’t need to be complicated. Start small with Shopify’s free Self-Serve Returns, then upgrade to a full returns platform when your volume and customer needs demand it. Here’s how to keep things simple until you’re ready to scale.

Refundid | ReturnGO Integration

Partnership Announcement: ReturnGO partners can now offer their customers the option of receiving an instant refund with Refundid.

Ecommerce returns best practices for 2023

Having a solid returns policy is essential to maintaining a good reputation, growing brand loyalty and increasing repurchase rates.

VRG GRL: Returns, Refunds and Refundid

Welcome to our second Refundid partnered Q&A series with VRG GRL's Co-CEO Cale Suesskow.

Refunds & Returns Insights: Every eCommerce Business Should See

Take a look at these customer insights that showcase just how important quick and easy returns can be for your business.

Case Study: Culture Kings

Learn how instant refunds helped boost Culture King's sales and performance metrics

Meet Refundid's CEO & Co-founder, Brad Karney

Brad is an avid Liverpool F.C. supporter and ecommerce enthusiast, before co-founding Refundid he was… can you guess?

5 Brands with Superior Customer-Centric Returns Policies

Customer service is king! Customers expect world-class customer service throughout the entire order life cycle when shopping online.

Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Learn how you can maximise retention, loyalty, and active customer numbers through your returns policy

Best practices for e-commerce returns handling

Best practices for e-commerce returns handling

With return rates reaching 30%, strong ecommerce return practices are essential. Clear policies, self-service portals, instant refunds, flexible outcomes, automated communication, and reducing preventable returns improve customer experience, build trust, and protect long-term revenue while keeping operations efficient.

Return handling is here to stay. The average return rate can reach up to 30% for some retailers, with numbers often spiking during peak shopping periods. That’s a big part of running an online store, and how you deal with it matters.

Understanding and applying strong ecommerce returns best practices is no longer optional. How you structure your customer return process, communicate with shoppers, and manage refunds or exchanges can directly impact loyalty, repeat purchases, and overall brand perception. In this blog, we’ll explore what are the best practices for handling e-commerce returns and exchanges, and how businesses can turn returns into a smoother, more positive experience for everyone involved.

Best practices for e-commerce refunds and returns

1. Make your returns policy clear and easy to find

A customer’s experience with returns starts long before they actually send something back. If they can’t quickly find or understand your policy, frustration builds before the process even begins.

Write your policy in plain language and place it where customers expect it, product pages, checkout, confirmation emails, and your website footer. Explain timelines, eligibility, refund methods, and shipping expectations clearly. Avoid legal-heavy jargon language and focus on being direct and clear.

Creating a clear policy is one of the most important returns best practices, as it sets expectations early and prevents confusion that can lead to frustrations down the line. When customers know what to expect, the entire process runs more smoothly for everyone involved.

2. Offer a self-service returns portal

Customers don’t want to email support just to start a return. Offering a self-service portal gives them a straightforward way to initiate refunds or exchanges in their own time, without needing assistance.

Solutions like Refundid provide a place where shoppers can select items, submit requests, and follow clear next steps. On top of that, instant refunds mean customers can receive their money in under 30 seconds, even before sending the item back, with zero risk to your business. This keeps the customer return process moving and removes a major frustration for shoppers.

Including fast refunds alongside self-service tools is often highlighted in returns management tips from ecommerce experts and reflects strong ecommerce returns best practices. It gives customers more control and helps businesses handle returns in a way that encourages repeat purchases rather than losing the sale.

3. Offer flexible outcomes, not just refunds

Not every return has to end in money leaving your business. 

Consider providing:

  • Exchanges for alternative sizes or products
  • Store credit for future purchases
  • Instant refund options where appropriate

This flexibility supports best practices for e-commerce refunds and returns by focusing on solutions rather than simply processing transactions. Customers feel heard and supported, and businesses maintain stronger long-term value from each and every customer.

4. Automate communication to keep customers informed

One of the easiest ways to improve the customer experience is to take uncertainty out of the returns journey. When shoppers don’t know what’s happening, they contact support, chase updates and often assume the worst. Automating communication removes that guesswork and keeps your ecommerce returns process running smoothly without adding extra manual work.

Setting up automated notifications means customers are updated at key moments, when their return request is submitted, when the item is received, and when their refund or exchange is processed. These updates reassure shoppers that everything is moving forward. It’s a simple step, but one that consistently shows up in ecommerce returns best practices because it improves trust while saving time.

e-commerce returns handling

Reduce returns before they happen

Handling returns well is important, but preventing unnecessary ones is even better. Small improvements across the buying journey can significantly lower return rates.

Focus on:

  • Accurate product descriptions: Be honest and thorough in your product copy. Highlight key features, materials, and any limitations so customers know exactly what they’re buying.
  • Clear sizing and fit guidance: Include detailed sizing charts, fit notes, and tips to help shoppers pick the right size. This is especially important for clothing, shoes, and wearable items.
  • High-quality images from multiple angles: Show your product from different perspectives, including close-ups and lifestyle shots. Customers want to “see and feel” the product before committing to a purchase.
  • Careful packaging: Even the best product can be returned if it arrives damaged. Use sturdy, protective packaging to prevent damage during shipping and ensure the product reaches the customer in perfect condition.

Returns are just part of running an online store, but how they’re handled can make a big difference to your customers. Following proven ecommerce returns best practices helps turn what could be a frustrating experience into a smooth, positive one.

Using a tool like Refundid makes this even easier. Customers can submit returns, select items for refund or exchange, and access prepaid return labels, all in one self-service portal. Instant refunds mean shoppers can get their money back in under 30 seconds, even before the item is returned, giving them confidence and reducing the number of support questions your team has to handle.

Ilan Kessler is the Co-founder & CTO of Refundid, an e-commerce returns platform providing instant refunds and exchanges for shoppers. Together with the Refundid team, we bring deep software engineering expertise and a strong focus on building technology that enhances customer confidence in online shopping.

Insights

You might also like

How to reduce return processing costs for my business

Returns can drain profits if poorly managed. Reduce volumes with clearer product information, better quality control, and strong packaging. Streamline processing through automation and self-service tools like Refundid, adjust policies to encourage exchanges, and use data insights to lower costs while improving customer experience.

Best practices for e-commerce returns handling

With return rates reaching 30%, strong ecommerce return practices are essential. Clear policies, self-service portals, instant refunds, flexible outcomes, automated communication, and reducing preventable returns improve customer experience, build trust, and protect long-term revenue while keeping operations efficient.

How to automate Shopify returns processing?

Automating Shopify returns reduces manual admin, improves customer experience, and speeds up refunds. Using Shopify’s self-serve tools or platforms like Refundid helps streamline requests, apply rules, issue refunds faster, and generate insights that improve operations and customer satisfaction.

Top return management platforms for US retailers

High online return rates make returns management critical. This guide compares leading ecommerce returns software and explains why platforms like Refundid help boost efficiency, retain revenue, and keep customers satisfied.

Real-time tracking solutions for ecommerce returns

This article explains how real-time tracking streamlines ecommerce returns and why solutions like Refundid improve visibility, efficiency, and customer trust for Australian online retailers.

Transfer pricing for US returns: what retailers need to know

U.S. tariff changes mean returns now require accurate transfer pricing, creating new tax and compliance risks for international retailers. Refundid automates this by applying Shopify transfer prices to every return, ensuring correct customs declarations, avoiding penalties, and keeping cross-border returns simple and compliant.

What features should a returns management platform have?

A great returns management system makes returns simple, fast, and transparent. The best platforms automate approvals, refunds, and exchanges, offer self-service portals, update inventory in real time, and provide clear communication.

How to improve customer satisfaction with returns process

A smooth return process builds trust and keeps customers loyal. Make returns easy, communicate clearly, and issue fast refunds with automation tools like Refundid. By reducing friction and turning returns into a positive experience, you improve satisfaction, cut errors, and bring shoppers back.

How to automate refund processing for online stores

Manual refunds create problems your business doesn’t need — errors, delays, frustrated customers, and wasted time. The fix is simple: automate your returns process. With the right system in place, refunds become faster, more accurate, and much easier for both your customers and your team.

How to offer immediate product exchanges to customers

Immediate exchanges give customers a smoother experience, build loyalty, and even help reduce returns. By making it quick and easy to swap items, you turn a potential frustration into a positive moment for your customer.

Best way to process quick refunds for customers

Slow refunds hurt loyalty. Fast refunds set you apart. With Refundid, you can offer instant refunds and see customers repurchase up to three times faster. The key is a simple, quick, transparent process — and here’s how to make it happen.

Best returns management system for Australian e-commerce

We’ve rounded up the best product returns management software to help you streamline your returns process, cut friction, and keep more customers coming back.

Compare e-commerce return integrations for Australian businesses

We break down how four major ecommerce platforms — Shopify, BigCommerce, WooCommerce and Magento — compare on returns, so you know exactly what you’re getting before choosing the best platform for your store.

Top 6 Shopify Returns Apps in 2026

In this guide, we’re taking a look at the top 6 Shopify returns apps in 2026. We’ll break down what makes each one unique, who they’re best for, and how they can help your store save time, reduce headaches, and even boost revenue.

Shopify Returns App vs Shopify Native Returns: What Growing Brands Need to Know

Compare Shopify’s native returns with a full returns app. See where Shopify’s tool works, where it falls short, and when brands should upgrade to Refundid.

How Does Refundid Make Money?

Refundid makes money through retailer fees, with optional subscriptions and small penalties that encourage good return behaviour, always free for customers who play by the rules.

Refundid iPhone with all the BNPL apps installed

How does Refundid work with BNPL?

Refundid can be used even if you purchased with a "Buy Now Pay Later" service like Afterpay, Zip and Klarna. Find out how.

Refundid Featured on Channel 7 Sunrise | Ilan Kessler on Instant Refunds

Refundid was featured on Channel 7’s Sunrise, where Co-Founder & CTO Ilan Kessler shared how instant refunds are transforming the way Australians shop and return online orders.

How to Integrate a Returns Portal and Why It Matters in 2025

In 2025 integrating a returns portal streamlines operations, keeps data accurate, and delivers a seamless returns experience with Refundid’s integrations.

How to Do Shopify Returns in 2025 (Without Overengineering)

Shopify returns in 2025 don’t need to be complicated. Start small with Shopify’s free Self-Serve Returns, then upgrade to a full returns platform when your volume and customer needs demand it. Here’s how to keep things simple until you’re ready to scale.

Refundid | ReturnGO Integration

Partnership Announcement: ReturnGO partners can now offer their customers the option of receiving an instant refund with Refundid.

Ecommerce returns best practices for 2023

Having a solid returns policy is essential to maintaining a good reputation, growing brand loyalty and increasing repurchase rates.

VRG GRL: Returns, Refunds and Refundid

Welcome to our second Refundid partnered Q&A series with VRG GRL's Co-CEO Cale Suesskow.

Refunds & Returns Insights: Every eCommerce Business Should See

Take a look at these customer insights that showcase just how important quick and easy returns can be for your business.

Case Study: Culture Kings

Learn how instant refunds helped boost Culture King's sales and performance metrics

Meet Refundid's CEO & Co-founder, Brad Karney

Brad is an avid Liverpool F.C. supporter and ecommerce enthusiast, before co-founding Refundid he was… can you guess?

5 Brands with Superior Customer-Centric Returns Policies

Customer service is king! Customers expect world-class customer service throughout the entire order life cycle when shopping online.

Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Learn how you can maximise retention, loyalty, and active customer numbers through your returns policy