How to Handle International Returns: ZigZag’s Guide For 2025

Expanding into international markets is an exciting milestone for any e-commerce business.

However, with global expansion come new challenges that many retailers don’t consider upfront, such as how they will handle international returns.

Businesses that aren’t prepared often face high shipping costs, complex customs regulations, frustrated customers, negative reviews, and lengthy processing delays.

Without a clear plan, it can quickly become overwhelming.

In this article, we’ll look at the challenges of handling international returns, share practical steps to streamline the process, and discuss how an online returns platform can help deliver a seamless global return process.

Why Retailers Need International Returns Processes

Many businesses believe their domestic returns processes will translate smoothly to international markets. In reality, global returns present a different challenge altogether, considering:

• Higher shipping costs. Return shipping fees are significantly higher for international orders, as rates are set at the point of origin.
• Longer transit times. A return that takes two days locally could take weeks, depending on the destination.
• Stringent customs clearance requirements. Each country has unique regulations, duties, and processing times that aren’t negotiable.
• The need for local carrier partnerships. Establishing relationships with reliable local carriers can improve efficiency and reduce costs.

The good news is that international returns aren’t impossible to get right, and they don't have to be a drain on resources, time, and money. They can be managed in a cost-effective manner when approached the right way.

Best Practices For Handling International Returns

Here are some best practices businesses can implement to handle international returns.

1. Create Country-Specific Returns Policies

Many retailers rely on a single, universal returns policy, but what works in one market may not work in another. Without adapting policies to different regions, businesses risk misalignment with local laws, customer confusion, and spikes in support calls.

A seven-day return window may be reasonable for domestic customers, but it could be unrealistic for international shoppers. Similarly, publishing a policy only in English can confuse non-native speakers and lead to misunderstandings that damage trust.

The Solution

Develop country-specific returns policies that take into account:

• Local laws and regulations. Ensure compliance with consumer rights, import/export rules, and refund standards.
• Language and accessibility. Translate policies into the dominant local language to reduce confusion.
• Transit time allowances. Set realistic return windows based on typical shipping and refund timelines for that region.

Why it works: A clear, structured, localised policy helps everyone understand their rights and responsibilities. It also builds trust by showing customers you’ve accounted for the realities of their region, not just your own.

2. Don’t Use Labels in the Box

Pre-printed return labels placed in the box may work domestically, but they pose serious risks when used for international returns.

• They can lack important country-specific customs information needed for cross-border shipping.
• Place responsibility on the customer to fill in the details accurately. In turn, incorrect or incomplete customs documentation can cause shipping issues and delays.
• If they don’t include tracking integrations, packages may be lost or delayed, which will frustrate both the customer and your support team.

The Solution

Use an online returns portal to manage and initiate international returns centrally. This will allow you to:

• Generate accurate customs documentation automatically.
• Enable real-time tracking for both customers and your team.
• Prevent unidentified packages by ensuring every return is registered in the system.

Why it works: An online portal ensures all returns are compliant, traceable, and efficient. It also removes manual steps, reduces errors, and builds customer confidence around returns tracking.

3. Be Prepared For Customs Compliance

Cross-border returns come with strict customs regulations, and failure to comply can lead to delays, fines, and rejected shipments.

For retailers, that means extra costs, frustrated customers, and inventory that stays stuck in transit.

Missing or inaccurate customs data, such as an unclear item description or incorrect tariff code, can cause parcels to be flagged at the border.

This not only delays returns but can also result in unexpected duties or processing fees that impact your margins.

The Solution

Be prepared ahead of time to ensure every return includes complete and accurate customs information, either through your returns platform or local warehouse partner. This includes:

• Contents description – What is inside the parcel.
• Country of origin – Where the item was manufactured.
• Tax and tariff codes – Proper classification for duty calculations.

Why it works: Proactively preparing for and managing customs compliance is a key part of making your international returns process smooth, cost-effective, and scalable.

4. Take Note of Local Carrier & Market Preferences

Offering the same carrier or return method across markets can work initially. But, over time, it can often lead to friction in the customer experience and higher operational costs.

One thing that retailers often miss is that return preferences and carrier capabilities vary widely across countries.

For example, in Germany, 72% of consumers prefer to return items via national post offices, while in France, 51% favour convenience store drop-offs.

The Solution

Adapt your returns processes to match regionally preferred carriers and offer multiple return options where possible. This might mean offering post office returns in some countries and locker or convenience store drop-offs in others.

Why it works: Understanding and adapting your returns to market-specific preferences can turn a standard returns process into a competitive advantage in each region.

5. Prepare Your Customer Service Team

International returns are complex. Longer transit times, customs clearance delays, and higher costs will inevitably lead to more service-related enquiries. And when customers do reach out, they expect quick and informed answers.

If a customer in Canada is waiting on a refund for a return shipped from the U.K., and your service team can’t explain the delays, frustration can build quickly.

The Solution

Equip your customer service team with the right tools, training, and resources to support international returns. That means giving them access to:

• Customs and tariffs information. Agents should be able to explain duties, VAT, and processing times clearly.
• Carrier-specific details. If you offer multiple return methods, your team should be knowledgeable about carrier policies, estimated timelines, and escalation processes.
• Real-time tracking. Ensure agents can access tracking updates and proactively inform customers about the status of their return or refund.

Why it works: Well-prepared service teams can resolve issues faster, reduce frustration, and build trust even when delays are out of your control. Instead of saying “we’re not sure,” teams can confidently help customers no matter where they are located.

6. Consolidate Returns In-Country

Shipping each returned item individually across borders to a central warehouse is costly, slow, and environmentally inefficient.

International freight costs can be several times higher than domestic rates, and shipping low-value or non-resellable items back to their origin might not always make financial sense.

And, as return volumes grow, an order-by-order approach can become even more unsustainable, especially for small to mid-sized retailers.

The Solution

Use in-country return hubs to consolidate items before shipping them back in bulk. These hubs allow you to inspect, grade, and sort returns locally. Items can be allocated for transit and resold locally, donated, recycled, or shipped back to the country of origin.

Why it works: Consolidating returns in-country is a simple way to help lower shipping costs, allow you to process refunds faster, increase returns handling flexibility, and reduce your organisation’s environmental impact.

7. Resell Through In-Country Marketplaces

Not all returns need to make their way back to your central warehouse, but many businesses still follow this as a default approach. The result is unnecessary costs and logistical inefficiencies.

Shipping a single returned item back from a customer in Australia to a warehouse in the U.K. can cost more than the item itself, especially with low-value or trend-driven products like fast fashion.

The Solution

Instead of paying for reverse logistics, retailers can redirect eligible items to local marketplaces, donate them, or prepare them for refurbishment without the added cost of international freight.

Why it works: Using this approach turns each return into a revenue recovery opportunity and can even help maximise resale value on time-sensitive goods.

How ZigZag Can Help Your Business Manage International Returns

At ZigZag, we offer several key solutions that help retailers simplify and streamline the complex process of managing international returns. Here are some of the ways we can help your business manage international returns.

Online platform for returns management

ZigZag’s platform provides a centralised, digital solution for managing returns in multiple countries, with key features and tools to help businesses reduce costs and offer a world-class returns experience.

✅ Introduce smarter processes and lower costs

• Automate returns to minimise manual work.
• Ensure accurate customs data on every return.
• Support paid returns in multiple currencies.

✅ Enhance the returns experience for your customers

• Offer flexible return methods and carrier options.
• Localise policies in multiple languages.
• Provide real-time tracking and status updates.

💡 Find out more about ZigZag’s online return portal.

DEZZ European Hub

ZigZag’s DEZZ Logistic Hub in Germany is a dedicated returns management facility designed to help retailers streamline cross-border returns from Europe.

Unlike traditional warehouses, DEZZ offers end-to-end returns processing, including validation, grading, automated customs documentation, and smart consolidation.

Key benefits for retailers in Europe:

✅ Faster refunds and exchanges. Immediate item verification and grading at DEZZ reduces delays and allows for quicker refunds and exchanges.

✅ Cost savings through consolidation. Returned items are grouped and routed based on retailer-specific rules, lowering costs and simplifying reintegration into your supply chain.

✅ Simplified cross-border returns. DEZZ is fully integrated with German customs, ensuring fast clearance and enabling duty drawback opportunities.

✅ System integration and visibility. DEZZ connects seamlessly with ZigZag’s Returns Portal and Returns Management Solution.

Extensive Carrier Network

A key benefit of ZigZag for global businesses is access to our carrier network, which spans 170 countries, 500,000 drop-off locations, and over 1,500 carrier services.

These established partnerships enable us to provide clients with streamlined returns, including optimised global package routing and efficient customs clearance.

With access to drop-off locations, lockers, courier pickups, and local postal services, retailers can:

✅ Enhance customer satisfaction. Provide customers with various return options that cater to regional preferences.

✅ Lower costs. Choose the most cost-effective and reliable carriers available in each location.

✅ Improve efficiency. Minimise delays, transit times, and lost packages by partnering with trusted logistics providers and optimising routing.

💡 Find out more about ZigZag’s Global Carrier Network.

ZigZag & Portless Partnership

ZigZag has partnered with Portless, a supply chain company that fulfils direct-to-consumer (DTC) orders from China and Vietnam while providing a domestic returns experience.

This partnership helps retailers manage international returns more cost-effectively by keeping them in the country of sale rather than shipping them back to origin.

Key benefits for international retailers

✅ Lower return costs by avoiding expensive international shipping.

✅ Faster processing with in-country handling and disposition options.

✅ Sustainability improvements by reducing unnecessary return shipments.

✅ Better customer experience with localised returns and quicker refunds.

Portless has cut traditional shipping times from China and Vietnam from 45-60 days to just six days, allowing brands to scale efficiently.

By integrating with ZigZag’s global returns network, international retailers can access a seamless solution for both fulfillment and returns.

💡 Find out more about ZigZag and Portless’s Partnership.

Quickfire Tips for Managing International Returns

1. Localise returns policies. Tailor your returns policy for each country to align with local regulations and shipping realities.
2. Don’t keep customers waiting. Process refunds quickly where possible to improve customer satisfaction.
3. Introduce paid returns. Charge for international returns, as most customers expect to cover these return costs.
4. Give customers various return options. Offer multiple carrier options to accommodate regional preferences.
5. Look at alternatives to reverse logistics. Resell returned items locally to reduce costs and minimise environmental impact.
6. Explore options to reduce returns costs. Donate or recycle low-value or damaged goods instead of shipping them back.
7. Become data-driven. Track and analyse return data to adjust policies and improve efficiencies in handling returns.
8. Partner with a global returns solution. Use ZigZag to simplify global returns and reduce operational headaches.

To learn how ZigZag’s solutions can empower your organisation’s international returns, book a demo with our team today.

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