How To Handle E-Commerce Return Logistics In 2025

Are you looking to handle e-commerce returns logistics in 2025 as you’re scaling your online sales and starting to feel the strain of returns?

You’re not alone.

As E‑commerce is projected to push into multi‑trillion‑dollar territory, and with growth comes a bigger, more complex returns tail.

In this article, we’ll cover our 5-step process of building an effective return logistics process, what customers expect from returns, common challenges for the retailers we work with, and the big 5 return options you should consider.

5 Steps to Build an Effective Return Logistics Process

The 5 steps to build an effective return logistics process include:

• Defining a clear return policy.
• Automating return requests.
• Partnering with the right carriers and 3PLs.
• Efficient warehouse handling.
• Tracking and analysing return data to make data-driven decisions.

Let’s go over each one of them in more detail:

#1: Define a Clear Return Policy

The first step to handling e-commerce return logistics is to define a clear return policy to remove uncertainty for shoppers and set expectations that protect your margins.

As 53% of shoppers avoid purchases due to unfavourable returns policies, getting returns right is both a customer experience and a revenue play.

Here’s what a good return policy looks like:

• A short, scannable policy on product pages and checkout.
• Clear return windows, accepted conditions (unworn, tags, hygiene rules), and the refund timeline.
• Prominent mention of return options (refund, exchange, store credit, in‑store drop‑off) and any fees.

After you figure it out, you want to publish a one‑paragraph headline policy on product pages and a full policy linked at checkout.

💡 Offer at least two alternatives to a cash refund (exchange, store credit). For example, we found that 57% of consumers considering a return will accept a gift card.

➡️ Our customisable returns portal lets you surface the exact policy language and options you want at the point a customer requests a return.

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You can use configurable rules to show different options by product type, country, or reason for return (e.g., offer exchange or store credit first for sizing issues).

Feel free to take a look:

#2: Automate Return Requests

Next up, you want to automate your return requests to reduce operational touchpoints and speed up resolution.

The goal here is to let your consumers choose the outcome that keeps revenue in your store.

Here’s what good looks like from our lenses:

• A shopper can request a return, choose a reason and preferred outcome, and receive a shipping label or drop‑off instructions without emailing support.
• Returns are automatically routed into your OMS/CRM, so staff see status and next steps.

💡 A good way to approach this is to configure return reasons and map desired outcomes (e.g., "didn’t fit" → exchange first).

You then need to integrate the portal with your order management or CRM so returns update the customer record automatically.

To reduce WISMO queries, enable automated customer notifications and tracking to reduce status queries.

➡️ If your store is on Shopify, you can get started in a matter of minutes with ZigZag’s single‑click Shopify integration.

Our Shopify returns portal supports conditional flows: present gift‑card refunds, exchanges, or paid returns based on return reason, product rules, or customer segment.

#3: Partner with the Right Carriers and 3PLs for cost and speed

The next step is to partner with the right carriers and 3PLs with the goal of lowering your return shipping costs while maintaining a fast, reliable experience for shoppers.

That will mean:

• Multiple carrier options for customers (drop‑off, courier pickup, in‑store kiosk).
• Smart routing to pick the cheapest reliable carrier and consolidation where possible.

You want to segment return options by region (domestic vs. international) and present customers with the best option.

💡 We’d recommend that you configure paid returns where appropriate to deter abuse and cover costs.

➡️ With ZigZag, you don’t have to worry about carriers and 3PLs because we use our own network, which will also give you access to discounted rates.

Our platform connects to 1,500+ carrier services across 170+ countries, letting you optimise for price, transit time, and location.

ZigZag will also help you offer local options like in‑store returns or drop‑off kiosks to cut cross‑border shipping costs.

#4: Streamline Inspecting, Grading, and Restocking Returned Inventory

The next step is to streamline inspecting, grading, and restocking returned inventory.

The goal is to turn returns into recoverable inventory quickly and consistently while preventing fraudulent or unsellable stock from re-entering circulation.

You want to have:

• Clear SOPs for inspection, grading (new, minor fault, damaged), and disposition (restock, refurb, liquidate).
• A dedicated returns area that keeps returned inventory separate from outbound stock.

Your brand can outsource this demanding task to ZigZag’s Returns Hub, which captures structured return reason and condition data at the point of request so warehouse teams receive the correct disposition instructions with each parcel.

ZigZag Global's Returns Hubs are strategically located facilities designed to manage and optimise the returns process for retailers, particularly those with international operations.

Our hubs handle tasks like receiving, inspecting, validating, grading, and customs clearance for returned items.

#5: Track and Analyse Return Data To Reduce Future Returns

Last but not least, you want to track and analyse return data to reduce future returns by using returns as a source of actionable product and supply chain insight.

The ultimate goal is to be data-driven so you can protect your margins in the long run.

Here’s what you want to do:

• Drill‑down reporting by SKU, reason code, and customer segment.
• Set up early alerts for high return‑to‑outbound ratios or spikes in a product’s returns.
• Set up reporting that informs merchandising, sizing guides, and carrier decisions.

Something actionable is to flag and investigate top‑return SKUs and to run root cause (sizing, imagery, packing damage).

You can then feed those insights to merchandising and suppliers, such as adjusting size charts, modelling images, or packaging.

➡️ You can use ZigZag’s Returns Reporting Hub to gain insights into why consumers return products, your revenue from paid returns, transit times, and get access to a data discrepancy dashboard.

💡 You can also use the analytics from the Returns Reporting Hub to prioritise inspection workflows on products with high return rates or suspected defects.

Book a demo with ZigZag now!

FAQ

#1: Why do logistics scale matter right now?

Out-of-home (OOH) returns, lockers, and PUDO networks are booming. InPost, one of Europe’s OOH leaders, delivered over one billion parcels in 2024; a record that underscores the network scale retailers can tap into for returns.

InPost has been expanding through M&A, most recently acquiring Spanish last‑mile firm Sending to strengthen its door-to-door and fulfilment capabilities in Spain, building on earlier moves like the Mondial Relay acquisition (France) that expanded parcel shop networks across Western Europe.

#2: What is the importance of return logistics in e-commerce

The reason why return logistics are important in e-commerce is that they are a business lever:

• A simple, transparent returns flow keeps customers coming back. When it’s hard to return, conversion and CLV suffer.
• Returns mean shipping costs, inspection/restocking labour, potential markdowns, and sometimes unsellable stock. Industry reports show returns are material to retailer P&Ls.

Apart from this, consumer expectations are growing by the day. Shoppers treat returns as part of the full purchase experience. Many consumers prioritise convenience when choosing where to shop.

Our research has also found that 80%+ of customers in the UK want to see return options and carriers up front so they can plan.

#3: What are the common challenges in return logistics for retailers

Here are the 5 most common challenges in return logistics with the retailers we’ve worked with:

• Too many carrier accounts to manage. Choice is good for customers but costly for operations.
• Verifying product condition. When should the inspection happen? Who determines whether damage happened in transit or after delivery?
• Fraud and abuse. Staging, wardrobing and false damage claims exist, which is why you need clear SOPs and fraud detection to limit abuse.
• Processing inefficiencies. Late carrier arrivals, misrouted returns, and manual triage blow up costs.
• Cross-border returns complexity. Customs, duties, and paperwork quickly multiply costs for international returns.

#4: What are the big 5 return options, and why do you need them

The big 5 return options are:

• Return via Post Office: Very popular in the UK and Germany. Low customer learning curve, but it can be slower.
• Locker / Automated parcel machines: Booming in many markets; greener because of centralised collection and ideal for scale. Locker networks are also central to locker-centric carriers’ expansion strategies.
• Convenience stores/parcel shops: Highly popular in some countries (e.g., France). Great for extended hours and customer flexibility.
• Home collection: A premium, high-cost option. Critical for large orders, disabled customers, or high-value returns. Should be priced as a premium service.
• Return to store: Often the cheapest for the retailer and can drive footfall and exchanges. Great for omnichannel retailers with physical footprints.

The reason why you need to have so many on your website is that different shoppers will want different return options.

💡 This is why we want to give customers a choice, but still use routing rules based on product value, weight, and customer tier to nudge them to the most cost-effective option for us and for them.

#5: What are some of the best practices for reducing returns

Here are the 5 best practices for reducing returns based on what we’ve seen work best in the industry:

• Start at your own website: Improve product descriptions, measurements and size guides so shoppers do not order the wrong product for their needs.
• Use accurate images and product videos (360° views, fit footage).
• Leverage customer reviews and Q&As to surface fit issues.
• Offer pre-purchase live chat to address doubts (reduces bracketing and buyer anxiety).
• Consider incentives for exchanges vs refunds (e.g., instant credit or free returns to store).

#6: How to leverage technology in return logistics

Here’s how modern merchants are handling their return logistics with the latest technology:

• Return Management Software (RMS): Centralises labels, carrier options, and automates refunds.
• AI & forecasting: Predict which SKUs will return and when, so you can pre-allocate inspection capacity and secondary-market plans.
• Barcode scanning & automated routing: Reduce manual errors and speed up warehouse decisions.
• Circular-logistics tech: Link returns into resale platforms, repairs and recycling workflows to recover value and reduce waste.

Next Steps: Handle Your E-Commerce Return Logistics From A-Z With ZigZag Global

Built for merchants who operate globally, ZigZag offers an all-in-one returns platform that is designed to take over any online store’s post-purchase experience.

If you’re an e-commerce leader looking for a returns management platform that offers:

• A customisable returns portal that can be personalised to your shoppers.
• Wide range of return options, such as paid returns, return to store credit, and return to gift card.
• Access to detailed analytics and reports on what drives consumers to return products.

Then you can book a demo to learn more about ZigZag Global.

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