In 2025, the world of e-commerce returns is shaping up to be less about logistical headaches and more about seamless, customer-pleasing efficiency, thanks to the big wins of 2024. Returns can never be eliminated, of course, but collaboration between merchants and their fulfilment and shipping partners is finally helping untangle this knotty industry issue.
There’s no denying returns have been a sizeable thorn in everyone’s side. Our global study in 2023[1] found that on average, retailers said their returns rate was approaching a quarter of their total purchases (23%). This figure increases to 27% in the US and in Switzerland, and 26% in Germany and the UK. And when shoppers were asked to consider, when having an international order fulfilled, what would influence their decision to make a purchase, their top three responses revolved around shipping. Nearly one shopper in three (32%) will check their preferred returns method is available (paperless, drop off box, collect, postal office, in-store) before finalising an order.
I believe that in 2025, retail directors across the UK, Europe, and the US can finally envisage reverse logistics not just as a necessary evil—but a manageable part of life. This is largely thanks to more granular visibility of items in the reverse logistics channel, with retailers and their parcel shipping partners sharing data on digital returns platforms. Returns processing information can be communicated in a timely fashion to take the stress out of the situation for all parties.
If you can quality-assess a returned dress at a central processing hub, and activate a refund before the dress continues its onward journey back to the retailer, the customer will be relieved and delighted. If your logistics partner handles customs and VAT documentation for the outward cross-border shipment, it makes sense for them to use the same paperwork for speed and ease, if the item is unwanted and needs to head back to the UK. These are the kinds of process improvements that have been made in recent years, taking the sting out of returns for shoppers and retailers alike.
Here are some of the ongoing improvements to returns that will have a positive impact in 2025:
Targeted returns management with customer profiling
Retailers are moving away from a “one-size-fits-all” approach to returns, instead adopting customer profiling to identify and manage challenges like fraud and serial returners. Advances in technology now allow brands to analyse purchase and return behavior to detect patterns that may signal misuse of returns policies. By profiling customer segments, retailers can take tailored actions—such as limiting returns for serial abusers or offering incentives for exchanges instead of refunds.
At the same time, predictive tools are helping retailers improve customer experience while mitigating risks. For example, technology can flag customers with a high return history and suggest alternate actions at checkout, like better size guidance or stricter return conditions for specific products. This ensures fairer policies for all customers and reduces the financial burden of excessive or fraudulent returns.
Consolidating returns shipments
When it comes to managing international returns, a key focus for Asendia in 2024 has been the continued development of our e-PAQ Returns service, launched in July 2023. Our end-to-end solution simplifies the returns process for overseas customers and leverages our global network of consolidation hubs, providing a seamless and efficient experience for e-commerce sellers and their customers.
Consolidating returns reduces transportation costs by combining shipments into fewer, fuller truckloads or air freight return batches. This reduces the per-unit cost of moving items. Proactive 3PLs are investing in dedicated returns facilities, housing the latest technology that can process jeans that don’t fit, and rugs that don’t look quite right, more quickly and efficiently. Some logistics partners are also facilitating faster operations at scale, such as repacking and redistributing unwanted inventory to charities or resale markets.
Apps to improve the efficiency of returns
Retailers are saving time on manual returns with return management apps. The apps speed up the process, give customers a status notification of their return, and update inventory management systems automatically.
For example, ePAQ Returns is supported by a digital platform which can be integrated into a retailer’s existing inventory management portal. This can provide real-time updates, live tracking, and alerts.
Digging deeper with data analytics
Data analytics, with the potential for harnessing Generative AI for automated predictions, could further finesse returns management in 2025. By analysing historical data, online brands can forecast return rates, identify trends, and anticipate potential issues before they escalate. This approach allows companies to allocate resources effectively, streamline operations, and work towards minimising the impact of returns on their bottom line.
At Asendia, we analyse international returns data to advise brands which countries and regions tend to return online purchases more than others. For instance, many Southeast Asian countries have very low returns rates, because culturally, the expectation is to keep what you have bought. At the opposite end of the spectrum, shoppers in Germany, the Netherlands and the UK are high returners.
It's also possible to pinpoint which product lines are being returned the most, and alert retailers to the need to address a manufacturing fault, packaging shortfall or sizing issue.
Localise returns to inspire loyalty
If retailers can perfect the customer experience, returns can help build shopper loyalty, and this is particularly the case for brands pursuing international e-commerce sales growth. Localising returns policies and processes to better cater to the diverse expectations and preferences across various markets is an essential strategy for brands aiming to enhance customer satisfaction. For example, while Japanese shoppers value high levels of service and prefer in-person return options, US shoppers are more likely to accept self-service options, such as QR coded labels and automated drop-off points.
A localised strategy will ensure customers feel their unique needs are understood and prioritised, leading to improved trust and loyalty. Additionally, offering flexible and relevant return solutions that resonate with local preferences can differentiate a brand in competitive markets.
Sustainability in returns
Retailers are increasingly focusing on sustainability in e-commerce returns by implementing greener practices such as using recyclable packaging, optimizing return shipping routes, and encouraging product recycling.
I think 2025 could be the year parcel lockers go mainstream for the first time in many countries. At Asendia, we’re teaming with locker operators in key locations around the world, so orders made from UK websites can reach overseas customers with ease and use the same for returns. This will also help enormously with reducing the carbon footprint.
In 2025, e-commerce businesses need to work closely with reverse logistics partners to develop smarter, greener, and faster returns processes. Building a competitive edge will be crucial, so why not turn once-dreaded returns into opportunities to win new customers and boost sales?
[1] https://www.asendia.com/asendia-insights/e-paq-returns-solution