Ecommerce Returns in 2025: What’s the Average Rate—and How Can You Reduce It?

Returns are the elephant in the ecommerce room. No matter how good your products are, returns are an inevitable part of online retail—but they’re also expensive, time-consuming, and often the first step toward costly chargebacks.

So, where do we stand in 2025? And more importantly—how do you keep return rates down without sacrificing customer satisfaction?

Let’s break it down.

What’s the Average Ecommerce Return Rate in 2025?

Return rates have stabilized somewhat post-pandemic, but they’re still significant:

• Apparel & Fashion: ~24–30%
• Consumer Electronics: ~10–15%
• Health & Beauty: ~5–8%
• Overall Ecommerce Average: 18.2%

While some industries are hit harder than others, the trend is clear: as ecommerce grows, so do returns. Customers are ordering more, expecting more—and returning more.

Why High Return Rates Hurt Your Bottom Line

Returns aren’t just a logistical headache. They create ripple effects across your business:

• Increased shipping and restocking costs
• Inventory strain (especially for seasonal or limited goods)
• Customer support overload
• Higher risk of chargebacks, especially when return policies are unclear or misunderstood

And when a return turns into a chargeback? That’s when things get really expensive.

Enter Predispute Services: Your Return Rate Secret Weapon

At Dispute.com, we believe the key to fewer chargebacks and returns starts before a dispute ever happens.

Predispute services are proactive tools and strategies that intercept customer frustration before it escalates into a return or dispute. Think of them as a digital peacekeeper between your customer and your payment processor.

Here’s how they work:

1. Real-Time Order Resolution

Customers can instantly resolve minor issues—like shipping delays or wrong item variants—through AI-powered assistance before requesting a return.

2. Enhanced Communication

Automated updates and contextual info reduce “Where’s my order?” complaints, which are a major cause of unnecessary returns.

3. Clear Policy Reminders

Predispute systems remind customers of your return rules (e.g., restocking fees or time windows), which helps prevent misuse.

4. Incentivized Exchanges Over Refunds

Offer store credit, upgrades, or free exchanges before jumping straight to a refund—reducing loss and retaining the customer.

5 Ways to Reduce Return Rates in 2025

Want fewer returns and happier customers? Here are our top strategies:

1. Use Predispute Services Early Automate customer engagement as soon as an order is placed to reduce post-purchase uncertainty.
2. Add Rich Product Content Better images, videos, sizing guides, and reviews reduce surprises—one of the top causes of returns.
3. Offer Live Chat or Conversational AI Answer pre-purchase questions in real time to avoid “just in case” buying.
4. Improve Delivery Accuracy Invest in fulfillment tracking and error detection to prevent wrong or late shipments.
5. Make the Return Experience Transparent Clarity builds trust. Confusing policies invite returns and chargebacks.

Final Thoughts: Prevention Is the Best Protection

Reducing your return rate isn’t just about logistics—it’s about creating a better post-purchase experience. When customers feel informed, empowered, and supported, they’re less likely to return products or file disputes.

And that’s where Dispute.com comes in.

We combine predispute technology with expert chargeback support to help ecommerce brands keep costs low, resolve issues faster, and protect their reputations in the process.