Reverse logistics killed my margin, but returns actually built my brand

I found out last quarter that 18% of my orders came back, mostly shoes and jackets, and I almost panicked. Then I dug into the data and realized returning customers spent 2.3x more after a smooth return process, even with the shipping cost on me. Some folks say returns are just a loss leader and you should charge restocking fees to scare off abusers. Others argue the return experience is the new storefront, especially for apparel where fit is always a gamble. The surprising stat was in a Shopify report about repeat purchase rates after a hassle-free exchange. So which side do you lean on, charge a fee or eat the cost and hope they come back? Curious if anyone here tracks return rate against customer lifetime value.

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beth_hart681mo ago

My buddy runs a consignment shop in Portland and told me returns actually fixed his sizing problem, people would send back stuff that fit weird and he started using those notes to tweak his size charts until the return rate dropped to 6%. That data hiding in your returns is worth more than the shipping cost, like free market research every time someone sends back those shoes.

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