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🎯 The Hidden Costs of E‑Commerce Returns

18 June 2025

by Isabelle Ohnemus

🎯 The Hidden Costs of E‑Commerce Returns

Sky‑High Return Rates

E-commerce returns are more than just a logistical headache—they’re a profit killer.

  • Return rates in online shopping typically range from 20 % to 30 %, with apparel and footwear hit hardest—up to 56 % in some cases (FT, Stamped With Love, WSJ). And according to insights from EY, up to 75 % of these returns are driven by issues related to size and fit.
  • – In 2024 alone, shoppers returned over $360 billion worth of purchases—nearly a quarter of all online sales (Finaloop, WSJ).

Direct Financial Impact

  • Returns cost retailers 20 %–39 % of each product’s sale price (arXiv study, Finaloop).
  • – On average, 7 % of gross retail sales are eaten up by returns (Netimperative, MeteorSpace).

Operational Burdens

Returned products require:

  • – Restocking
  • – Inspection
  • – Repackaging
  • – Reverse shipping

These processes inflate logistics costs, strain teams, and delay inventory recirculation.


Profit Erosion & Hidden Costs

Returns are more than refunds:

  • Revenue loss
  • Processing and labor costs
  • Return fraud (estimated at 14 % of all returns) (Simicart)
  • Environmental impact (more packaging waste and emissions—The Australian


đź‘• Why Fit Matters

Up to 45 % of returns are related to size, fit, or expectation mismatch.

  • – The rise of “haul culture”—ordering multiple sizes with the intent to return most—is rampant, especially among Gen Z (Mailmodo, Vogue Business, The Times).
  • – Inconsistent or vague size guides lead to frustration, cart abandonment, and repeat returns.

đź’ˇ EyeFitU: Smarter Sizing, Lower Returns

What Is EyeFitU?

EyeFitU is a Swiss-built Size-as-a-Service platform using AI and anthropometric data to deliver hyper-personalized size recommendations.

đź”§ Tools include:

✨ Integrates easily with Shopify, Magento, and custom e‑commerce stacks.


The ROI of Better Fit

With EyeFitU:

  • – Brands report a 7.88 % lift in net sales—that’s $78,800 more per $1M in revenue (EyeFitU Case Study).
  • – Clients reduce return rates and logistics costs while improving customer satisfaction

Tangible Benefits

BenefitROI & Impact
Conversion ↑ Better fit = more confident purchases
Returns ↓ Fewer returns = lower costs
Customer Experience ↑ Personalized shopping builds trust
Efficiency ↑ Reduced reverse logistics workload
Sustainability Less waste, fewer emissions

âś… Final Take

Returns silently siphon up to 40 % of purchase value and burden supply chains.

But tools like EyeFitU flip the script.

With AI-driven sizing, retailers can:

âś… Cut return rates
âś… Increase conversions & loyalty
âś… Lighten warehouse load
âś… Strengthen sustainability efforts

EyeFitU is no longer a nice-to-have—it’s a strategic growth lever for any serious fashion or footwear brand.