🎯 The Hidden Costs of E‑Commerce Returns
18 June 2025
by Isabelle Ohnemus

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:
- – SizeFinder™: helps users choose the right size instantly
- – SizeVisualizer™: shows how an item will fit their body
✨ 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
Benefit | ROI & 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.