Return Fees Now Standard as Ecommerce Brands Crack Down to Protect Margins, Loop Report Finds

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MELBOURNE, Australia--(BUSINESS WIRE)--Sep 24, 2025--

Loop today announced the release of their 2025 State of Ecommerce Returns Report, which found that returns are no longer just a cost of doing business – they’re a critical source of revenue retention and strategic growth. Analysing over 13 million returns across 4,000 Shopify merchants, the report reveals that return fees are now standard practice, exchanges are driving stronger loyalty, and merchants are finding new ways to protect margins in a high-cost environment.

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Unlock the largest Shopify returns benchmark report with 250+ data points, global insights, and growth strategies from leading brands.

70% of merchants now charge return fees, up from 65% last year. In Australia and New Zealand (ANZ), that figure climbs to 73% – the highest of all markets. Rather than hurting customer loyalty, this move appears to be working – Loop brands have so far retained $516 million (USD) in revenue in 2025 through returns optimisation, and ANZ brands see the highest retention rate at 45%.

“Ecommerce brands face enormous challenges to maintain profitability in today’s economic climate,” said Hannah Bravo, CEO of Loop. “But Loop’s benchmark data shows that return fees are no longer taboo – they’re now the expectation as ecommerce matures. By investing in smarter sizing tools, optimising product detail pages, and delivering personalised return experiences, we’re confident the most proactive brands will emerge from this period of high costs stronger than ever.”

Loop’s report also found that merchants are tailoring return fees to their vertical industry to cover shipping costs, with some raising them on bulky items, like home goods, while others in competitive categories like accessories prioritising a low-friction customer experience. Likewise, more brands are embracing solutions like Checkout+, which allow shoppers to opt into return coverage at checkout for a nominal fee. These opt-in models are gaining traction with consumers to offset costs and are increasingly seen as a path to cost recovery without friction.

“The best brands aren’t avoiding returns, they’re leveraging them to improve the P&L,” said Alexis Perlmutter, Head of Data at Loop. “Our State of Ecommerce Returns Report shows that when brands automate returns, incentivise exchanges, and think strategically about the entire customer experience, they retain more revenue and gain repeat customers. This is a clear moment of transformation in ecommerce operations, and it’s being led by brands that treat post-purchase like a growth engine.”

2025 State of Ecommerce Returns Findings – At a Glance

• Return fees are now standard: 70.2% of merchants charge them (↑ from 65% in 2024)
• ANZ brands are more likely to charge return fees (73%), yet they also have the highest retention rate (45%)
• Exchange rates rose, with jewelry (+30% YoY) and intimates (+26% YoY) leading the way
• Cosmetics & personal care brands had the fastest return processing and highest loyalty
• Return rates varied by vertical: electronics fell 28%, apparel increased 8%, home goods more than doubled (+144%), and intimates declined slightly (-1%)

Returns Have Become a Brand Differentiator

In a year marked by tariffs, economic uncertainty, and logistics volatility, ecommerce brands are tightening return policies not to punish customers – but to better serve them. The report spotlights how flexible return policies, regional customization, and automated workflows are helping merchants turn returns from a cost centre into a retention advantage.

Download the Full 2025 State of Ecommerce Returns Report at: https://www.loopreturns.com/reports/benchmarks-2025/

About Loop

Loop is the industry’s leading commerce operations platform that empowers Shopify brands to streamline their entire customer journey, reduce friction, and maximise revenue. Its end-to-end approach integrates capabilities that help brands simplify their operations and delight customers, from initial orders to returns and exchanges. Offering features like Workflows, Instant Exchanges, Checkout+, and AI-powered tracking and visibility, Loop reduces costs, increases customer lifetime value, and retains revenue for more than 5,000 of the world’s most-loved Shopify brands. Loop has processed over 55 million returns and counting, and has helped merchants capture more than $2 billion in revenue over the past five years while delivering exceptional customer experiences. Learn more at www.loopreturns.com.

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KEYWORD: AUSTRALIA/OCEANIA AUSTRALIA

INDUSTRY KEYWORD: TECHNOLOGY TEXTILES ELECTRONIC COMMERCE SOFTWARE MANUFACTURING INTERNET FASHION SUPPLY CHAIN MANAGEMENT RETAIL ONLINE RETAIL

SOURCE: Loop

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PUB: 09/24/2025 07:00 PM/DISC: 09/24/2025 06:59 PM

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