As US data shows, online shopping returns are soaring, while email continues to dominate ecommerce marketing. Can sellers leverage email strategies to reduce returns before they even happen?
Online shopping returns are hitting record highs, straining logistics, increasing costs, and cutting into profit margins. Returns cost retailers billions annually, not just in lost revenue but also in shipping, restocking, and fraud-related losses.
Amazon sellers report an increase in serial returners, fraudulent claims, and policy loopholes that hurt their bottom line. With Amazon’s customer-first approach, sellers often have little control over these issues.
Given email marketing’s proven ability to engage consumers, can sellers strategically use it to reduce and prevent product returns?
Online Shopping Returns are soaring globally
Online shopping returns are skyrocketing, creating challenges for retailers and adding pressure on logistics networks. According to recent data from Statista Consumer Insights, nearly half of U.S. online shoppers returned at least one item in the past year. The trend is even more pronounced in India (81%) and China (66%), where returns have become a routine part of ecommerce.
A growing problem for retailers
As more consumers shop online, returns are becoming a major concern. High return rates cut into retailer profits, increase shipping costs, and contribute to environmental waste. The issue is especially prevalent in Germany and the United Kingdom, where over 50% of online shoppers reported returning products.
EMARKETER, US Retail Ecommerce Returns 2025"Ecommerce returns continue to pose a major challenge to retailer profitability as more sales move online and returns abuse and fraud continue to rise."
Return fraud also on the rise
According to a Forbes article, independent sellers are facing a surge in fraudulent returns, which is cutting into already thin profit margins and creating new operational challenges.
Sellers are reporting two major patterns of fraudulent returns. Some customers return used or damaged items while claiming they arrived in that condition.
Others send back completely different products while insisting they are the original purchase. These tactics have made it difficult for sellers to protect their businesses, especially as Amazon’s customer-friendly policies often side with buyers.
For some sellers, return abuse is reaching crisis levels. Trucking Depot, an Amazon merchant specializing in cargo control products, expects to receive 110 fraudulent returns in 2024, marking a 144% increase from the previous year. Repeat offenders are also a problem. Complogics, a car charger seller, reports doubling repeat offenders.
The cost of returns abuse
Return fraud is not just about lost product value. Sellers also face added costs in shipping, labor, and restocking.
Many sellers using Fulfillment by Amazon (FBA) have little control over returns since Amazon handles inventory. This lack of oversight makes it difficult to contest fraudulent claims, and some sellers have even had their product listings suspended due to repeated false claims of “inaccurate descriptions.”
For merchants using Fulfillment by Merchant (FBM), return fraud presents a different challenge. While they have more control over their inventory, they also face higher operational costs and must manually inspect each return—further increasing expenses.
Amazon’s response
Amazon acknowledges the issue but maintains that it has “no tolerance for fraudulent returns.” The company has invested in specialized teams to detect and prevent abuse. It also allows sellers to file claims through Seller Central, though some merchants argue that the system does not adequately protect them from repeat offenders.
Email campaigns drive ecommerce sales, data shows
Omnisend’s latest ecommerce marketing report analyzed 24 billion emails, 230 million SMS messages, and 413 million push notifications sent in 2024.
Email campaigns are more effective than ever
According to the report, email campaign click-to-conversion rates jumped by 27.6% in 2024. Automated messages proved especially effective, with one in three people who clicked on an automated email making a purchase—compared to just one in 18 for scheduled messages.
Even though automated emails accounted for only 2% of total email volume, they drove a staggering 37% of sales. Similarly, SMS and push campaigns showed high engagement rates, delivering 18% and 15% of sales from just 9% and 3% of total messages, respectively.
How email marketing can help reduce returns
Beyond sales, strategic email campaigns could also play a key role in reducing return rates. According to WebFX, email campaigns not only drive sales and customer engagement but can also help reduce returns by setting clear expectations, improving post-purchase support, and strengthening customer relationships.
Using email marketing to prevent returns
Many returns happen because customers feel unsure about their purchases or receive products that don’t meet their expectations. Sellers can use email campaigns to clearly communicate their return policies, ensuring customers understand the process and reducing unnecessary returns.
Analyzify, Online Shopping Trends 2025: What’s Really Going On?"Return policies play a crucial role in building trust and encouraging purchases."
Here’s how sellers can use email marketing effectively:
- Automated Review Requests – Sending post-purchase emails asking for feedback helps sellers identify common issues and improve product descriptions.
- Building a Subscriber List – Unlike Amazon-controlled communication, having a direct subscriber list allows sellers to educate and engage customers on product benefits.
- Promotional Emails – Keeping customers informed about new products, updates, and exclusive deals encourages repeat purchases and builds trust.
- Drip Campaigns – Targeted emails for new subscribers and specific products can answer common questions, reducing buyer’s remorse.
- A/B Testing – Testing different email formats helps improve open rates and ensures customers receive the right messaging.
Using emails to communicate with customers
Sellers can either partner with an Amazon agency that offers email marketing services or use email marketing software to automate campaigns and track customer engagement. These tools help sellers send personalized, timely messages that educate customers and reduce unnecessary returns.
Reducing high return rates on Amazon
High return rates hurt profits and account health. Here are other ways sellers can tackle the issue:
Place an Order Yourself – Experience your product as a customer to spot issues with packaging, quality, or shipping.
Compare Return Rates – A 9% return rate may be normal in some categories. Benchmark against competitors before taking action.
Improve Packaging & Inserts – Upgrade packaging to prevent damage and include inserts with customer support info to reduce returns.
Track & Set Return Rate Benchmarks – Monitor returns monthly. If rates exceed 11%, investigate further.
Leverage UGC & Ads – Use TikTok UGC videos and ads to set clear product expectations and reduce “not as expected” returns.
