What is the average return rate for a Shopify store?

The average return rate for Shopify stores aligns with broader ecommerce benchmarks, landing around 17-20% of items sold. That means roughly one in five products is sent back. Tracking this figure in Shopify’s “Orders and returns by product” report lets you spot problems early and react fast.

However, return rates vary dramatically by industry—apparel stores see returns as high as 30-40%, while electronics typically hover around 8-10%. Understanding where your store fits within these benchmarks is crucial for setting realistic expectations and identifying optimization opportunities.

Numbers at a glance

• 17-20% average return rate for Shopify stores (2025)
• 30-40% return rate for apparel & fashion stores
• 15-20% return rate for home & garden products
• 8-10% return rate for electronics
• 24.5% projected overall ecommerce return rate for 2025
• $890 billion in returned merchandise value (U.S. retail, 2025)
• 65% of returns happen within 30 days of purchase

What counts as a “return” in Shopify?

Understanding how Shopify categorizes returns is essential before diving into calculations and benchmarks.

Refund vs exchange vs store credit

Refunds represent the complete reversal of a transaction—the customer gets their money back, and you reclaim the inventory. These directly impact your return rate calculations and cash flow.

Exchanges involve swapping one product for another of equal or different value. While these don’t always count as “returns” in traditional metrics, they still represent fulfillment costs and potential inventory challenges.

Store credit provides customers with future purchasing power instead of cash refunds. This approach helps retain revenue while still addressing customer dissatisfaction.

Where Shopify logs returns in reports

Shopify tracks return data across multiple report sections. The primary location is the “Orders and returns by product” report, accessible through Analytics > Reports. This report shows returned quantities, refund amounts, and return reasons when properly configured.

Returns also appear in your order timeline, customer profiles, and financial reports. However, the product-level return report provides the most actionable data for calculating and analyzing return rates.

The current average return rate on Shopify

Shopify return rates mirror broader ecommerce trends while showing distinct patterns based on store category, seasonality, and customer behavior. Understanding these benchmarks helps you evaluate your performance and set realistic improvement targets.

Overall ecommerce benchmark (17-20%)

Current industry data shows Shopify stores typically experience return rates between 17-20%, consistent with broader ecommerce trends. This figure represents the percentage of sold items that customers return within your specified return window.

The 2025 ecommerce landscape shows an upward trend in returns, with the overall average projected to reach 24.5%—up from 20.4% in 2024. This increase stems from changing consumer behaviors, including “bracketing” (buying multiple items to try and return some) and more lenient return policies.

Shopify-specific app data snapshot

Return management platforms serving Shopify merchants report similar figures. ReturnZap’s 2025 data shows their Shopify clients averaging 18.3% return rates, while Loop Returns reports 19.1% across their merchant base.

These app-based insights provide valuable context because they represent active Shopify stores using professional return management systems—typically more established businesses with higher order volumes.

Seasonal & holiday spikes

Return rates spike significantly during holiday periods. November through January sees return rates climb 35-50% above baseline levels, with post-holiday returns peaking in early January.

Key seasonal patterns include:

• Black Friday/Cyber Monday: 25-30% return rates
• December gift purchases: 40-45% return rates
• January returns: Peak month with 2-3x normal volume
• Back-to-school (August): 20-25% increase in apparel returns

Category breakdowns

Return rates vary dramatically by product category, making industry-specific benchmarks crucial for accurate performance assessment.

Category	Average Return Rate	Primary Return Drivers
Apparel & Fashion	30-40%	Sizing, fit, style preferences
Home & Garden	15-20%	Size/space issues, quality expectations
Beauty & Personal Care	12-18%	Skin reactions, color mismatches
Electronics	8-10%	Defects, compatibility issues
Sports & Outdoors	15-25%	Fit, performance expectations
Jewelry & Accessories	20-25%	Size, style, quality concerns
Books & Media	5-8%	Condition, content expectations

How to calculate your store’s return rate step-by-step

Accurate return rate calculation requires the right data sources and methodology. Shopify provides several reporting options, but knowing which metrics to track and how to interpret them ensures you’re making decisions based on reliable information.

Using Shopify’s “Orders and returns by product” report

Navigate to your Shopify admin dashboard and follow these steps:

1. Go to Analytics > Reports
2. Select Orders and returns by product
3. Set your desired date range (recommend 90-day periods for accuracy)
4. Export the data or note the “Returned quantity” and “Net quantity” columns
5. Apply the formula: (Returned quantity ÷ Net quantity) × 100

This method provides product-level granularity, helping you identify which SKUs drive higher return rates.

Manual formula with example workbook

The basic return rate formula is straightforward:

Return Rate (%) = (Total Items Returned ÷ Total Items Sold) × 100

Example calculation:

• Items sold in October: 1,000 units
• Items returned in October: 180 units
• Return rate: (180 ÷ 1,000) × 100 = 18%

For more sophisticated analysis, track returns by cohort—matching return dates to original purchase dates rather than using the same time period for both metrics.

Segmenting by customer type (first-time vs repeat)

Customer segmentation reveals important patterns in return behavior:

First-time customers typically show higher return rates (22-28%) due to unfamiliarity with your sizing, quality, or brand positioning.

Repeat customers generally have lower return rates (12-18%) because they understand your products better and make more informed purchases.

To segment in Shopify, export customer data alongside return information and use pivot tables or analytics tools to identify patterns by customer purchase history.

Common reporting pitfalls to avoid

Time period mismatches: Don’t compare returns in January to sales in January—many January returns stem from December purchases.

Incomplete data: Ensure you’re capturing all return types, including exchanges and store credit redemptions.

Sample size issues: Avoid calculating return rates on fewer than 100 orders, as small samples create misleading percentages.

Seasonal bias: Don’t use holiday periods as your baseline—they skew significantly higher than typical months.

Why returns happen: Top 7 drivers

Understanding the root causes of returns is essential for developing targeted reduction strategies. While every store faces unique challenges, these seven factors consistently drive the majority of ecommerce returns across all categories and platforms.

Sizing & fit issues (apparel)

Sizing problems account for 60-70% of apparel returns. Inconsistent sizing charts, poor fit descriptions, and lack of detailed measurements drive customers to order multiple sizes or return items that don’t fit as expected.

Product not as described

Discrepancies between product descriptions, photos, and reality create 25-30% of returns across all categories. This includes color variations, material quality differences, and functionality gaps.

Damage in transit

Shipping damage represents 8-12% of returns, varying by product fragility and packaging quality. Electronics and home goods show higher damage-related return rates than soft goods.

“Bracketing” behavior

Modern consumers increasingly buy multiple versions (sizes, colors, styles) with the intention of keeping one and returning the rest. This behavior drives 15-20% of fashion returns and is growing across categories.

Fraudulent/wardrobing

Return fraud, including “wardrobing” (using items temporarily before returning), accounts for 5-10% of returns. This includes customers who wear clothing to events or use electronics temporarily.

Fulfillment errors

Wrong items, incorrect quantities, or missing components drive 10-15% of returns. These operational errors are often the most preventable category of returns.

Late delivery & missed events

Time-sensitive purchases (gifts, event wear, seasonal items) that arrive late generate 8-12% of returns, particularly during holiday periods and wedding seasons.

12 proven ways to reduce your Shopify return rate

Reducing returns requires a multi-faceted approach targeting the most common causes while maintaining customer satisfaction. These strategies have proven effective across thousands of Shopify stores, with many seeing 20-40% reductions in return rates when implemented systematically.

Improve size & fit guidance (interactive sizing, reviews)

Implement detailed sizing charts with body measurements, not just garment dimensions. Add customer review sections specifically for fit feedback, and consider size recommendation tools that analyze customer data to suggest optimal sizes.

Interactive fit guides reduce sizing-related returns by 25-40% according to fashion retailers using these tools.

Upgrade product photography & 3D/AR

High-quality photos from multiple angles, lifestyle shots showing scale, and 360-degree product views significantly reduce “not as described” returns. Shopify’s AR features let customers visualize products in their space, particularly effective for furniture and home decor.

Stores using comprehensive visual content see 15-30% fewer returns related to appearance expectations.

Tighten QC & packaging

Implement quality control checkpoints before shipping and invest in protective packaging appropriate for your products. Document common damage patterns and adjust packaging accordingly.

Improved QC and packaging typically reduce damage-related returns by 40-60%.

Offer easy exchanges over refunds

Make exchanges more attractive than refunds through streamlined processes, free exchange shipping, or exchange-only promotions. This retains revenue while addressing customer dissatisfaction.

Stores prioritizing exchanges over refunds often see 20-30% of potential returns convert to exchanges instead.

Paid vs free returns strategy

Consider charging modest return fees ($5-15) to discourage frivolous returns while maintaining customer satisfaction. Alternatively, offer free returns only for defective items or first-time customers.

Paid return policies can reduce return rates by 15-25% while maintaining customer loyalty when implemented thoughtfully.

Automate RMA workflow

Return management apps streamline the return process, provide better data tracking, and often include features to encourage exchanges or store credit over refunds.

Proactive post-purchase comms & tracking

Send detailed care instructions, usage tips, and proactive shipping updates. Address common concerns before they become return reasons through targeted email sequences.

Proactive communication can reduce returns by 10-20% while improving customer satisfaction.

Customer education & FAQs

Comprehensive FAQ sections, video tutorials, and detailed product information help customers make informed purchases. Address common return reasons directly in your product descriptions.

Well-educated customers return products 15-25% less frequently than those making uninformed purchases.

Personalized fit recommenders / AI apps

AI-powered recommendation engines analyze customer data, purchase history, and preferences to suggest products more likely to satisfy individual customers.

Personalization tools can reduce returns by 20-35% while increasing average order values.

Blacklist serial returners ethically

Identify customers with excessive return rates (>50%) and implement policies like restocking fees, return limits, or account restrictions. Handle this sensitively to avoid discrimination issues.

Managing serial returners can improve overall return rates by 5-10% while protecting profit margins.

Introduce try-before-you-buy with limits

Offer trial periods for specific products or customer segments, with clear terms about condition requirements and time limits. This works particularly well for premium or complex products.

Try-before-you-buy programs often reduce returns by 30-50% for participating products.

Sustainability incentives (donate/resell programs)

Partner with donation organizations or resale platforms to give customers alternatives to traditional returns. Offer incentives like store credit for choosing sustainable options.

Sustainability programs can redirect 10-20% of returns while building brand loyalty and reducing processing costs.

Monitoring progress: KPIs beyond return rate

While return rate provides a crucial baseline metric, comprehensive returns management requires tracking multiple interconnected KPIs. These additional metrics help you understand the full impact of returns on your business and identify optimization opportunities that pure return rate might miss.

Refund rate

Track the percentage of returns that result in cash refunds versus exchanges or store credit. Lower refund rates indicate better customer retention and revenue preservation.

Exchange rate

Monitor how many returns convert to exchanges. Higher exchange rates suggest customers like your brand but had specific product issues.

Cost per return

Calculate the total cost of processing returns, including shipping, labor, and inventory impacts. This metric helps justify investments in return reduction strategies.

Net Promoter Score post-return

Survey customers after return experiences to understand satisfaction with your return process. Positive return experiences can actually increase customer loyalty.

Frequently asked questions about Shopify return rates

Is 25% return rate unsustainable?

A 25% return rate isn’t necessarily unsustainable, but it requires careful margin management. Focus on your category benchmarks—25% might be excellent for apparel but concerning for electronics. The key is understanding your unit economics and implementing strategies to reduce returns while maintaining customer satisfaction.

How often should merchants audit return data?

Review return data monthly for trends and quarterly for strategic decisions. Weekly monitoring during peak seasons helps identify emerging issues quickly. Set up automated alerts for return rate spikes above your normal range.

Does charging for returns hurt conversion?

Modest return fees ($5-15) typically don’t significantly impact conversion rates when clearly communicated. However, free returns can increase conversion by 20-30% for new customers. Consider offering free returns for first-time buyers or orders above certain thresholds.

What’s an acceptable return window?

Most successful Shopify stores offer 30-60 day return windows. Shorter windows (14-21 days) can reduce return rates but may hurt conversion. Longer windows (90+ days) increase returns but can improve customer confidence and lifetime value.

Should stores accept returns on sale items?

Many stores exclude final sale items from returns to protect margins on discounted inventory. However, allowing returns on sale items can increase conversion rates during promotional periods. Consider offering store credit only for sale item returns as a compromise.

How do merchants handle international returns?

International returns are complex and expensive. Many stores offer store credit only for international returns, require customers to pay return shipping, or partner with local return services. Clearly communicate international return policies before purchase to avoid disputes.

Can stores refuse returns from serial returners?

Yes, but proceed carefully. Document excessive return patterns (typically >50% return rate) and implement policies like restocking fees or return limits. Ensure your terms of service cover this scenario and avoid discriminatory practices.

What’s the difference between return rate and refund rate?

Return rate measures all items sent back (including exchanges), while refund rate only counts items that result in money back to customers. A store might have a 20% return rate but only a 12% refund rate if many returns become exchanges.

How do returns affect Shopify analytics?

Returns reduce net sales figures and can impact metrics like average order value. Shopify’s analytics account for returns in most reports, but always verify you’re looking at “net” rather than “gross” figures when analyzing performance.

Should merchants offer returnless refunds?

Returnless refunds work well for low-value items where return shipping costs exceed the product value. This improves customer satisfaction while reducing processing costs. Set clear thresholds (typically under $15-25) and monitor for abuse patterns.

Sources & references

• Red Stag Fulfillment – Average Return Rates for Ecommerce — Industry benchmarks by category (2025)
• Return Prime – E-commerce Return Trends — 2025 return rate projections and consumer behavior analysis
• Mailmodo – Ecommerce Return Statistics — Comprehensive return data across platforms
• BeProfit – How to Calculate Product Return Rate — Shopify-specific calculation methods
• Loop Returns Blog — Return management best practices and reduction strategies