Returns Management India — Cut Costs, Keep Customers
By GrowwwTech··3 min read
The Returns Problem in Indian D2C
Indian ecommerce return rates:
Category
Average Return Rate
Fashion/apparel
25-40%
Footwear
20-30%
Electronics
8-15%
Beauty/skincare
5-10%
Food/grocery
2-5%
Home decor
10-15%
For a fashion D2C brand doing ₹20L/month in revenue with a 30% return rate, returns cost ₹6L/month — that’s the reverse logistics, quality check, repackaging, and potential write-off for damaged goods.
Reducing Return Rate: Prevention Is Cheaper Than Processing
1. Better Product Pages
Detailed size charts with measurements in inches AND cm — ‘S/M/L’ isn’t enough. Show chest, waist, length measurements for each size.
Size recommendation quiz — ‘What’s your height? What’s your usual size in Zara/H&M?’ → recommend your brand’s equivalent size.
Multiple angle photos + video — Show the product from 5+ angles. Include a 360-degree video or a model wearing it.
Fabric/material closeup — Show texture, thickness, transparency. Reduces ‘not what I expected’ returns.
2. Accurate Product Descriptions
Don’t over-promise. If the fabric has slight texture variations (natural in handloom), say so.
Include honest disclaimers: ‘Color may vary slightly from screen to screen’
List exact dimensions for non-apparel products (bags, home decor, accessories)
Include weight — surprisingly important for bags, kitchenware, and decor items
3. COD Verification
COD orders have 2-3x higher return/RTO rate than prepaid orders
OTP verification on COD orders reduces fake orders by 60-80%
Small COD fee (₹30-50) nudges genuine buyers toward prepaid without losing them
Processing Returns Efficiently
Return Policy Best Practices
Clear, visible return policy — Link in footer, product page, and order confirmation. Hidden policies create angry customers.
7-15 day return window — Standard for Indian D2C. Longer isn’t necessarily better (increases return likelihood).
Easy return initiation — WhatsApp message or 1-click on website. Complex return processes don’t reduce returns — they create bad reviews.
Quick refund — Process refund within 3-5 business days of receiving the return. Slow refunds kill trust and future purchases.
The Exchange-First Strategy
Instead of default refund, offer exchange first:
‘Would you like to exchange for a different size/color?’ — This retains the revenue
Offer free shipping on exchanges (even if you charge for returns)
Brands using exchange-first approach retain 30-40% of return revenue
Make the exchange process easier than the refund process
Turning Returns Into Retention
Post-return follow-up — ‘We’re sorry it didn’t work out. Here’s 10% off your next order.’ 15-20% of returning customers will repurchase within 30 days.
Analyze return reasons — Track why customers return. If 40% say ‘size didn’t fit’, your size chart needs fixing, not your return process.
Quality check feedback loop — Returned items with defects → alert your manufacturer → fix the issue at source.
Need Help With Returns Management?
At Growww Tech, we help D2C brands reduce return rates and build efficient returns processes. Let’s optimize your returns.
