How to Set Up Returns for Your Business
Easy returns aren’t just a nice-to-have — they directly increase conversion rates. Shoppers check your returns policy before buying. Here’s how to set up a system that keeps customers happy without eating your margins.
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Why Easy Returns Boost Sales
Research from Narvar shows that 96% of shoppers would buy again from a retailer with an easy returns process. ASOS built its empire partly on free, frictionless returns. The stats are clear:
- 67% of shoppers check the returns page before purchasing
- Free returns increase average order value by 13–25%
- A confusing returns process costs you repeat business
Pre-Paid Return Labels
The simplest approach: include a printed return label in the outgoing parcel. The customer sticks it on the box and drops it at a collection point. You only pay for labels that are actually used.
Most courier comparison platforms (including Parcelfire) let you generate return labels in bulk. You can also create them through Royal Mail’s Online Business Account, DPD’s MyDPD portal, or Evri’s business tools.
Cost: You pay the standard shipping rate. Budget couriers like Evri offer return labels from around £2.50 for small parcels.
QR Code Returns (Paperless)
Increasingly popular and more convenient for customers. Instead of printing a label, the customer receives a QR code by email. They take the parcel to a supported drop-off point, scan the code, and the label is printed on-site.
- Evri: QR codes accepted at 7,000+ ParcelShops and via the Evri app
- InPost Lockers: QR code scan at 5,000+ lockers across the UK — 24/7 access
- Royal Mail: QR code returns via the Royal Mail app to any Post Office
QR returns are better for the environment (no wasted labels) and more convenient for customers without printers.
Tracking Returns
Tracking is essential — for you and the customer. Without it, you have no proof the item was returned, and the customer worries their refund will never come.
- Always use a tracked return service (even budget options like Evri include basic tracking)
- Send automated emails at key stages: label generated, parcel received, refund processed
- Set a clear timeframe: “Refunds processed within 3 working days of receiving your return”
Return Service Cost Comparison
| Service | Price From | Tracking | QR / Paperless |
|---|---|---|---|
| Evri Returns | £2.50 | Yes | Yes |
| InPost Lockers | £2.00 | Yes | Yes |
| Royal Mail Tracked Returns | £3.50 | Yes | Yes |
| DPD Returns | £5.00 | Full | Yes |
| Yodel Returns | £3.00 | Yes | Limited |
Integrating Returns with Shopify & WooCommerce
Both platforms have plugins and built-in features to automate returns:
- Shopify: Built-in returns management under Orders → Returns. Third-party apps like Loop Returns and Returnly add features like exchange-first flows and branded returns portals.
- WooCommerce: Use plugins like WooCommerce Returns and Warranty Requests or Return Refund and Exchange for WooCommerce to add a self-service returns portal to your site.
The goal is to let customers initiate a return without emailing you. Self-service reduces your support workload and speeds up the process.
Pro Tips for Reducing Return Costs
- Offer exchanges instead of refunds — you keep the sale and the customer stays happy
- Use detailed product photos, size guides and reviews to reduce “not as expected” returns
- Charge for returns on low-value items to discourage frivolous returns (but keep free returns on high-margin products)
- Analyse return reasons monthly to spot product or listing issues
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