Why Returns Management Is Critical for eCommerce Success in 2025

Katherine Wroth • November 21, 2024
Handling returns remains one of the biggest challenges for merchants in the new year.


In 2024, eCommerce companies faced significant hurdles in managing returns. With $743 billion worth of merchandise returned in 2023, many retailers updated their returns policies to prepare for the year ahead. Now that peak season has ended, eCommerce merchants are navigating a surge of returns extending far beyond the holiday rush. Here are four key reasons why returns management is critical for e-commerce success in 2025.



1. Economic Uncertainty Drives Cost Management


With the current economic climate, retailers focus on balancing costs across supply chains, including returns management. Despite economic uncertainties, eCommerce sales are projected to grow faster than they have since 2021, accounting for 19.8% of total sales, the most significant increase since 2020, according to eMarketer. This surge necessitates balancing cost management and delivering exceptional customer experiences. Automating returns processes can unlock cost savings while retaining customer loyalty.


2. Consumer Behavior Shifts Increase Returns


Retail Dive reports that 87% of consumers intentionally order additional items to try on at home, returning the ones they don't want to keep. This practice, known as "bracketing," has become a common trend among shoppers. This behavior introduces unpredictability in margin calculations, inventory management and operations workflows. Notably, 64% of consumers make returns in apparel, shoes and accessories more often than any other product.


3. Implementing Return Fees and Customer Loyalty


Retailers are considering return fees to manage costs, which raises concerns about customer loyalty. Some merchants find that customers will pay reasonable return fees if the return experience is positive. Retailers must assess customers' price sensitivity and develop fee policies that balance cost management with customer satisfaction.


4. Preparing for Returns Fraud and Policy Abuse


Loop Returns research shows that returns fraud and policy abuse are rising, with 53% of US merchants citing returns fraud as a significant challenge. To combat this, retailers are tightening returns eligibility criteria and requiring more detailed information at checkout while striving to maintain positive returns experiences for loyal customers. Implementing eligibility tiers via loyalty programs can offer more lenient returns policies to loyal customers, helping protect against potential returns abuse.


Barrett Distribution's Approach


At Barrett Distribution, we understand the complexities of returns management during peak season. Our tailored solutions focus on cost-effective, customer-centric returns processes. By leveraging automation and data analytics, we help retailers navigate economic uncertainties, adapt to shifting consumer behaviors and implement effective policies to mitigate fraud and abuse.


As the peak season calms, partnering with a logistics provider experienced in returns management is essential. Barrett is committed to helping retailers optimize their returns processes, ensuring a seamless experience for businesses and customers.


Facing returns challenges? Contact us today for a complimentary supply chain consultation.

Recent Blog Posts

By Katherine Wroth December 9, 2025
FOR IMMEDIATE RELEASE Franklin, MA — Barrett Distribution Centers , a leading third-party logistics provider recognized for its expertise in eCommerce and omnichannel fulfillment, is proud to announce a new partnership with Maxwood Furniture to support its Western US DTC fulfillment operations. The partnership marks a significant milestone for Maxwood as the company continues to scale its nationwide distribution strategy. Maxwood Furniture is a global manufacturer of precision-engineered wood furniture with more than 20 years in the market. The company offers several distinct brands and product lines that ship from its US-based distribution centers or directly from its 1.3 million-square-foot factory in Vietnam. Maxwood serves retailers, design and procurement firms, hotel groups and turnkey project companies around the world. “We walked away from our visit to Barrett’s Montebello operations genuinely impressed with the visibility their systems provide,” said Heidi Germann , senior manager of operations at Maxwood. “Their integration, reporting and thoughtful approach to network design really stood out. Barrett’s geographic footprint fits where we’re headed and their team’s thoroughness helped us determine the best transition path.” After the initial transition, Barrett will begin planning a Dallas warehouse location to support Maxwood’s continued growth. “We are excited to partner with the Maxwood Furniture brand and team,” said Mark Healy , vice president of customer solutions at Barrett. “Our companies are aligned culturally and operationally, which creates a powerful combination to support Maxwood’s market-leading growth initiatives.” The launch is scheduled for mid December with outbound DTC order processing beginning shortly after. About Maxwood Furniture: Maxwood Furniture is a family-owned and operated import and wholesale business that designs, manufactures, and distributes solid wood furniture products across North America and around the globe. Our products are meticulously engineered in our fully accredited factory to meet or exceed US & EU safety standards. We manufacture using the latest equipment & best materials, including industrial-grade hardware, to create products that are made to last. Our customers range from designers to small independent & large retailers such as Rooms to Go, Jordan’s Furniture, and Bernie & Phyl’s. About Barrett Distribution Centers Since 1941, Barrett has provided customized third-party logistics (3PL), direct-to-consumer (DTC) eCommerce fulfillment, omnichannel distribution, managed transportation solutions and retail compliance for clients across all industries, with a focus on apparel & footwear, health & beauty, consumer packaged goods (CPG) and education. Barrett continues to be a leading 3rd party logistics provider in North America, known for superior execution, customer engagement and direct access to senior leadership decision makers. As a member of Inc's fastest growing companies list 15+ times, Barrett is big enough to do the job and still small enough to deeply care about your business. Brands interested in a new 3PL partnership may contact Barrett directly here . Official Release Here
By Katherine Wroth November 28, 2025
As a marketer, I can’t help but think about how much “fluff” is in advertising and how people are bombarded daily with thousands of generic messages. And as I begin my holiday shopping, it honestly hurts my soul knowing that dad is getting another set of generic socks, sister is getting another plain ceramic coffee mug, and mom is getting another non-stick pan that will end up with the hundreds she already has. Then I started noticing people line up for HOURS to get their bags monogrammed, their journals engraved, and their gifts wrapped with custom notes — and it hit me. Personalization is all about a feeling. The feeling that you thought deeply about someone when choosing a gift, and that it wasn’t just another HomeGoods candle regift (we’ve all been there — no judgment, but I am squinting). And yes, these are the things that keep me up at night. But on a larger scale, I’m always thinking about what brands could be doing better. And the data is in: personalization is one of the most effective ways to stand out. According to Salesforce, 78% of consumers are more likely to repurchase from brands that personalize their offerings , and Adobe reports that 52% of consumers now expect personalized offers from retail brands . What used to be a “nice touch” is now the expectation. Below are the personalization trends we see leading the charge this holiday season — many of which you’ll spot in our recent personalization workflow video. 1. Monogramming is having a moment Embroidery remains one of the most requested personalization services. It creates an emotional connection that gift shoppers love, and when it’s built directly into fulfillment operations, it avoids the bottlenecks brands often face. 2. UV printing is becoming a go-to for fast customization UV printing delivers a premium look quickly and works across a wide range of materials. It provides brands with the flexibility to offer personalization without compromising shipping promises. 3. Laser engraving continues to stand out for gifting Engraving adds depth, permanence, and a premium feel that elevates even simple products. With 86% of shoppers stating that personalization influences their purchasing decisions , engraving has become a strategic differentiator for gifting moments. 4. Debossing is rising in popularity for premium and corporate gifting The subtle, elevated finish resonates with shoppers seeking something that feels intentional and gives professional vibes. It also photographs beautifully, which matters when unboxing content drives discovery. 5. Handwritten notes still matter There’s nothing more human than a handwritten message. A simple note can turn a routine order into a moment worth sharing, and shoppers notice the effort. 6. Gift wrapping expectations are higher than ever Gift wrapping used to be a “nice-to-have." Shoppers want gifts to arrive ready to give, and they expect the wrap to match the quality of the item. When a 3PL integrates wrapping into its workflow, brands get consistency without sacrificing speed. 7. Kitting and curated sets are on the rise Gift sets and bundles remain one of the strongest trends of the season. Customers love the convenience and the elevated presentation, but behind the scenes, kitting requires organization and accuracy — especially during peak. That’s where strong fulfillment workflows matter. 8. Custom packaging shapes the unboxing experience Personalized tissue, belly bands, stickers, sleeves, and inserts transform a simple shipment into a brand moment. Deloitte found that 54% of consumers expect a personalized unboxing experience , and 70% say that custom packaging enhances their perception of a brand . Packaging is all about storytelling. Why personalization matters more this season Across retail, personalization drives: Higher repeat purchases Increased AOV Stronger first impressions Better loyalty More organic social content With 40% of consumers spending more than planned when they receive personalized experiences , the value is undeniable. The brands that stand out are the ones that can deliver personalization consistently, accurately, and quickly — especially when volume spikes. How Barrett brings personalized fulfillment to life Within Barrett facilities, personalization is an integral part of the operational workflow for many of our partners. Our teams support brands with: Monogramming and embroidery UV printing Laser engraving Debossing Gift wrapping Handwritten notes Custom packaging setups Kitting and bundling Real-time visibility and reporting Brands get the elevated customer experience they want without compromising speed or accuracy. Big plans for custom services next year? If your brand wants to introduce new custom services or scale the ones you already have, an experienced 3PL partner is non-negotiable. Contact us for a free personalization supply chain consultation today.
By Bryan Corbett November 3, 2025
Inbound Logistics Selects Barrett Distribution Centers as 2025 Top 100 3PL
More Posts