Free returns are becoming more common in the DACH region as retailers adjust to changing market conditions. According to a new study by the EHI Retail Institute, 60.6 percent of sellers in Austria, Germany, and Switzerland now cover return shipping costs completely, a significant increase from 49.2 percent last year. This shift indicates that many businesses are prioritizing customer retention over immediate savings.
Data from the “Shipping, packaging and returns management in e-commerce 2026” report shows a stabilization in overall return rates. Up to 66.7 percent of retailers have a maximum item-related return rate of 10 percent. The proportion of sellers with rates over 20 percent dropped to 23.6 percent, down from 25 percent in 2025. Despite this decline, the number of sellers reporting rising return rates has increased to 18.7 percent.
Niklas Stanislawski, the Logistics Project Manager at EHI, noted that the focus is shifting. “Higher return rates are declining this year, leading to a slight shift towards lower values,” he explained. “Overall, the focus of returns management is shifting from a general cost issue to targeted root cause analysis and differentiated control.” This approach suggests retailers are moving beyond simply accepting returns to understanding why they happen.
Fashion leads the industry in returns
Fashion remains the sector with the highest return rates. This year, 67.5 percent of fashion sellers reported rates exceeding 20 percent. While this figure is slightly higher than last year’s 65.3 percent, the number of sellers with rates above 50 percent has decreased. Conversely, the number of retailers seeing rates between 35 and 50 percent has risen.
Consumer electronics sellers have shown the most improvement. The percentage of electronics retailers with return rates of 10 percent or less jumped from 85.7 percent to 94.5 percent. Simultaneously, the share of sellers with rates over 20 percent fell to zero percent.
Cost analysis reveals that return shipping is the dominant cost driver. It accounts for 70.6 percent of returns processing costs. While inspection and refurbishment costs have dropped from 63.1 percent to 52.9 percent, they remain significant factors. For more than 33 percent of sellers, the costs of returns are up to 5 euros. Almost 20 percent reported costs between 5 and 10 euros. Another 15 percent mentioned costs between 10 and 20 euros. Just under 6 percent reported costs exceeding 20 euros.
Offering free returns has become a competitive necessity. Respondents cited customer satisfaction and loyalty as primary reasons for this policy. The share of sellers citing these factors rose from 54.5 percent last year to 76.2 percent this year. Additionally, 64.3 percent of sellers mentioned customer expectations and competitive advantage as key motivators.
