International returns in e-commerce: why they are becoming a board-level issue

Industry estimates suggest that in fashion marketplace environments, return rates may range between 30% and 80%. At the same time, platform policies define how returns are processed, how quickly sellers must respond and under what circumstances refunds may be issued automatically. For example, on Amazon, products priced below €25 / £20 may be eligible for refund without requiring the item to be returned. From 2025, sellers in Germany and the UK are required to respond to return requests within three days, after which the platform may issue a refund and charge the seller’s account.

These mechanisms indicate that returns are not solely a logistics matter. They are also shaped by marketplace rules.

Return rates and market structure

Return intensity varies significantly by category and sales model. In one European cross-border corridor, average return rates in 2025 were recorded at 2.8%, based on a dataset covering 502 internationally active sellers. The data suggests that cross-border trade does not necessarily result in elevated return volumes across all categories.

However, category composition matters. Marketplace-driven fashion segments typically report higher return ratios than categories such as home, beauty or garden. At the same time, return windows across Europe frequently extend beyond the statutory 14 days. In many markets, 30-day policies are common, and some retailers offer up to 60 days.

Extended return periods can support customer confidence, but they also prolong revenue settlement cycles and inventory uncertainty.

Paweł Zakielarz, Founder of Global24 and Shopreturns: “Return volume alone does not determine financial exposure. The duration of the return cycle and the platform’s refund framework often have a greater impact on liquidity.”

A moderate return rate processed quickly through local infrastructure may have limited financial impact. The same rate processed across borders under strict SLA requirements can have different implications.

Marketplace frameworks and seller exposure

Marketplace ecosystems incorporate return handling into broader seller performance metrics. In several European markets, local return addresses have become common practice. An analysis of 133 large online retailers across nine European countries indicates that in Germany approximately 70% operate with a local return address.

Sellers without local infrastructure may face higher reverse-shipping costs and, depending on platform policy, increased exposure to refund mechanisms.

On Amazon, this dynamic is visible through the “returnless refund” policy. When reverse transport is considered economically inefficient, the platform may reimburse the customer without requiring the product to be returned. For lower-value items, this mechanism can significantly affect margin recovery for sellers.

Wojciech Kotlicki, Director of Marketing at Global24 and Shopreturns: “Return management is increasingly connected to account performance metrics. It is not isolated from visibility or operational evaluation on marketplaces.”

The financial implications extend beyond transportation. They may include:

• loss of inventory value,
• accelerated refund timelines,
• extended capital lock-up in reverse logistics,
• and potential impact on seller performance indicators.

Liquidity and governance considerations

Cross-border returns introduce additional variables into the financial cycle. International transport, customs documentation in certain corridors and compliance verification may delay product re-entry into saleable stock. Meanwhile, refunds may be issued within predefined SLA windows.

When return windows extend to 30 or 60 days, inventory may remain economically unsettled for several weeks. The combination of delayed resale and time-bound refunds can influence working capital management.

Paweł Zakielarz, Founder of Global24 and Shopreturns: “In cross-border trade, return processing speed affects capital rotation. That makes return policy a financial planning consideration, not only an operational one.”

For boards overseeing international expansion, the discussion may therefore extend beyond return volume. Relevant questions include:

• What is the total cost per returned unit in each market?
• How do platform policies affect refund timing?
• How long does capital remain tied up in reverse flows?
• How do return handling metrics interact with marketplace performance indicators?

Cross-border commerce in many European corridors has reached operational maturity, and in some cases return rates remain moderate. However, the structure of return policies, SLA enforcement and marketplace frameworks suggests that international returns intersect with pricing strategy, liquidity planning and governance.

Returns may originate in logistics operations. Their broader impact is financial.

Company information

Global24 is a European logistics company specializing in cross-border e-commerce operations. For over 12 years it has supported online stores and marketplace sellers in international shipping, customs processes and market expansion across Europe. Shopreturns is a return infrastructure developed within the Global24 ecosystem that enables online stores to handle international returns through a network of local return addresses and processing hubs in Europe, helping reduce return costs and accelerate refund processing for cross-border sales.

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