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Operations · 5 min read

How to Handle eCommerce Returns Without Destroying Your Margins

28 April 2025

Australian eCommerce return rates average 15–30% depending on category. How you handle them directly affects your brand reputation and bottom line.

Why returns management matters

A smooth returns experience turns a negative moment into a loyalty opportunity. A painful one — slow processing, no communication, delayed refunds — pushes customers to competitors and generates chargebacks.

The key elements of a good returns process

A clear, easy-to-find returns policy. Simple lodgement for customers. Fast receipt and assessment of returned goods. Prompt refund or exchange processing. Accurate restocking of sellable returns into live inventory.

How Flow 3PL handles returns

We receive returned parcels, assess item condition against your criteria, restock sellable items back into live inventory immediately, and flag damaged stock for your review. All return activity is visible in your account dashboard in real time. Your customers get their refund faster. Your inventory stays accurate.

Pro tip

Build your return rate by category into your margin calculations from day one. Some categories (apparel, footwear) have structurally higher return rates — your fulfilment setup needs to account for this.

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