Omnichannel

The hidden customer experience cost of returns: Why apparel brands must rethink reverse logistics

Returns are no longer a back-office function. For apparel brands, they represent a defining moment in the customer relationship.

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February 26, 2026 by Jonathan Briggs — SVP of Sales, ShipMonk

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For apparel brands, returns are often treated as a cost of doing business: an unavoidable byproduct of fit issues, fast-moving trends, and the shift from in-store to online shopping. But after years of working closely with brands, I've seen a larger issue hiding beneath the surface: returns are quietly eroding customer experience.

Most brands invest heavily in the moment of purchase and delivery. Returns, meanwhile, are often handled as an operational afterthought. The result is a fragmented experience that customers remember long after the refund is issued and influences whether they buy again.

That influence starts earlier than many brands realize. More than 80% of shoppers (ICSC) say return policies factor into their purchase decisions, and a majority will abandon a cart if the process feels inconvenient or unclear. For apparel, where fit uncertainty is common, returns act as a form of risk insurance. When the experience breaks down, through slow processing, poor communication, or unexpected friction, the damage isn't confined to operations. It shows up in conversion, trust, and repeat purchase intent.

As consumer expectations continue to rise, apparel brands need to rethink reverse logistics; not just as a cost center, but as a critical part of the customer journey.

Where returns go wrong and customers feel it

From a customer's perspective, returns should be simple: send the item back, get refunded, move on. But in practice, the experience is often slow, confusing, and frustrating.

Common pain points include, limited visibility into refund status, confusing instructions, inconsistent policies across channels, and long delays between when a return is shipped and when it's processed.

In many cases, these delays aren't accidental. Return fraud has increased, and brands that once issued refunds at carrier acceptance (when a package was dropped off or picked up) are now waiting until items are physically received and inspected. The result is a refund timeline that has stretched from one or two days to closer to nine or 10 on average.

Individually, these issues may seem minor. Together, they erode trust. Customers don't distinguish between customer experience and operations. If a return takes weeks to resolve, it keeps the brand, not the workflow, at fault.

Reverse logistics is now a front-line CX function

On the brand side, returns used to be relatively predictable. Today, they're anything but.

Apparel brands are navigating higher return rates driven by fit uncertainty, social commerce, faster trend cycles, and behaviors like bracketing, where customers order multiple sizes or styles with the intent to return most of them.

Despite that complexity, many organizations still treat returns as a downstream process, loosely connected to CX teams and minimally integrated with inventory planning. That gap shows up quickly: delayed refunds, increased customer service escalations, and inventory sitting idle while teams wait for decisions.

Weak reverse logistics doesn't just create cost. It creates avoidable CX failures.

Visibility changes the entire returns equation

One shift I'm starting to see gain traction is greater transparency at the point of return inspection. Instead of relying solely on reason codes or manual notes, some operators are moving toward standardized documentation, such as visual records captured when items are received and assessed.

That visibility changes the dynamic.. Teams can quickly validate whether an item is truly damaged, resellable, or potentially flagged for fraud. Customer service gains clarity when disputes arise. And most importantly, decisions that once took days of back-and-forth can happen faster, with more confidence.

The inventory impact is bigger than many brands realize

Returns are about more than refunds. They directly affect inventory velocity and profitability.

In apparel, timing matters. An item processed quickly can often be resold at full price. One that sits too long may need to be discounted, rerouted, or written off altogether. Across thousands of units, those delays add up.

Brands without clear workflows for grading, restocking, or reallocating returned inventory often develop blind spots that ripple through forecasting, replenishment, and assortment planning. This is especially damaging during peak periods, when inventory flexibility is already under pressure.

Strong reverse logistics allows returned items to re-enter the supply chain faster, supporting both margins and customer experience.

Returns policies still matter, but execution matters more

Many brands try to manage return costs through policy changes: shorter windows, stricter conditions, or paid returns. These levers can influence behavior, but they rarely solve the root problem.

A customer who receives a fast, predictable refund is far more forgiving of a stricter policy than one left waiting weeks with little communication. Generous policies paired with poor execution often backfire.

Practical steps apparel brands can take now

Rethinking reverse logistics doesn't require a full overhaul. In many cases, small, focused improvements deliver meaningful CX gains:

• Audit return timelines end-to-end. Identify where delays actually occur, not where teams assume they happen.
• Improve internal and external visibility. Ensure teams, and customers, can easily track return status and next steps.
• Align CX messaging with operational reality. Set expectations you can reliably meet, then communicate proactively.
• Use returns data as insight. Analyze patterns to uncover fit issues, quality concerns, or fraud risks early.
• Address sizing and fit upstream. Incorrect sizing remains the leading driver of apparel returns. Clearer size guidance, more consistent charts, and better communication around fit can reduce bracketing behavior and prevent returns before they ever enter the reverse logistics flow.

These steps won't eliminate returns, but they will reduce friction where it matters most.

Final thought

Returns are no longer a back-office function. For apparel brands, they represent a defining moment in the customer relationship.

Brands should treat reverse logistics with the same care and discipline as outbound fulfillment: turning a traditionally painful experience into one that reinforces trust.

About Jonathan Briggs

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