Playbook: Reduce Return Shipping Losses

This playbook shows you how to stop absorbing return shipping costs you shouldn't be paying — and recover margin on the costs you do pay.

The Goal

Make return shipping a controlled, visible cost — not an invisible line item that grows unchecked.

Step 1: Know What You're Spending

Go to Analytics > Shipping Costs and review:

• Total carrier cost — what you're spending on all return labels
• Average cost per shipment — your baseline
• Cost by carrier — which carriers are most expensive
• Cost by direction — inbound (customer → you) vs outbound (you → customer) vs inter-store
• Customer-paid vs merchant-paid — how much the customer contributes

If you haven't looked at this before, the number will surprise you.

Step 2: Stop Paying for Change-of-Mind Returns

Not every return deserves free shipping. Configure return methods by reason:

1. Go to Settings > Return Locations & Methods
2. Enable customer-paid return options (own courier, depot drop-off)
3. In your return reasons configuration, set change-of-mind reasons to NOT include free shipping

The rule: If the return is the customer's choice (not your fault), the customer should pay for shipping — or at minimum contribute.

Step 3: Use Carrier Surcharges Correctly

Go to Settings > Carrier Surcharges and configure:

• Destination surcharges for remote areas (WA, NT, TAS)
• Bulky item surcharges for oversized products
• DG surcharges for dangerous goods items
• SKU-specific surcharges for products with known high shipping costs

These are applied automatically during label generation and visible in your analytics.

Step 4: Choose the Right Carrier Per Shipment

Don't default to one carrier for everything. ReturnMate shows carrier prices side-by-side in the label generation modal.

Step 5: Use Remote Resolve to Avoid Shipping Entirely

Every return you resolve without a shipment saves you the full round-trip cost.

Use Remote Resolve when:

• The item value is less than the return shipping cost
• The fix can be done over the phone
• Replacement parts can be sent for less than a full return

Track your remote resolve rate in analytics. Every percentage point saved is direct margin recovery.

Step 6: Review Monthly

Set a monthly review rhythm:

1. Check Shipping Costs dashboard — any cost spikes?
2. Review cost by reason — are you paying for change-of-mind shipping?
3. Check carrier comparison — are you using the cheapest option?
4. Review remote resolve rate — can your team resolve more without shipping?

Related Articles

• Carrier Surcharges
• Return Locations & Methods
• Remote Resolve
• Reporting & Analytics