DACH Region E-commerce Returns Management Report 2026 Reveals Shift Toward Customer-Centric Logistics
The e-commerce landscape across Germany, Austria, and Switzerland (the DACH region) is undergoing a significant transformation in how online retailers handle product returns. According to the latest findings from the EHI Retail Institute’s comprehensive study, "Shipping, packaging and returns management in e-commerce 2026," there is a discernible trend toward optimizing return processes through root-cause analysis rather than simply viewing returns as a prohibitive cost center. The study, which surveyed 108 prominent online retailers operating within the region, provides a detailed roadmap of how consumer expectations and operational strategies have shifted over the past 18 months.
Shifting Dynamics in Return Volume
During the summer of 2026, the data indicated that a substantial majority of retailers—approximately 66.7 percent—managed to maintain a maximum item-related return rate of 10 percent or lower. This is a notable benchmark in an industry that has long struggled with the logistics of reverse supply chains. Perhaps more importantly, the segment of retailers experiencing high return rates exceeding 20 percent saw a marginal decline, dropping to 23.6 percent from 25 percent in 2025.
However, the landscape is not uniformly improving for all merchants. The proportion of sellers reporting a year-over-year rise in their return rates increased from 14.7 percent in 2025 to 18.7 percent in 2026. This divergence suggests that while the overall "average" might be stabilizing, specific niches or business models are facing increased pressure from consumer behavior patterns, such as "bracketing"—the practice of ordering multiple sizes or colors with the intention of returning most items.
Industry-Specific Performance: Fashion vs. Electronics
The EHI report highlights a stark contrast between product categories, with the fashion industry remaining the most heavily impacted by high return volumes. Within this sector, 67.5 percent of sellers reported return rates exceeding 20 percent, a slight increase from 65.3 percent the previous year. Within this cohort, there has been a notable shift in the distribution of these returns: while the number of retailers facing extremely high return rates (over 50 percent) has decreased, there has been a corresponding rise in retailers reporting returns in the 35 to 50 percent range. This suggests a consolidation of return patterns within the mid-to-high range for fashion retailers.
In contrast, the consumer electronics sector has demonstrated remarkable efficiency improvements. In 2026, 94.5 percent of electronics retailers reported return rates of 10 percent or less, a significant jump from 85.7 percent in 2025. Furthermore, the share of electronics merchants dealing with high return rates (over 20 percent) plummeted from 4.8 percent to 0 percent. Industry analysts attribute this success to improved product description accuracy, better integration of high-resolution imagery and video, and more robust technical support systems that assist customers before they resort to a return.
The Return of Free Returns: A Strategic Pivot
Perhaps the most surprising finding in the 2026 report is the reversal of the "end of free returns" trend. For years, industry experts predicted that rising logistics costs would force almost all retailers to abandon free returns. Yet, the data tells a different story. In 2026, 60.6 percent of surveyed retailers covered return shipping costs entirely, a significant increase from 49.2 percent in 2025. Conversely, the number of retailers shifting the full financial burden of return shipping to the customer dropped from 18 percent to 10.6 percent.
This pivot is largely driven by a renewed emphasis on customer lifetime value (CLV) and brand loyalty. When asked why they continue to subsidize return shipping, 76.2 percent of respondents cited customer satisfaction and long-term loyalty as their primary motivators—up from 54.5 percent in the previous year. Additionally, 64.3 percent noted that free returns are now a baseline expectation for competitive parity, up from 60.6 percent in 2025. This suggests that in a crowded DACH e-commerce market, retailers are choosing to absorb logistics costs as a form of customer acquisition and retention marketing rather than as a pure operational expense.
The Financial Burden of Reverse Logistics
Despite the strategic focus on customer experience, the financial reality of processing returns remains a significant hurdle. Return shipping costs continue to be the primary driver of expense, cited by 70.6 percent of retailers. Secondary to shipping are the costs associated with inspection, cleaning, and refurbishment, which were identified as the main cost driver by 52.9 percent of retailers—a decrease from the 63.1 percent reported in 2025. This decline may indicate that retailers are becoming more efficient at automated inspection processes or are better at preventing returns through improved quality control before the goods leave the warehouse.
The granular cost breakdown reveals that for more than 33 percent of sellers, the processing cost per return is 5 euros or less. Nearly 20 percent of companies report costs between 5 and 10 euros, while 15 percent fall in the 10 to 20 euro range. A small minority of retailers, just under 6 percent, reported processing costs exceeding 20 euros per return, likely involving high-value or complex goods that require specialized labor to inspect and repackage.
Strategic Implications: Root Cause Analysis
"Higher return rates are declining this year, leading to a slight shift towards lower values. Overall, the focus of returns management is shifting from a general cost issue to targeted root cause analysis and differentiated control," explains Niklas Stanislawski, Logistics Project Manager at EHI.
This shift signifies a maturation of the DACH e-commerce sector. Rather than viewing the return rate as a static metric that must be reduced at all costs, retailers are increasingly utilizing data to understand why items are returned. By categorizing returns—whether due to sizing issues, product defects, or shipping damage—retailers are able to intervene at the source. For example, if data reveals a high return rate for a specific garment due to sizing, the retailer can update the size guide or integrate AI-driven sizing recommendations, thereby reducing the return rate without sacrificing the customer experience.
Broader Impact on the DACH Market
The findings suggest a complex, multi-layered environment for online merchants. The DACH region, known for its high consumer protection standards and a cultural preference for careful purchasing, has seen a stabilization in return rates that speaks to the efficiency of the regional logistics network. However, the competition for the consumer’s wallet has clearly intensified.
The move toward free returns, despite the high cost of fuel and labor, demonstrates that retailers are treating the reverse supply chain as a critical touchpoint in the customer journey. By making the return process as seamless as the purchasing process, companies are attempting to build the trust necessary to compete with global marketplaces that have long mastered the "customer-first" return experience.
Looking Ahead: 2027 and Beyond
As retailers move into the second half of the decade, the focus is expected to remain on technological integration. The rise of AI in customer support and predictive logistics will likely continue to impact the "cost per return" metric. Furthermore, sustainability is becoming an increasingly important variable in the returns equation. While not explicitly detailed as a primary cost driver in the 2026 report, pressure from environmental regulations regarding packaging waste and the carbon footprint of logistics is expected to influence how retailers structure their return policies in the coming years.
The 2026 EHI report confirms that the "return problem" is not a static challenge to be solved, but a dynamic variable to be managed. Retailers that successfully integrate root-cause analysis with a customer-centric return policy are the ones most likely to thrive in the competitive DACH e-commerce landscape. For those failing to adapt, the combination of high logistics costs and shifting consumer expectations poses a persistent threat to profitability. As the industry looks toward 2027, the focus will undoubtedly shift from simply "managing returns" to "optimizing the circular economy," where the return process is viewed as a vital component of the overall brand experience.
