[July Returns Series]: Why Apparel and Footwear Retailers Brace for Impact in July
Key points
- Fashion items have the highest return rates in e-commerce, with 46% for apparel and 39% for footwear, and these figures can spike by an additional 60% during promotional periods like the July sales season.
- The financial impact of returns is substantial, costing retailers up to €15 per parcel and eroding 20-40% of the product's original price due to handling, transport, and depreciation.
- In response to rising costs, 66% of retailers now charge a fee for at least one type of return, a strategy that can reduce return rates by an average of 15-20%.
- Brands are investing in technology and logistics to manage returns more efficiently, using automated portals to cut processing times by up to 35% and local consolidation to reduce return shipping costs by as much as 40%.
With July well underway, the sales season is in full swing. From mid-season markdowns to end-of-line clearance, this is when carts fill fast… and returns pile up even faster. Behind the scenes, one area of e-commerce feels the strain more than any other: reverse logistics.
Retailers, particularly in the fashion and footwear space, face a perfect storm this time of year. High sales volumes, spiking return rates and rising operational costs put growing pressure on an already complex part of the supply chain.
If returns are the Achilles’ heel of e-commerce, July is one of the times throughout the year when the limp becomes most visible.
Returns surge in July - and retailers know it
Seasonal sales inevitably trigger a rise in product returns. Consumers rush to snag deals, often buying multiple sizes or colors with the full intention of returning some or most of them later. In the clothing and footwear segments, this behavior is especially pronounced.
According to the IPC 2025 Returns Report, fashion items have the highest return rates across all product categories:
- Apparel return rate: 46%
- Footwear return rate: 39%
These numbers climb even higher during discount-heavy periods like July, when shoppers make more impulse buys or stock up on seasonal styles they’re unsure about. The return motivation is simple: “It didn’t fit,” “I ordered more than one,” or “It looked different online.”
According to ZigZag Global’s 2024 data, the average return rate for fashion during promotional periods can spike by up to 60%, nearly doubling normal monthly rates. This seasonal volatility makes July and the holiday season the two biggest stress points for reverse logistics teams.

Reverse Logistics Under Strain
Reverse logistics is more than just putting a parcel back on a truck. It’s a highly coordinated process involving:
- Customer return initiation (often requiring self-service tools)
- Label creation and collection
- Transport and consolidation
- Condition assessment
- Repacking or disposal
- Refund or restocking processing
When return volumes triple over a short period, as they often do in July, the entire system faces bottlenecks. Labor shortages, limited warehouse capacity, and rising transport costs only make things worse.
For many fashion retailers, this directly impacts profitability. IPC reports note that the average cost of a return can reach up to €15 per parcel once all handling, transport, and restocking costs are factored in.
It is estimated that handling returns can cost fashion retailers 20-40% of the product’s original price, factoring in depreciation and additional processing fees, further squeezing margins. This means a €50 item could effectively cost the retailer €20 in return-related expenses.
Why Fashion Gets Hit the Hardest?
Fashion and footwear are uniquely exposed in the returns economy:
- Fit and feel cannot be tested online. This drives “bracketing” -ordering multiple sizes with the plan to return the ones that do not fit.
- Seasonality matters. A returned item in August may no longer be resellable at full price.
- Margins are tight. Fast fashion players often work with wafer-thin margins and can’t afford inefficient reverse flows.
- Finally, fashion buyers are among the most return-savvy.
According to an IPC 2025 survey, 61% of online shoppers say a retailer’s return policy influences where they buy clothing or shoes, and 52% will abandon a purchase if the policy seems unclear or costly. Convenience drives loyalty more than price discounts in many cases.
So how are brands adapting to the returns pressure?
1. Charging for Returns
Once taboo, charging for returns is becoming increasingly common. According to Landmark Global’s own research, 66% of retailers now charge for at least one type of return, especially in fashion. Brands like Zara, H&M, and Asos now apply return fees in select markets to offset rising reverse costs and discourage serial returners.
At what cost? According to a ZigZag’s 2023 Consumer Returns Report, retailers who introduced return fees saw an average 15-20% reduction in return rates, but risk alienating price-sensitive consumers.
2. Investing in Returns Technology
Retailers are embracing branded returns portals and APIs that allow shoppers to:
- Initiate returns online
- Choose convenient drop-off options (home pickup, lockers, post offices)
- Track the status of their return. This not only improves the experience but also helps retailers triage returns and route them more efficiently.
Brands using automated return portals reduce processing times by 25-35%, helping cut operational costs and improve refund speed.
3. Smarter Routing and Local Consolidation
Instead of shipping returns back to a central warehouse abroad, many retailers are consolidating returns locally within the destination country. This approach lowers transport costs, shortens refund cycles, and reduces the carbon footprint.
Local consolidation can reduce return shipping costs by up to 40%, while also decreasing carbon emissions linked to transport by approximately 30%.
4. Resale and Recycling Initiatives
Forward-thinking brands are turning returns into resale or upcycling opportunities. Items that cannot be restocked at full price are sold via outlet platforms or repurposed into new inventory. This keeps unsold returns from becoming waste and aligns with growing consumer demand for sustainability.
According to industry analysts, the global resale market is expected to reach € 65.22 billion EUR by 2025, with many fashion retailers tapping into this trend to recover value from returns.
Landmark Global’s Role in Return Success
At Landmark Global, we see July for what it is: not just a spike in sales, but a test of your returns infrastructure. That’s why our returns solution is built to absorb the pressure, especially for fashion and footwear clients. Key advantages include:
- Local drop-off: 154,000+ PUDO points worldwide
- Fast refunds: Efficient consolidation and parcel routing
- Custom returns portal: Full visibility and shopper control
- Grading and processing: Value-added services to speed up resale
Whether your returns policy is free, fee-based or hybrid, what matters most is that it works - for your margins and your customers.
Final Thought: July Is Just the Beginning
This article is part of a broader July series on returns. Why now? Because this is when everything from policy clarity to operational resilience is tested.
We’ll share deeper insights into regional return habits, technology’s role in streamlining returns, and how to make reverse logistics not just manageable, but profitable. Stay tuned!
You may also read:
- [July Returns Series]: Why Your Returns Strategy Matters More Than Ever
- [July Returns Series]: Luxury Industry Logistics - Navigating July's Challenges in E-Commerce
- [July Returns Series]: Returns Done Right - Lessons from Five Standout E-tailers
- [July Returns Series]: Wardrobing, Bracketing, Serial Returners - How Retailers Are Responding
- [July Returns Series]: Generational Dynamics in eCommerce Returns - How Age Shapes Behaviors and Policies
Sources:
https://www.zigzag.global/
https://www.ipc.be/
https://www.businessoffashion.com/
FAQ
What are the average return rates for clothing and shoes bought online?
According to the IPC 2025 Returns Report, fashion items have the highest return rates of all e-commerce categories. The average return rate for apparel is 46%, and for footwear, it is 39%. These rates can increase significantly during sales periods.
Why are returns such a big problem for fashion retailers?
Fashion returns are a major challenge for several reasons. First, customers cannot test the fit and feel of items online, leading them to "bracket" (buy multiple sizes to return later). Second, the high cost of processing a return can reach up to €15 per parcel, or 20-40% of the item's original value. Finally, returned seasonal items quickly lose their resale value.
Are online stores starting to charge for returns?
Yes, charging for returns is becoming a common practice. The article states that 66% of retailers now charge for at least one type of return method. Major brands like Zara, H&M, and Asos have implemented return fees in some markets to help offset reverse logistics costs and discourage excessive returns.
How can e-commerce businesses make their returns process more efficient?
Retailers are using several strategies to improve efficiency. These include investing in branded online returns portals to automate the process, which can cut processing times by 25-35%. They are also using local consolidation hubs to reduce return shipping costs by up to 40% and exploring resale or recycling programs to recover value from returned items that cannot be restocked.
How important is a return policy to online shoppers?
A retailer's return policy is highly influential, especially for fashion buyers. An IPC 2025 survey found that 61% of online shoppers say the return policy affects their decision to purchase clothing or shoes, and 52% will abandon their cart if the policy is unclear or seems costly.
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