[July Returns Series]: Returns Done Right - Lessons from Five Standout E-tailers

As July comes to a close, so does the height of e-commerce’s unofficial “returns season.” Over the past few weeks, we’ve explored the mounting complexity of this period from the sharp rise in wardrobing, bracketing and serial return behavior to the generational shifts driving new expectations around convenience and speed. We’ve looked at how these trends are placing unprecedented strain on reverse logistics networks, and why a coherent, forward-looking returns strategy is no longer optional, but essential.

Before closing the series, let's move from analysis to execution, spotlighting brands, marketplaces or e-tailers that aren’t just reacting to the problem but actively reshaping how returns work. These are concrete examples of (r)etailers that have turned reverse logistics into a lever for loyalty, operational advantage and, in some cases, real sustainability gains.

1. Mytheresa - Premium Returns Strategy for Premium Shoppers

Mytheresa heavily invests in technology to identify high‑spend, low‑return customers early in their lifecycle. Its algorithms analyze signals such as device type (iPhone/Mac), time of day, payment method, and first product category to forecast a customer’s long‑term value and return likelihood 

Customers tagged as “top-tier” receive enhanced return privileges such as flexible return windows and concierge service, while infrequent shoppers or serial returners may face more restrictive policies or incentives to reduce returns.

This nuanced approach ensures preferential treatment for the most valuable cohort, while managing reverse logistics costs more tightly across lower‑value segments.

Rather than cutting free returns outright, Mytheresa retains a high‑luxury experience with flexible return options. But behind the scenes, it invests in logistics infrastructure (such as dedicated return hubs and streamlined processing) that accelerate inspection, triage and restocking, minimizing the time returned items spend idle and preserving resale value.

Rather than a one-size-fits-all approach, return flows and processing speeds are calibrated to customer value tiers.

Mytheresa’s strategy clearly prioritizes customer lifetime value over one-time conversions. Top shoppers, while only ~3–4% of the base, account for ~40% of overall sales. These customers are less likely to return orders but when they do return, Mytheresa ensures a white‑glove experience to keep loyalty high.

Even as its marketing spend increases, Mytheresa maintains greater net-selling efficiency by reducing costs associated with return logistics while maximizing each return’s velocity through its systems. This helps preserve strong adjusted EBITDA margins (~7%) even in volatile luxury markets.

Mytheresa’s curated approach to returns extends beyond policy. Its VIP loyalty model includes options like personal shopper handling of returns, curated packaging or dedicated customer service expectations such as faster response times, priority shipping on re-sent items and seamless refunds. These practices make returns part of the luxury experience, not a pain point.

2. Zalando - Tech-Driven Returns at Scale

Zalando faces some of the highest return rates in the industry, up to 50 %, particularly in fashion and footwear. In response, the company has implemented a multi-layered returns strategy aimed at both reducing return volumes and streamlining operational efficiency.

In January 2025, Zalando tightened its policy by cutting the return window from 100 to 30 days for customers in Germany, the Netherlands, and Italy. This shift, timed with July’s peak season pressures, is designed to accelerate restocking and improve service turnaround, making returned items available to other customers sooner.

At the logistics level, Zalando uses a returns-on-demand aggregation model: returned items are consolidated locally before being routed to optimized hubs. The system includes branded return portals and automated triage tools that improve routing and reduce manual processing time. These improvements have led to a return experience that 90 % of customers rate as smooth and convenient.

From a prevention standpoint, Zalando is investing heavily in AI-powered size recommendation tools and computer vision systems. These technologies analyze customer purchase history, feedback, and fit data to reduce misorders at the source, which is especially critical since size-related issues account for roughly one-third of all returns.

Zalando is also exploring personalized return rules, differentiating policies for high-frequency returners versus trusted, high-value customers. This segmentation approach ensures cost control without sacrificing loyalty.

In short, Zalando’s returns strategy combines policy tightening, predictive technology and logistics optimization, turning a high-risk operational function into a structured, customer-centric advantage.

3. ASOS - Capping Serial Returns with Smart Segmentation

ASOS has adopted a nuanced, behavior-sensitive returns policy to stem its spiraling return costs, especially amid peak-season surges like July.

In October 2024, ASOS implemented a £3.95 return fee for customers identified as frequent returners unless they keep at least £40 worth of items in an order. Premier subscribers only need to retain £15 to avoid the fee. Although ASOS states that this applies to a small minority, industry estimates suggest such shoppers may account for nearly 6% of customers yet cause around a £100 m profit drag annually.

Under ASOS’s “Fair Use Policy,” accounts exhibiting “unusual patterns of returns activity” or returning seemingly worn items may face surcharges or outright bans. In mid‑2025, ASOS reportedly closed thousands of accounts, drawing criticism for abrupt enforcement even against long-time loyal customers. 

Although ASOS hasn't publicly detailed its logistics stack, reports indicate a streamlined return portal with mobile QR codes, dynamic category-based routing, and local drop-off partnerships that reduce transport distance and processing overhead. ASOS positions the fee as a necessary lever to maintain broader free return access for most shoppers.

4. Zappos - Trust & Loyalty as Returns Currency

Zappos offers an almost mythic example of return policy generosity paired with operational mastery, turning flexibility into a loyalty engine. Let's take a closer look. 

Zappos allows returns up to 365 days after purchase, a level of flexibility unmatched in much of e-commerce. Combined with free shipping, this eliminates virtually all consumer risk and fosters tremendous confidence.

Customers initiate returns via their online account, receive prepaid shipping labels and simply drop off packages. No repackaging or extra steps required. Return tracking is automated, with real‑time updates shared with the shopper.

Moreover, Zappos runs a dedicated return processing center, with trained staff inspecting, sorting and triaging items quickly. Products in near-new condition are instantly restocked; others may be refurbished or routed to other disposition channels. This dramatically reduces idle time and recoups value fast.

Customer feedback and return reasons feed into analytics loops that identify repeat issues (e.g. - sizing inconsistencies or product fit failures. These insights inform vendor selection, product design and shrinkage control).

By removing friction and instilling choice confidence, Zappos builds deep trust and repeat purchase behavior. Many customers state their loyalty stems largely from “feeling safe” buying (even expensive items!) because they can return anytime within a year.

5. Everlane - Return Bars & Smart Reverse Logistics

Everlane customers in the U.S. can return items through three options: mail-in, in-person at Everlane’s own retail stores, or at “Return Bar” locations (a network of over 5000!) without needing boxes or labels.

Returns are aggregated on-site and bulk-shipped to regional Return Hubs, where items are scanned, verified, bagged, sorted and palletized using patent-pending fraud detection systems. This model eliminates individual packaging and streamlines claims processing. Everlane integrates direct support with Drop‑off service teams using real-time collaboration, helping resolve questions or system issues instantaneously, improving return speed and reducing delays.

Shopper satisfaction is extremely high: 86% of customers opt for a Return Bar when offered.

In a two-year pilot, Everlane sought to optimize returns both operationally and sustainably. Results included a 49% reduction in damaged-second returns after integrating basic refurbishment—such as steaming or light cleaning—into the process. This allowed usable returns to re-enter inventory faster and lowered waste.

The program also prevented resale-waste by limiting overly large returns (orders of 10 items or more into single drops were restricted), optimizing pipeline cost-management. Customers paying for shipping via Everlane labels only incurs a $7 fee for individual returns.

By optimizing returns via Return Bars, Everlane preserves an efficient, customer‑friendly experience while minimizing waste, preserving product quality and reinforcing brand trust at peak volumes.

The Takeaway - What Do All These Brands Have in Common?

Policy Design Meets Behavior Management
Whether it’s return fees (Asos, Mytheresa), shortened windows (Zalando), or tiered eligibility, these brands fine‑tune policies to retain honest shoppers while discouraging abuse.

Tech-Enabled Portals and Aggregated Routing
Uniform across the board is the use of branded digital return flows - self‑service portals, QR codes, consolidated drop‑off routes (Zalando, Everlane, ASOS, Mytheresa) which speed up processing and control costs.

Customer Segmentation and Incentives
Smart segmentation (Mytheresa) allows differentiated experience: VIP shoppers keep perks, high-rate returners face fees or required purchase thresholds, balancing fairness and cost.

Speed and Process Efficiency
Whether via local consolidation (Zalando), drop‑off bars (Everlane), or internal logistics excellence (Zappos), rapid refunds and minimal downtime in stock movement directly feed customer satisfaction and loyalty.

Why These Examples Matter

These brands demonstrate that a forward‑looking returns strategy is about far more than re-selling. It's about building return systems that prioritize efficiency, transparency and consumer trust, especially during peak months like July. They show that returns can be a strategic customer touchpoint, not just a cost burden.

By coupling smart policies, tech‑powered portals and data-based segmentation, these retailers are turning reverse logistics into an agile tool - one that reduces abuse, protects margins and reinforces loyalty in the high-stakes returns season.

Sources: 

https://www.businessoffashion.com/case-studies/retail/ecommerce-online-returns-brands-retailers-logistics-shipping/

https://www.businessoffashion.com/events/retail/bof-masterclass-fashions-new-playbook-for-online-returns/

https://www.wsj.com/business/retail/mytheresa-ceo-michael-kliger-258f1b20

https://www.voguebusiness.com/story/sustainability/can-returns-ever-be-sustainable

https://www.theguardian.com/business/article/2024/sep/06/asos-charge-return-goods-fee

https://www.retailgazette.co.uk/blog/2024/09/asos-returns-fee/

https://www.opefir.agency/post/why-free-returns-boost-sales-the-zappos-asos-model