Returns of products are a common occurrence when the store carries lower-quality items.

We must strive to minimize returns, as they can incur additional costs for delivery or product replacement. Not all returned items can be resold. If we do not have an agreement with the supplier for replacement or if we handle it ourselves, we must include the return costs in the selling price of the item.

A significant part of a store's credibility is also associated with the return period of products, which is why many stores extend the return period. Many online stores offer customers a 30-day return period, even though the statutory withdrawal period is shorter. Under EU consumer law, the customer can withdraw from a distance contract without giving a reason within 14 days of receiving the goods. They must send the goods back without undue delay and no later than 14 days after telling you about the withdrawal; the deadline is met if they dispatch the goods before it expires. You must refund the price together with the standard delivery cost no later than 14 days after receiving the notice of withdrawal; you may wait until you have received the goods or proof of dispatch.

The goods do not have to be unused or in the original packaging. The customer may test them as they could in a shop, and is liable only for any diminished value resulting from handling beyond what is necessary for that; if you did not inform them of the right of withdrawal, they are not liable for diminished value at all. Some goods cannot be returned: made-to-order items, perishable goods, sealed items that cannot be returned for health or hygiene reasons once opened, goods that are inseparably mixed with other items, sealed recordings and software once unsealed, and digital content the customer started downloading with express consent and acknowledgement; these exceptions do not apply if you have agreed otherwise with the customer.

Do not confuse three things: the right of withdrawal is different from the seller's statutory liability for the conformity of goods (two years from delivery) and from the manufacturer's voluntary guarantee. For repairs, the EU right-to-repair Directive (Directive (EU) 2024/1799, applying from 31 July 2026) mainly places obligations on manufacturers; what matters for you is that when the customer chooses repair, the seller's liability for conformity is extended by 12 months.

Under EU rules, sellers must offer a withdrawal function for contracts concluded through an online interface from 19 June 2026: a button labelled "withdraw from contract here" (or an equivalent unambiguous statement), followed by a confirmation labelled "confirm withdrawal". Check how your country is transposing it. More: Online store legislation in the EU.

By extending the return period, we can improve the credibility of the website, as customers prefer to buy items where they can inspect and return them if they are not satisfied. In an online store, it is advisable to conduct a test to see how an extended return period affects the number of returned items and sales growth and to find out whether it encourages website visitors to make a purchase sooner.

The return of items typically follows these steps:

  • The customer informs the seller about the return of the item, and the seller explains the return process in response (this information can be included with the shipment).

  • The customer sends the purchased items to the company's address or calls a pre-arranged delivery service to pick up the package (in online stores that offer this option).

  • The seller checks the returned item and issues a credit in the amount of the order (refund or store credit) if the item is in suitable condition for resale, and the item is returned to stock for future sales.

Many retailers consider ways to reduce the number of returns by making returns more difficult for customers through additional conditions and lengthy return procedures. However, we have found that such an approach can have a relatively negative long-term impact on sales, primarily due to customer dissatisfaction and, consequently, bad publicity generated by dissatisfied customers. Therefore, it is sometimes better to accept a return or exchange even if the customer missed the deadline or not all conditions are met, when the cost is smaller than the damage caused by bad publicity. Even better is to reduce returns with better descriptions, size tables and photographs: every return that does not happen is a saving.

Frequently asked questions

A clear and buyer-friendly return policy increases trust and reduces hesitation before purchase. Long or complex processes deter customers even before they buy.

Under the EU Consumer Rights Directive, the buyer has 14 days from receiving the goods to withdraw from the contract without giving a reason, and must send the goods back no later than 14 days after notifying the withdrawal. Many sellers offer 30 or more days - this increases trust and often reduces the actual number of returns.

By law the customer bears the cost of returning goods after withdrawal, unless you agreed otherwise or did not inform them about it (for defective or incorrectly delivered goods, you bear it). Free returns are a competitive advantage that reduces purchase hesitation, especially for clothing and footwear.

By implementing an RMA (Return Merchandise Authorization) extension in Magento. The buyer requests a return via their account, the seller confirms, and the buyer receives instructions. No manual email communication needed.

With better photos and descriptions (fewer surprises), a size guide, display of material behavior, and customer reviews that help buyers choose the right product. A good product page is the best prevention for returns.

Anže Voh
AuthorAnže Voh

My name is Anže, I am a certified Magento solution expert and the maker of several award-winning online stores. I am the architect of all Degriz projects.

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