In the fast-paced world of commerce, returns are no longer a side note—they are a defining feature of customer experience and business efficiency. From fashion and electronics to FMCG and homeware, every industry battles unique challenges in managing returns effectively. Understanding how your returns ratio compares across sectors is crucial to refining your reverse logistics and strengthening your logistics and supply chain management.
Returns management has evolved from being a reactive process to a strategic component of the value chain. But how do you know if your returns performance is on par with your peers? This is where benchmarking becomes essential.
Understanding Returns Ratios
The returns ratio is typically defined as the percentage of sold items that are returned by customers within a specific period. While this metric might sound simple, it becomes a powerful tool when evaluated across time, product categories, customer profiles, and most importantly, industries.
A high returns ratio can drain resources, increase carbon footprints, and frustrate operations. A low one, conversely, may indicate either exceptional fulfilment or restrictive return policies that deter customers.
Returns management is no longer just about processing refunds. It's about creating a loop in your logistics and supply chain management that adds value—whether through reselling, refurbishing, or recycling returned items.
Why Benchmarking Matters
Returns benchmarking allows businesses to:
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Identify gaps and inefficiencies in reverse logistics
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Set realistic performance goals
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Optimise inventory planning and warehousing
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Enhance customer satisfaction while maintaining operational efficiency
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Manage seasonal return peaks more strategically
In the MENA region, where e-commerce is expanding rapidly, understanding return trends across industries is vital. Local nuances like COD (cash on delivery) and evolving consumer expectations add further complexity.
Let’s break down returns ratios across key industries and identify what best-in-class looks like.
Retail Fashion and Apparel
Average Returns Ratio: 25% – 40%
This sector sees some of the highest return rates globally. The reasons are clear: size inconsistencies, colour variations, impulse buying, and generous return policies. Online fashion retailers, particularly in the GCC, have leaned into BORIS (Buy Online Return In-Store) and reverse logistics automation to manage this influx effectively.
Benchmark Best Practices:
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Leverage AI sizing tools to reduce mismatch
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Introduce dynamic returns policies based on customer behaviour
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Use Omniful’s inspection and grading module to quickly assess returned items for resale viability
Consumer Electronics
Average Returns Ratio: 10% – 15%
Returns in electronics often stem from defects, delivery damage, or buyer remorse after high-value purchases. Given the higher costs of reverse logistics in this sector, returns benchmarking helps minimise unnecessary returns through better product education and packaging.
Benchmark Best Practices:
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Implement automated RMA (Return Merchandise Authorisation) workflows
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Provide detailed product manuals and unboxing videos
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Use Omniful’s real-time inventory adjustments to manage restocks instantly
Home & Furniture
Average Returns Ratio: 5% – 10%
Due to the bulk and cost of shipping, home and furniture items tend to have lower return rates. However, when returns occur, they are complex, expensive, and often result in write-offs.
Benchmark Best Practices:
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Offer virtual room simulators to reduce mismatched expectations
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Automate pick-up logistics through a TMS like Omniful’s
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Grade returned furniture for secondary sales or refurbishment
Health and Beauty
Average Returns Ratio: 3% – 8%
This category is sensitive due to hygiene and expiry concerns. In the MENA region, returns are particularly low due to strict consumer protection laws and retailer policies.
Benchmark Best Practices:
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Track batch and expiry data via integrated WMS tools
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Clearly communicate non-returnable policies
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Use automation to manage partial refunds or exchanges when allowed
Grocery and FMCG
Average Returns Ratio: 1% – 5%
Highly perishable, grocery returns are rare but can have significant operational impacts. Returns often arise from damaged goods or delivery errors.
Benchmark Best Practices:
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Enable real-time tracking of delivery anomalies
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Use AI-powered demand forecasting to reduce overstocking
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Manage returns through doorstep flows with reverse logistics support
B2B Industrial Supplies
Average Returns Ratio: 2% – 6%
Returns in this space are often due to specification mismatches or procurement errors. With large volumes and less focus on customer-centricity, efficient returns management can yield significant cost savings.
Benchmark Best Practices:
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Enable barcode-based returns processing
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Leverage centralised hubs for cross-docking and faster reallocation
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Monitor returns performance via integrated KPIs and dashboards
Unlocking Strategic Value Through Reverse Logistics
Returns are no longer just about processing—they’re an opportunity. Done right, reverse logistics can unlock operational savings, boost sustainability metrics, and strengthen customer retention.
Solutions like Omniful’s Returns Management system automate everything from doorstep pick-ups to refund integration. For omnichannel businesses, enabling Buy Online, Return In Store (BORIS) and integrating returns across POS, WMS, and OMS is a game-changer.
Key functionalities include:
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Reverse logistics flow for doorstep and hub returns
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Inspection and grading of return items
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Credit memo and refund syncing with marketplaces
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Real-time performance tracking
Data-Driven Returns Optimisation
Returns benchmarking isn’t static. It’s a dynamic, ongoing process that relies on consistent data collection and performance analytics. With Omniful, businesses gain access to:
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Real-time dashboards tracking return trends
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Predictive analytics to forecast return volumes by SKU or location
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API access for custom reports and integration into BI tools
This allows businesses to simulate return scenarios, assess policy changes, and measure the financial impact of return strategies.
Creating a MENA-Centric Returns Strategy
Returns management in the MENA region requires cultural and logistical nuance. High COD rates, regional regulations, and infrastructure limitations must all be accounted for. Retailers and fulfilment providers must prioritise:
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Multilingual support in return flows
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Integration with local carriers offering reverse logistics
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Compliance with GCC e-commerce regulations
Omniful’s modular platform, born in Riyadh and built for regional retail, ensures these variables are not an afterthought—they're foundational.
Future Trends in Returns Management
As businesses adopt circular economy principles and sustainability mandates, returns management is becoming greener and smarter.
Emerging trends include:
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Smart return lockers in urban areas
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Dynamic return windows based on customer loyalty
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Blockchain-enabled product traceability in reverse flows
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Sustainability scoring for returned SKUs
Returns benchmarking will evolve from just ratios to comprehensive performance scoring—factoring in cost, speed, sustainability, and customer satisfaction.
Final Thoughts
Returns management is no longer a cost centre—it’s a strategic pillar in modern logistics and supply chain management. By benchmarking your returns ratio against your industry peers and implementing best-in-class practices, you can transform returns into a competitive advantage.
Whether you're in fashion or FMCG, B2B or D2C, a proactive reverse logistics strategy will improve your margins, delight your customers, and future-proof your business.
Let your returns be your roadmap to operational excellence.
