How To Manage Cross-Border Ecommerce Returns Effectively in 2025

In 2025, cross-border ecommerce returns are a big deal. If your business isn’t thinking about them yet, trust me, you should be. With global online sales hitting $7 trillion, people are buying from all over the world, which means they want the same smooth returns process they get when buying domestically.

But here’s the catch: managing returns across borders isn’t as easy as slapping a shipping label on a box and calling it a day. If it were, we’d all be doing it!

Cross-border returns are a tangled web of customs, taxes, shipping costs, and let’s not forget about customer expectations. So, how do you do it? Well, buckle up because we’re about to dive into the complexities of international returns and why getting it right could be the difference between growing your business or losing money.

The cross-border returns challenges: It’s like doing your taxes, but worse

Alright, first things first, let’s talk about the challenges. If you’ve ever tried to handle international returns, you probably already know that it’s like juggling flaming swords while riding a unicycle.

Customs regulations? They’re a nightmare.

Shipping costs? They can be downright absurd.

Return timelines? Let’s just say, if your customers are anything like me, they’re not waiting around for weeks on end for their refunds. At least not happily.

But here’s where it gets interesting: cross-border returns have a direct impact on your bottom line.

Customs complexity: The paperwork nightmare

Every return that crosses a border has to deal with customs regulations, and they’re not universal: oh no. Countries have their own rules about what’s allowed to cross their borders and under what circumstances. One wrong declaration, and you could have that returned package stuck in customs for days or, worse, sent back to the customer with no refund.

And the paperwork! It’s not just a “whoops, I forgot to sign here” thing. No, you’ve got to get everything right, from the commercial invoice to the product codes. For example, the EU’s ICS2 (Import Control System) and its focus on customs declarations means more paperwork and tighter checks on returns.

Mistakes? They cost money, time, and customer satisfaction.

Shipping costs: When the price of returns is higher than your monthly Netflix subscription

You think shipping costs are high? Try paying for an international return. For many countries, especially in places like LATAM, Africa, or even parts of Asia, the shipping fees for returns can be through the roof.

And I don’t mean a few bucks. I mean $50-$100 or more.

So, if you’re offering free returns to customers, guess who’s paying? That’s right, you. But it’s not just the shipping cost; you’ve also got delays. Maybe you’re trying to get something back from the UK to the U.S., but now it’s sitting in customs for 10 days. That’s 10 days where that return is doing nothing but collecting dust, and your customer’s patience is slowly dwindling. They’re likely thinking about never buying from you again.

Customer expectations: The need for speed (and accuracy)

In 2025, customers expect things to happen fast. They want fast shipping, and they want fast returns. More than half of consumers expect free returns when buying from cross-border merchants, and they expect those returns to be just as easy as if they were returning something in their local store.

But that’s not always possible when you’re dealing with international shipping and customs. So, how do you manage customer expectations in a flat world, while keeping your returns workflows quick and smooth, at a price that you can afford?

Balancing the scale: How to make cross-border returns work without losing your shirt

So, now that we’ve established that international returns are terribly complex and unpredictable, let’s talk about how you can actually manage it all while keeping profit margins intact and customers happy.

Spoiler alert: it’s all about balance.

You have to be strategic about the choices you make when it comes to returns policies, shipping methods, and technology.

Technology to the rescue: Streamlining returns with smart tools

If you’re still trying to handle returns manually across borders, you’re doing it wrong. Returns management software is a game-changer, especially when it comes to tracking returns, generating international return labels, and automating the process of issuing refunds.

Tools like WeSupply, ZigZag, Loop Returns, and Aftership are specifically built to handle the complexity of cross-border returns. These systems help track shipments and customs data so you can stay on top of what’s happening with each return. Not to mention, they can help you automate things like prepaid return labels (which is a nice customer-friendly touch) or even local return addresses in key markets.

It’s not just about making things easier for you, it’s also about making the process seamless for the customer.

Local return hubs: A little local help goes a long way

A local return hub can be a game-changer for your international returns process.

Imagine this: instead of having every return shipped back to your main warehouse in the U.S., you set up local warehouses or partnerships in key regions (think: the EU, Canada, or Southeast Asia). Customers in those areas can return items to a nearby location, which cuts down on shipping costs and delays. It also allows you to quickly process returns and get items back into your inventory, often faster than if you were waiting for them to cross the ocean.

So, while it might seem like an extra upfront cost, local hubs help you save time and money in the long run. And don’t forget, customers love convenience. So, if they can drop off a return at their local store or at a PUDO point (pick-up/drop-off location), they’ll love you even more.

Customer service: Don’t make them work for it

Okay, so we’ve talked about how to get the products back, but let’s not forget customer service. A solid return policy and easy process don’t mean anything if your customer service is a disaster. If something goes wrong, whether it’s a shipping delay, a lost item, or confusion about how to process the return, your customers need clear answers and support that actually helps them.

In 2025, that means 24/7 support with live chat options, multilingual capabilities, and the ability to easily track their return status.

And if you’ve got a team handling all those requests, make sure they’re trained to handle international returns efficiently. The faster you can resolve issues, the more likely those customers are to buy from you again.

Best practices for managing cross-border returns in 2025

Alright, now for the fun part. Let’s go over a few best practices that’ll help you nail your cross-border returns strategy in 2025:

Set clear expectations upfront. The first step is to be clear about your returns policy. You’ve got to make it obvious on your product pages and throughout the checkout process. If customers know they’ve got a 30-day return window or that shipping fees are on them, they’ll be prepared. The clearer you are upfront, the less confusion and frustration you’ll deal with later.
Offer flexible solutions. Not all returns need to go back to your warehouse. Returnless refunds or store credit can be an effective way to reduce shipping costs and get happy customers without the hassle of long return journeys. For low-value items, sometimes it just doesn’t make sense to deal with the returns hassle at all.
Automate where possible. If you aren’t using some kind of returns management software by 2025, what are you doing? Seriously, you need to automate. Whether it’s generating labels or managing customer communications, software like WeSupply, ZigZag, Loop Returns, and Happy Returns can save you time and effort.
Leverage regional expertise. When dealing with regions like LATAM or Southeast Asia, it’s essential to partner with local logistics providers. They know the ins and outs of customs, taxes, and local return practices. Local expertise can save you money and time; trust me, it’s worth it.
Sustainability matters. Don’t just think about the cost of returns, think about the impact. As environmental concerns grow, so does the pressure on businesses to reduce their carbon footprint. Consolidating returns, offering returnless refunds, or donating items locally instead of shipping them back to a warehouse are all ways to cut down on waste. Customers are increasingly aware of brands’ environmental practices, and offering eco-friendly return options is a great way to build trust.

Final thoughts: Cross-border returns don’t have to be a nightmare

So, managing cross-border returns in 2025? It’s definitely not a walk in the park. But it doesn’t have to be a total nightmare either. It’s all about having the right tools, the right processes, and honestly, the right partnerships. Sure, things might be a little complicated, but with the right strategy, you can actually make international returns something that works for you, rather than against you.

Whether you’re setting up local return hubs to make things easier for your customers or using AI to make sizing a lot less confusing, just remember this: don’t let returns eat into your profits. Instead, use them to make your brand stand out from the competition.

Now, if you’re reading this and thinking, “Well, I haven’t really given my cross-border returns strategy much thought,” let me tell you: now is the time to dive in. I know, I know; it’s easy to get distracted by the next shiny thing, especially when it comes to apps and plugins that drive new domestic growth, but returns aren’t going anywhere. Also, 1) cross-border commerce is a revenue driver: billions of customers (with a “b”) vs. hundreds of millions, and 2) international returns can crush your profitability if you let them sneak up on you. 

You’re an ecommerce professional; you’ve always been ahead of the game, right? Well, this is just another piece of the puzzle. And, remember, happy customers make repeat customers, regardless of where they live. And repeat customers will keep your business rolling for years to come.

So, get your cross-border return processes figured out, get your tech in place, and then sit back and watch as you turn a headache that you’d prefer to ignore into a profit-driving, customer-loyalty-building machine. Because at the end of the day, that’s what makes a brand stand out: the ability to take the not-so-glamorous parts of business (like returns) and turn them into something that makes your customers say, “I love this company!”

And that, my friend, is how you build a business that lasts.

Manish Chowdhary is the founder and CEO of Cahoot, the most comprehensive post-purchase suite for ecommerce brands. A serial entrepreneur and industry thought leader, Manish has decades of experience building technologies that simplify ecommerce logistics—from order fulfillment to returns. His insights help brands stay ahead of market shifts and operational challenges.