Luxembourg stands out in the European e-commerce landscape with a remarkably low return rate of around 5%. In contrast, Germany takes the lead, witnessing one in four online purchases being sent back to the seller.

The year 2021 saw German residents making online purchases totalling €99 billion, resulting in a significant volume of returned goods. University of Bamberg researchers reported that in that year, approximately 530 parcels, containing over 1.3 billion items, did not find a permanent home with German consumers. 91% of these returns comprised shoes and clothing.

A study reveals that nearly two-thirds of German shoppers return items if they fail to meet expectations, surpassing the European average of 52%. In addition, two-thirds of German residents abandon their purchases if they cannot find adequate information about the return process on the respective websites.

"50% of returns could be avoided if buyers would read the description," one retailer criticises. "If a customer goes shopping in town and can't find anything, nobody would think of asking for money back for parking," says another.

Beyond the convenience for consumers, the environmental and financial impacts of returns are gaining attention. Returns not only involve logistical challenges but also incur costs for the retailers. While major players like Zalando offer free return services, smaller retailers find it challenging to absorb these costs. Björn Asdecker, the head of a returns management research group, notes that every return costs approximately €6.95 in transport and processing expenses. This financial burden disproportionately affects smaller businesses.

Why are there so many returns in Germany?

One of the key drivers is the minimal financial burden on buyers, as only one in ten shippers imposes return fees, a sharp contrast to the one in two sellers in other European countries.

In addition, German consumers enjoy an extended window for returns compared to their European counterparts. This extended period, coupled with a higher inclination towards payment on invoice, provides customers with flexibility and convenience in managing returns, especially when payment is not required upfront.

And in Luxembourg?

According to information from the Post Group, Luxembourg residents return a maximum of 5% of their online orders. The rate increases slightly after Black Friday, which sees a surge in orders. In fact, the rapid succession of Black Friday, St Nicholas' Day, and Christmas marks peak season for the Post sorting centre. On average, the number of parcels passing through the centre at this time of year rises from 25,000 to around 44,000 a day.

The reasons behind the low return rate in Luxembourg are not entirely clear. Potential explanations may include the prevalence of return postage charges or the simple fact that many suppliers do not deliver to Luxembourg in the first place. This leads many Luxembourg residents to have orders delivered to parcel collection stations abroad, which means that if they wanted to return their order, they would have to do so from that collection station.