Managing returns remains one of ecommerce’s most persistent and costly challenges, says the international real estate advisor, with businesses worldwide working to address the demands of reverse logistics. As online sales continue to surge and the industry continues to grow, so too does the pressure on supply chains and real estate strategies to handle complex, high-volume returns efficiently and competitively.

A recent DHL survey found that 53% of respondents listed ‘free returns’ as the second most requested improvement for ecommerce, behind only ‘free delivery’, while 39% cited return fees as their biggest frustration when shopping online. If retailers hope to keep their buyers while charging for returns, they must prioritise speed and convenience.

While charging a fee to process returns will certainly decrease the volume of buyers seeking returns, businesses must remain prepared to handle large quantities of product returning to their inventory. With reverse logistics requiring 20% more warehouse space compared to standard sales according to Savills analysis, real estate strategies will remain core to these businesses.

Ecommerce is defined by long supply chains and complex logistics, yet it is local warehouse centres that often face the greatest pressure from high return volumes. This surge in demand has contributed to a 30% rise in prime warehouse rents and taxes globally since December 2020, says Savills.

To efficiently process returns for customers worldwide, ecommerce businesses must secure and maintain warehouse space in strategically located markets – particularly close to major urban centres and transport hubs. Proximity is crucial to minimise shipping times and costs, and this has driven up the value of well-positioned logistics real estate.

Connor Chilton, Savills World Research Analyst, says: “As ecommerce continues to grow and mature - and as online consumer expectations rise - the challenge of managing returns will remain a critical factor shaping real estate and supply chain strategies. By securing well-located, flexible warehouse space and investing in technology and labour, businesses that plan proactively for the demands of reverse logistics will be best positioned to deliver a seamless customer experience in an increasingly competitive market.”