For the first time since 2022, German e-commerce sales are once again above the previous year’s level—even though the national economy contracted in 2024, according to recent data. The fact that e-commerce revenue is returning to its familiar growth trajectory brings relief to the industry. However, some changes are here to stay: rising logistics costs, unstable supply chains, and increasingly demanding customer expectations are turning the path to profitability in 2025 into a tightrope walk. Only a holistic view of customers, products, and business operations can prevent missteps along the way.

A Holistic View: From A for Acquisition to Z for Returns

Retailers should now have a comprehensive view of their sales activities—from product planning to returns. Only with this level of insight can businesses work in a customer-centric way and build deep, long-term customer relationships without sacrificing profitability. Retailers must finally realize that the money they spend on elaborate marketing campaigns is wasted if their returns management and post-purchase services are not solution-oriented. Enhancing customer comfort and service doesn’t mean customers shouldn't also take responsibility for their shopping behavior.

For example, in recent months, both small and major fashion retailers have begun moving away from blanket free return policies, opting instead for models that charge specific customer groups for returns. However, to truly counter rising costs, individualized return solutions are needed.

Why Free Returns Are Being Reevaluated

According to recent data from Statista Market Insights, 12.7% of global revenue in fashion e-commerce is lost due to product returns. Not only does this cut into profits, but high return rates also tie up resources in customer service, logistics, and accounting.

From Cost Trap to Competitive Advantage

These numbers make it easy to understand how returns gained a reputation as a margin killer. But the trend away from free returns should not be seen merely as a countermeasure. Rather, 2025 signals a mindset shift: returns are no longer viewed only as a cost center, but as a strategic lever. Siloed approaches are not the path to greater profitability. Before online retailers pass return costs directly to consumers, it pays to analyze the return behavior of their own customer base.

Retailers are becoming more aware that not every return comes from a dissatisfied customer—and not every return represents a pure loss due to additional effort. The key is to differentiate frequent returners from customers who only occasionally send items back. Traditional returns systems don't provide sufficient insights for this purpose. What’s needed is a digitized returns management process, which enables the linking of data. Only with this foundation can businesses begin to actively manage returns and complaints.

Retailers who understand that this active management shapes the final stage of the customer journey can turn their digitized returns infrastructure into a competitive edge. Identifying frequent returners saves costs, while the broader flexibility enabled by digital tools generally strengthens customer loyalty.

No Future for Purely Analog Commerce

In light of increasingly demanding customers, profitability pressures, and tighter market conditions, retailers must innovate and drive transformation in 2025. They can no longer afford blind spots in their operations, as they risk being overtaken by competitors better equipped to handle these challenges. The benefits of initiatives that leverage customer data—especially the integration of such data—are becoming increasingly critical to the future of e-commerce.

Add to that the growing importance of social commerce, influencer marketing, and technologies like artificial intelligence. German retailers—especially small and mid-sized businesses—are lagging in digital adoption, while large international players are already seeing success with these new tools.

Retailers who feed insights and data from returns back into product development or marketing create an information infrastructure where every customer touchpoint becomes a chance to deepen knowledge—and relationships. With more accurate customer profiles, personalized offerings become more effective, and selectively applied return fees become a viable tool to reduce costs.