Analyzed 3 months of returns data from my store. Tier 2 and tier 3 returns are 3x more expensive than metro returns. Here's the breakdown
Been running my D2C skincare brand for 2 years. Finally sat down and analyzed return data properly. The numbers surprised me. Here's what I found across 847 returns over 3 months: METRO CITIES (Delhi, Mumbai, Bangalore, Hyderabad) — Return rate: 8.2% — Average reverse pickup cost: ₹75 — Average days to receive back: 4.2 days — % where reverse pickup was available: 98% — Damaged on return: 4% TIER 2 CITIES (Jaipur, Lucknow, Surat, Coimbatore) — Return rate: 11.4% — Average reverse pickup cost: ₹95 — Average days to receive back: 8.7 days — % where reverse pickup was available: 71% — Damaged on return: 9% TIER 3 AND BEYOND — Return rate: 14.1% — Average reverse pickup cost: ₹130 (including self-ship reimbursement) — Average days to receive back: 16.3 days — % where reverse pickup was available: 38% — Damaged on return: 22% So a tier 3 return costs me: — 73% more than a metro return — Takes 4x longer — 5x more likely to come back damaged What I changed after seeing this data: 1. Added more photos and a video for every product (tier 3 return rate dropped from 14% to 10% in 2 months) 2. Switched to a shipping aggregator with better tier 3 reverse coverage — pincode availability went from 38% to 71% 3. Started offering 115% store credit as first option for returns — 60% of tier 3 customers now take store credit instead of refund 4. Partnered with a local courier in UP and Bihar for reverse pickups specifically Still not perfect but the numbers are improving. Happy to answer questions. What does your returns data look like?
Posted May 28, 2026, 10:55 AM UTC