Cross-Border Returns Have Driven Long Refund Delays

International retailers face refund processing times reaching 62 days as cross-border logistics complicate customer returns.

Updated on Oct. 12, 2026 in Retail

Cross-Border Returns Have Driven Long Refund Delays

Live Poll

Do you trust that online retailers provide fair and transparent return policies for international orders?

A mystery shopping study of 31 orders from UK retailers found that customers waited a median of 16 days to receive refunds for returned products. None of the retailers examined offered free return shipping, with many deducting courier costs from final reimbursements.

Why it matters

Refund delays and high return costs can frustrate international customers and diminish profit margins. These inefficiencies often stem from parcels sitting at processing facilities, which creates significant friction in the cross-border customer experience.

The study tracked 31 orders with basket values ranging from €15 to €70, resulting in a total original spend of €738 but only €422.40 in customer refunds. Returns processed in the Netherlands took an average of 41 days to complete.

The players

ShopReturns

A research entity that conducts mystery shopping studies on retail return processes.

The details

Researchers found that 12 of 20 tracked returns were diverted to facilities outside the UK, including locations in Germany, the Netherlands, and Italy. Return recovery amounts were heavily impacted by the deduction of original shipping fees and the requirement for customers to fund their own return logistics. Parcels frequently faced long delays while sitting at processing centers before authorization, dragging out the total refund window.

Timeline

  1. October 12, 2026: Publication of the ShopReturns mystery shopping study results.

Market Landscape

The findings underscore the persistent operational friction inherent in post-Brexit cross-border trade. This study quantifies how logistical bottlenecks now systematically disadvantage international consumers compared to domestic counterparts.

Operators should audit their international return processing times and transparency regarding shipping fee deductions. Consider whether current routing to third-party facilities is artificially depressing customer recovery rates and hurting long-term brand loyalty.

The takeaway

Operational delays at foreign return facilities are directly reducing the percentage of capital recovered by consumers. Retailers should evaluate whether the cost of these delays to customer experience outweighs the savings gained by using specific international logistics hubs.

Further reading

For more on managing international commerce, see our latest Retail analysis.

Live Poll

Do you trust that online retailers provide fair and transparent return policies for international orders?