According to the latest Impacts study by Savills, global E-commerce sales are expected to reach 4.8 trillion US dollars by 2025, with around one trillion US dollars attributed to returns. As stated in a press release dated August 14, 2025, returns management continues to be one of the greatest challenges in online retail.
A survey by DHL shows that 53 percent of respondents cite "free returns" as the second most common
desire in e-commerce—right after "free shipping." At the same time, 39 percent view return costs as the biggest frustration factor when shopping online. While charging a fee for returns might decrease volume, retailers still need to quickly reintegrate large quantities of returned products into inventory. According to Savills, return logistics require about 20 percent more storage space than traditional product shipping, which is why real estate strategies remain crucial for success.
Local logistics centers, in particular, are under pressure due to the high volume of returns. Since December 2020, rising demand has led to around a 30 percent increase in peak rents and fees for warehouse space globally. To process returns efficiently, e-commerce companies are increasingly securing warehouse space in strategically advantageous locations—especially near major urban areas and transportation hubs. This proximity reduces shipping times and costs, increasing the value of well-located
logistics properties.
Connor Chilton, an analyst at Savills World Research, emphasizes: "With the continued growth of e-commerce and rising customer expectations, returns management remains a key factor for real estate and supply chain strategies. Companies that respond early to the requirements, secure flexibly usable storage spaces at well-connected locations, and invest in technology and skilled personnel will be best positioned to ensure a seamless customer experience in an increasingly competitive market.”
