EU Proposes New Rules for Online Returns: What Merchants Need to Know

Industry Update | Backsy Insights

In recent years, the boom in online shopping across Europe has brought unmatched convenience to consumers — but it’s also led to an explosion in returns. While hassle-free returns might seem like a win-win, the environmental cost and operational burden are raising alarms. Now, the European Union is stepping in.

The EU Commission is proposing a new set of regulations that could soon reshape how online returns work across the region — and if you’re a merchant selling into Europe, this is your early warning.

Let’s break down what’s happening — and how your business should prepare.

Why the EU is Looking at E-commerce Returns

Online shoppers in the EU return products at a rate 2–3x higher than in physical stores. This isn’t just expensive — it’s polluting. Each returned product often travels hundreds of kilometers, gets repackaged (or worse, discarded), and leaves a carbon footprint that’s invisible to most customers.

The EU’s aim is to bring greater transparency and environmental responsibility into the return process.

Under the proposed rules, platforms may be required to show consumers the environmental cost of returning an item — for example, the CO₂ emissions involved in that return. This shift is not just about numbers — it’s about changing mindsets and shopping behaviors.

A 30-Day Minimum Return Window Across the EU?

Another key change on the table is the introduction of a mandatory minimum 30-day return period across all EU countries. While many merchants already offer this, it would become law — creating consistency, but also requiring updates from sellers in countries with shorter windows.

For merchants outside the EU who sell into it — especially through marketplaces or direct websites — this could mean revisiting your entire returns policy and ensuring full compliance.

It’s not just about shipping anymore — it’s about legality, transparency, and sustainability.

Ending “Free Returns Culture”? Small Fees Might Be Coming

Here’s the part that may cause the most discussion: the EU is considering allowing merchants to charge a small fee for returns not due to product faults.

Yes, the golden age of “buy five, return four” could soon come with a price tag.

This policy would aim to discourage impulse buying and reduce waste, particularly in industries like fast fashion where return rates are extremely high.

Of course, consumers still have the right to return under EU law — but making the cost more visible (both environmental and financial) might push more thoughtful shopping habits.

What Should Merchants Do Now?

If you’re selling online — especially cross-border into Europe — it’s time to get ahead of the curve. These rules aren’t in force yet, but they are very real, and the direction is clear.

Here’s how you can start preparing:

• Audit your current return policy — does it meet or exceed 30 days?
• Check your shipping & returns carbon footprint — many third-party tools now offer emission estimates.
• Explore adding return fees (carefully!) for non-fault returns — make sure they’re fair, legal, and clearly communicated.
• Be transparent with customers — soon this won’t just be good practice, it may be the law.
• Stay updated — subscribe to EU policy newsletters or follow Backsy for more insights like this.

How Backsy Helps You Stay Compliant (and Competitive)

At Backsy, we’re not just building tools — we’re building trust.

Our platform gives you the flexibility to:

• Set custom return policies for different regions
• Display eco-friendly return options and messages
• Offer return fees for specific scenarios, fully compliant
• Track return behavior with analytics to reduce “return abuse”
• Auto-sync policy changes across multiple Shopify stores

And most importantly — we stay up to date with changing global regulations so you don’t have to.

“Returns are no longer just a logistics issue — they’re a strategic, legal, and environmental one.”
— Tony Vu, CEO of Backsy

Final Thoughts

The EU’s new return policy proposals are not here to punish merchants — they’re designed to protect the planet and encourage healthier shopping habits. But adaptation takes time, and early movers will have the advantage.

We recommend every merchant — especially those selling cross-border — start reviewing their return flow now, update messaging, and lean into transparency. Whether the rules become law next quarter or next year, the direction is inevitable.

At Backsy, we’ll be right here — building tools that support you at every step.

Follow Backsy for real-time updates on global return policy shifts and best practices for e-commerce.

Learn more: https://backsy.io