5 Ways to Reduce eCommerce Returns with Product Data Management (2025)

Managing eCommerce returns is a major challenge for online retailers, impacting both profitability and customer satisfaction. In 2022 alone, retailers faced a staggering $212 billion in returns, with an average return rate of 16.5% (Shopify). High return rates not only erode profit margins but also damage brand trust and increase operational costs.

But what if you could significantly reduce returns by improving your product data management (PDM)? Many returns stem from incomplete or inaccurate product information. The good news? There are proven ways to fix this.

The Industry Shift: Why Product Data Management is Key to Reducing eCommerce Returns

Accurate, high-quality product data has become a competitive differentiator in eCommerce. Leading retailers are leveraging automation, AI, and data governance to improve product information and reduce return rates.

The rise of AI-powered eCommerce solutions, expected to reach $16.8 billion by 2030, further underscores the growing role of data intelligence in improving product experiences.

By enhancing your product data, you not only minimize returns but also improve customer trust, boost conversions, and streamline operations.

The Role of Accurate Product Descriptions in Reducing eCommerce Returns

One of the top reasons for eCommerce returns is inaccurate or insufficient product descriptions. When a product’s description doesn’t match the customer’s expectations, it often results in a return.

By providing detailed, clear, and accurate product descriptions, businesses can help customers avoid these mistakes.

When eCommerce returns happen because a customer didn’t understand the product’s features, it’s usually due to a lack of information in the product listing.

Ensuring that all details—such as size, material, and usage, are explicitly outlined can prevent eCommerce returns and reduce confusion.

And when we say organically, nothing comes closer to the heart of the matter than data.

Steps to Reduce eCommerce Returns

Is there a way to leverage product data to reduce returns and win over happier, more loyal customers? Read on to find out:

1. Automate Product Onboarding for Better Product Data Quality

To provide a seamless online shopping experience and support customers in making informed decisions, retailers rely on manufacturers and distributors to provide accurate and comprehensive information.

This information may include specifications, images, and user manuals.

Companies can greatly enhance product information accuracy and completeness by establishing strong data cooperation with suppliers and sourcing high-quality data deeper into the supply chain.

That said, according to a study by ANACONDA, data teams spend as much as 45% of their time in onboarding and enriching data.

This is where automation can be a gamechanger. Leveraging automated product onboarding, such as a product information management (PIM) system with an onboarding portal or a product data syndication portal, can be a vital link between manufacturers and retailers to ensure the quality of product data.

2. Use Customer Reviews to Improve Product Descriptions

Customer reviews are a valuable tool in reducing eCommerce returns. By analyzing customer feedback, you can identify common issues that lead to returns and adjust your product listings accordingly.

For example, if multiple customers complain that an item runs small, you can update the size guide or adjust the product description. Using reviews and feedback to improve your product data will help address customer concerns and reduce eCommerce return.

3. Implement Strong Data Governance

Brands and retailers who have effectively managed their product data typically have robust data governance practices in place to ensure streamlined and consistent processes throughout the organization.

To ensure data accuracy and quality, automated data checks and pre-defined approval checkpoints must be implemented before publishing to websites and other sales channels. And this is where data governance becomes crucial.

Data governance is the building block of data management. It comes as no surprise that the data governance market is projected to grow to USD 6.04 billion by 2026.

So how does data governance help? The mechanism works especially well when safeguarding product information parameters and ensuring data quality before publication.

4. Ensure Consistent Product Specifications Across Channels

Inconsistent or incorrect product specifications are another major cause of eCommerce returns. If the product data for an item, such as its size, weight, or compatibility, is incorrect or unclear, it can lead to confusion and returns. Ensuring that all your product data is consistent across different platforms will help reduce eCommerce returns.

For example, if you sell on multiple marketplaces, ensure that the same size, weight, and material specifications are listed. This consistency in product data across all touchpoints ensures customers receive the product they expected, thus minimizing eCommerce returns.

5. Leverage Embedded Analytics for Smarter Decisions

Organizations need to analyze their product information in a comprehensive manner, rather than focusing on individual details, to be able to manage a vast assortment of products effectively. This allows them to gain a broader perspective of completeness across vendors, categories, and different data views.

Establishing minimum attribute completeness rules enables retailers to compare metrics against baselines at different levels of the data hierarchy, prioritizing further enrichment tasks.

Incorporating embedded analytics into a data management practice can enhance its capabilities and enable users to derive actionable insights, respond quickly to market trends, and improve collaboration through unique and rapid insights.

Companies can analyze and blend master data with other data sources, such as sales, inventory, clickstreams, IoT, and social media, to gain deeper insights into their business operations. It is recommended to merge and blend data across domains for optimal results.

AI all the Way!

Companies can use artificial intelligence (AI) to automate data enrichment and product classification processes, improving customer experiences with better product data. In fact, AI is already making big inroads in eCommerce already.

AI-powered eCommerce solutions are expected to be worth USD 16.8 billion by 2030, so it’s safe to assume that AI will be a mainstay in the digital commerce landscape.

Data Intelligence powered with AI and machine learning (ML) can validate and classify items into the right categories and segments, ensuring product listings are accurately placed within a hierarchy.

Automated data enrichment not only provides higher data quality but also lightens the workload for data management and product merchandising teams, enabling them to focus on more value-added projects such as creating a better customer experience, drive online sales and fewer product returns.

However, AI requires a data management system as a supporting framework. A data management solution provides the rules for which data is important in a business context.

The combination of data management and AI is mutually beneficial, with AI providing speed and data management delivering data governance and accessibility, ensuring that AI delivers useful outcomes that support business goals.

Next Steps: Turn Data Challenges into Business Opportunities

The best eCommerce businesses understand that accurate product data isn’t just about avoiding returns, it’s about creating an engaging and trusted shopping experience.

By investing in automation, analytics, and AI-driven product data management, you can significantly reduce return rates while improving operational efficiency.

Reduce eCommerce Returns with Bluemeteor Product Content Cloud

Reducing eCommerce returns starts with taking control of your product data. Bluemeteor’s Product Content Cloud provides end-to-end product data content management solutions powered by AI and automation. With Bluemeteor Product Content Cloud, you can:

• Ensure product data accuracy and completeness
• Automate product onboarding and data enrichment
• Use AI-powered insights to optimize listings and reduce returns

Don’t let poor product data hurt your bottom line.

Schedule a demo with Bluemeteor Product Content Cloud today and start reducing your eCommerce returns!