Returns are an unavoidable part of running a business or ordering online—but the cost of return shipping can quickly add up. Whether you’re a seller managing customer returns or a buyer sending back unwanted items, minimizing return costs is essential. Fortunately, there are a number of tools, programs, and strategies that can help you reduce those fees without cutting corners.

Here’s how to save money on return shipping in 2025.

Use Prepaid Labels From Discount Shipping Tools

Instead of relying on carrier retail pricing, consider using third-party platforms that offer access to discounted shipping labels. Services like Pirate Ship, Shippo, and Stamps.com provide USPS Commercial Pricing and reduced UPS Ground rates—even for low-volume users. With these tools, you can create prepaid return labels and insert them into your packages, making returns easier for customers and more affordable for you.

For buyers, if the retailer doesn’t provide a return label, generating one through a third-party platform can often be cheaper than paying at a local post office or shipping center.

Choose USPS for Lightweight Returns

For small or lightweight items, USPS package service is often the cheapest return method—especially for packages under 1 lb. USPS also provides free pickups through their Package Pickup service, allowing you to send returns without a trip to the post office.

Get Cashback on Shipping Costs

You may not be able to avoid the return altogether, but you can still reduce the sting by earning cashback on the shipping process. Apps like Rakuten, Ibotta, and Fluz offer rewards when you purchase shipping materials or pay for services through supported merchants.

For example, you can earn cashback with a USPS gift card or get rewards with a UPS gift card when purchasing a return label or shipping directly at a store. These cashback rates vary by platform, but they can help offset return shipping fees every time.

To explore carrier gift card cashback options, visit Fluz.

Use Retail Return Programs When Available

If you’re returning an item to a major retailer, check whether they offer free in-store returns or third-party drop-off options. For instance:

• Amazon offers free returns through UPS.
  
• Walmart allows in-store returns for most online orders.
  
• Target offers both in-store and online return label options via your Target account.
  

Always check the return window and shipping policy before you initiate the return to avoid unnecessary fees or rejected packages.

Minimize Returns With Clear Expectations

If you’re a seller, one of the best ways to cut return shipping costs is to reduce return frequency altogether. Include detailed product descriptions, clear sizing charts, and photos from multiple angles. Offer live chat or Q&A to help customers feel confident in their purchase before ordering.

Also, consider offering returnless refunds for low-cost items—it may be more cost-effective than paying for return shipping and restocking.

Conclusion

Return shipping doesn’t have to destroy your margins or your budget. With the right mix of discounted labels, cashback rewards, and smart platform use, you can make returns more manageable and affordable. Whether you’re the sender or recipient, these strategies can help you ship back smarter—and spend less doing it.