Key Takeaways
- A return can cost more than the return courier fee once original delivery, repacking and replacement shipping are included.
- Parcel weight, size, destination and courier service can all affect what you pay to ship an item back.
- Pickup is convenient, while drop-off may give sellers and customers more flexibility depending on the courier.
- Many returns caused by damaged, incorrect or poorly described products can potentially be reduced before shipping.
- Tracking returned parcels helps sellers know when to issue refunds, replace products and return inventory to stock.
Return shipping cost for Malaysian sellers depends on the parcel’s weight, size, destination, courier, and who is responsible for the return. The true cost can also include the original delivery, replacement shipping and lost product value, so one returned order may cost much more than the return courier fee alone.
Returns are part of selling online, you just can’t avoid it. Maybe you sent the wrong colour, or perhaps the customer simply changed their mind. Either way, return shipping has a cost, and that cost can be much bigger than the courier fee printed on the return label.
If you handle only a handful of orders every week, this may not feel like a major issue. Once you start shipping hundreds or thousands of parcels, that’s where your margin shrinks.
So coming from a courier delivery service, let’s talk about what should Malaysian ecommerce sellers actually look at?
How Much Can Product Returns Cost Malaysian Sellers?
ParcelDaily’s own published courier guides show that ordinary domestic parcel shipping can start around RM5 to RM15 depending on factors such as courier, weight, destination and service level.
East Malaysia shipments can also cost more than comparable Peninsular Malaysia deliveries, much more in fact.
But the return courier fee is only one part of the equation.
Imagine you sell a product online and spend:
| Cost | Example |
| Original delivery | RM7 |
| Return delivery | RM7 |
| Replacement delivery | RM7 |
| New packaging | RM2 |
| Total logistics cost | RM23 |
The return courier may only cost RM7, but the whole situation has now created RM23 in logistics expenses.
And we have not included staff time, payment processing, marketplace fees or the value lost if the returned product cannot be resold.
And honestly, time matters more than most and if the order volume increases, that’s a lot of time wasted.
Say your store ships 1,000 orders per month and 8% are returned. That is 80 returned parcels.
If each one costs RM10 in return freight, you are already spending:
1,000 orders × 8% × RM10 = RM800
That is RM800 purely for return delivery, before considering the rest of the costs.
The exact percentage will vary greatly by business. Fashion sellers, for example, may deal with sizing returns that a seller of phone cables rarely sees. The important thing is to track your own return rate instead of treating returns as random one-off problems.
What Affects Return Shipping Cost?
Return shipping is still shipping, so most of the same things that affect your normal courier bill apply when the parcel travels in the opposite direction.
Parcel Weight and Size
Couriers commonly price parcels based on weight brackets, dimensions or chargeable weight.
Large but lightweight items can be especially tricky because volumetric weight may apply.
A pillow, handbag box or large gift set might weigh very little on the scale but still take up plenty of room inside a courier van.
We recommend checking both parcel weight and dimensions because oversized packaging can push shipments into a higher chargeable bracket.
If somebody returns a small skincare bottle inside a massive Shopee parcel box stuffed with paper, you could end up paying more than necessary.
Where the Parcel Is Coming From
A return from Petaling Jaya to Kuala Lumpur is very different from a return travelling from Sabah to Selangor.
Domestic shipping between major Peninsular Malaysian locations is just cheaper than deliveries involving Sabah and Sarawak, so sellers with customers nationwide should avoid assuming every return will cost the same.
Courier and Service Type
Different couriers have different rate structures, coverage and pickup requirements.
The cheapest courier for your normal outbound orders may also not always be the most suitable option for a return.
If you use Shopify or WooCommerce instead of a marketplace-controlled shipping system, you may also have more freedom to decide which courier the customer should use.
Who Is Paying?
This is another big one.
On Shopee Malaysia, for example, the rules depend on why the return is happening. If the seller sent a damaged, faulty, incomplete or incorrect item, Shopee states that the seller bears the relevant forward and return shipping fees.
Eligible Shopee returns can also use supported pickup or drop-off methods where return shipping is covered through the platform. S
If you sell through your own Shopify store, your return policy gives you more control, but you still need to clearly explain who pays for return shipping and under which circumstances.
Return Pickup vs Customer Drop-Off: Which Works Better?
Both can work, but again it really depends on what you sell, where your customers are and what your courier supports.
Return Pickup
The courier collects the parcel from the customer’s address.
This is convenient, especially for customers returning:
- Large parcels
- Heavy products
- Multiple items
- Items that are difficult to carry to a courier branch
Pickup can also make your return experience feel smoother.
The downside is that somebody normally needs to be around when the courier arrives, so no office hours delivery for most.
Pickup availability may also vary by postcode, courier and parcel volume.
Customer Drop-Off
The customer brings the parcel to a courier branch, service point or supported drop-off location.
This often gives customers more flexibility because they can return the parcel when convenient rather than waiting at home.
For a small fashion parcel, dropping it off while heading to the mall may be easier than arranging a collection.
For sellers running their own website, it may make sense to offer one default return method and handle special cases separately.
How Can Sellers Reduce Avoidable Return Costs?
Customers change their minds, clothes do not fit, sometimes products simply do not meet expectations, that’s part and parcel (pardon the pun!) of running an e-commerce business.
But quite a few returns happen because something went wrong before the parcel even reached the customer.
According to MCMC’s e-Commerce Consumers Survey 2018, damaged or defective products were the most commonly cited reason for returns at 44.1%, followed by receiving the wrong item at 33.6%. Another 15% said the product was not as advertised, while 12.1% returned an item because it did not fit.
That matters because several of the most common return reasons are things sellers can potentially reduce before the parcel even leaves the warehouse.
You are essentially answering “Why are customers returning these orders in the first place?”
Improve Product Information
Always Include:
- Clear dimensions
- Accurate colours
- Size charts
- Multiple photos
- Product materials
- Compatibility information
- What’s included in the box
If the product is 15cm wide, say 15cm. Don’t make customers judge the size from a beautifully edited Instagram photo, always included as much details of the product as possible.
Check Orders Before Packing
Wrong colour, wrong size, wrong variation.
Very simple fulfillment mistakes can become expensive once the product has travelled across Malaysia and needs to come all the way back.
A final order check before sealing the parcel takes a few seconds.
Pack Products Properly
Cheap packaging is not always cheap if the result is a damaged product.
Use suitable boxes, mailers, padding and protection based on what you are sending. At the same time, avoid unnecessarily large boxes that can increase volumetric weight.
We have a whole blog on the type of packing for fragile items, so go check it out!
Watch Your Return Reasons
Instead of recording every return as simply “returned”, categorise them.
For example:
- Wrong size
- Wrong item sent
- Damaged in transit
- Product defect
- Customer changed mind
- Description inaccurate
- Failed delivery
After a few months, patterns usually become much easier to spot.
If 30% of your returns involve one blouse being “smaller than expected”, you probably have a product-page problem.
If one product keeps arriving damaged, you may have a packaging problem.
Why Should Sellers Track Return Parcels?
Once the customer ships an item back, don’t treat it as finished. You still need to know where that parcel is.
Return tracking helps both sides confirm:
- The customer actually shipped the product
- The courier accepted the parcel
- The parcel is moving through the network
- The seller received it
- The refund or replacement can proceed
This is especially important when customers ask, “Boss, already return three days, when refund?”
Without tracking, your customer service team may have no answer.
For Shopee orders, the process is largely managed through the platform. With a Shopify store or orders taken through WhatsApp and Instagram, you may need to collect the tracking number yourself and update your own records.
Make Return Shipping Easier With ParcelDaily
Returns are part of ecommerce fulfillment. The goal is not to eliminate every return, but to understand what they cost and make the process easier when a parcel needs to come back.
With ParcelDaily, Malaysian businesses and ecommerce sellers can access multiple courier options from one platform, compare available rates and arrange shipments based on parcel size, weight and destination. You can also track shipments from one dashboard instead of checking different courier websites.
This can also help with return and replacement shipments. Sellers can compare courier options, arrange delivery and monitor the parcel as it moves back through the network.
For Cash On Delivery orders, ParcelDaily also provides a central COD dashboard and failed-attempt notifications for selected couriers, helping sellers spot unsuccessful deliveries before they become another return to manage.
If you want a piece of mind on your deliveries, get in touch with us!
