In this paper, we explore and discuss the effects of sales returns on the retail and E-commerce industry. We also take into consideration the positive and negative impact of sale returns on the minds of consumers as well as retailers. Sales returns in the simplest of terms means merchandise that is given back by the buyer to the seller to annul the prior transaction due to reasons like defects in the product, untimely delivery and so on. Sales returns have an enormous adverse impact on the balance sheet of companies as they have to be deducted from the amount of sales revenue, thus reducing top line and bottom-line growth. Almost all the companies, whether in bricks and mortar form or online form have opened the option of sales returns to do customer-centric selling due to which a lot of industries and companies are hit by the abundant amount of sales returns. In this paper, we also discuss some of the ways in which sales returns can be reduced through effective operations and new inventive ideas.