10 TIPS 1 MAINTAIN CONSISTENT PRODUCT TEMPLATES
Effective returns management requires a well-planned strategy—from the pre-purchase stage through to the product’s second shelf. Optimizing Reverse Logistics
8 INTEGRATE WAREHOUSE MANAGEMENT. Implement a dedicated Returns Warehouse Management System to streamline sorting, inspection, and categorization of returned goods. Automating key processes reduces manual intervention, enhances accuracy, and ensures products are promptly reintegrated into inventory, resold, or recycled. 9 ENABLE RECOMMERCE AND THE SECOND SHELF. ReCommerce—reselling products through secondary marketplaces or direct-to- consumer channels—lets retailers extend product lifecycles, reduce waste, and maximize pro tability. Integrated ReCommerce solutions provide an even better opportunity, combining optimized routing, refurbishment capabilities, and ef cient resale strategies to reduce handling and increase second-life revenue.
Retailers must maintain standardized product templates with accurate fit information and clear measurements to set proper customer expectations. AI-powered sizing tools can enhance accuracy and improve the customer experience.
2 PRIORITIZE CONTRACT MANAGEMENT. Effective returns management starts with well-de ned contractual agreements between retailers and vendors. Using software to con gure policies, negotiate changes, and optimize settlements, return-to-vendor shipping and communication ensures clarity and ef ciency. Without structured agreements, both parties risk nancial and operational inef ciencies. 3 IMPLEMENT CLEAR RETURN POLICIES. Return policies impact customer satisfaction and purchasing decisions. Studies show that 82% of shoppers consider return policies before buying and 33% avoid retailers with unclear policies. Retailers should prioritize accessibility and exibility in their return policies to build trust and encourage con dent purchasing. 4 ESTABLISH FRAUD DETECTION PRACTICES. In 2024, returns fraud cost retailers $103 billion. To mitigate risks, retailers need advanced fraud detection
tools that identify suspicious return patterns, validate purchase histories, and ag high-risk returns. Without proper prevention, fraudulent returns can signi cantly impact pro tability and operational ef ciency. 5 EMPLOY SAVE-THE-SALE STRATEGIES. Offering alternatives to refunds helps retailers retain revenue and customer loyalty. Solutions such as store credits, incentives, and instant exchanges convert returns into repurchases, ensuring a positive shopping experience while minimizing revenue loss. 6 AIM FOR PROCESSING SPEED AND EFFICIENCY. Rapid returns processing is essential to maintain cash ow and operational
ef ciency. Quickly reintroducing returned products into inventory
reduces warehousing costs, prevents bottlenecks, and enhances liquidity, enabling reinvestment in growth opportunities. Alternatively, slow processing can keep essential working capital tied up, negatively impacting a business’ ability to operate. 7 OPTIMIZE RETURNS ROUTING. An ef cient transportation network ensures returns are directed to the appropriate destination—whether for restocking, return-to- vendor, or resale. Reducing handling time lowers labor costs, minimizes seasonality impacts, and accelerates the return-to-sell cycle, saving retailers time and capital.
10 LEVERAGE DATA AND ANALYTICS FOR END-TO-END VISIBILITY.
A data-driven approach that tracks a return from initiation to final resolution helps retailers uncover inefficiencies, reduce processing times, and enhance customer experiences. Advanced analytics enable businesses to identify return patterns, forecast demand, and implement proactive solutions that minimize avoidable returns and provide actionable insights that drive continuous improvement and profitability.
SOURCE: WES BERRY, EXECUTIVE VICE PRESIDENT OF CLIENT PARTNERSHIP & SUCCESS, RETURNPRO
8 Inbound Logistics • April 2025
Powered by FlippingBook