REVERSELOGISTICS [ INSIGHT ]
by Johannes Panzer Head of Marketing, Global Ecommerce, Descartes info@descartes.com | 800- 419-8495
5 Ways to Optimize Returns Handling Escalating returns are a margin-shrinking problem for U.S. retailers, surging to nearly $850 billion and 15.8% of annual sales in 2025. With hefty return volumes straining warehouse workflows, ecommerce retailers are struggling to keep pace. 2. Assign clear ownership and procedures. Returns processing must be assigned to an owner accountable for performance goals. Equip them with the time and tools necessary to comply with the company’s standards.
3. Inspect goods before issuing refunds. Workers must open boxes and physically evaluate contents to catch instances of fraud and policy violations. Work closely with customer service teams to ensure timely refunds. 4. Take advantage of time-saving technology. Accelerate returns management processes with a warehouse management system (WMS) and barcode scanning capabilities. Leading WMS solutions are also integrated with post-purchase platforms to help optimize returns, exchanges, and reverse logistics. 5. Relist products immediately. Scan saleable items back into available inventory, using integrated ecommerce technology to update sales channels in real time. With customer service, nance, and warehouse operations aligned on a holistic reverse logistics strategy—plus, the support of a tech stack integrating order/inventory/warehouse management capabilities to automate returns work ows—ecommerce retailers can better keep pace with increasing returns volumes, without compromising the customer experience or pro t margins.
supporting technology, returns of seasonal apparel can languish in the warehouse, and those summer sandals won’t make it back into inventory for resale before consumers’ thoughts turn to back-to-school and their fall wardrobe. Retailers also must contend with scams such as consumers overstating the quantity of items returned, substituting a counterfeit item for the real product, and returning empty boxes or even a “box of rocks.” If refunds are issued before packages are inspected, the pro t risk is signi cant. Not only is the retailer exposed to losses from damaged, unsaleable goods while missing the chance to recoup sales revenue, but the practice also leaves room for fraudsters to get away with refunds from fake returns. To build an ef cient, scalable returns management system, retailers should consider the following ve steps: 1. Make returns processing a top priority. Establish a company-wide standard for same-day inspection, processing, and relisting of saleable merchandise.
The frustrating fact is they may unwittingly be part of the problem: 82% of consumers indicate that free returns are an important consideration when shopping online, and many brands offer free returns and instant refunds to strengthen brand loyalty and encourage repeat purchases. Many retailers quickly discover, however, that return policies designed to delight customers can create downstream chaos if the operational side of returns is not equally prepared. Without a clear, standardized returns handling process, packages pile up in the warehouse and workers feel overwhelmed and ill-equipped to keep up with the in ow of returned goods. A bottleneck of unprocessed returns delays restocking, disrupts picking, slows outbound ful llment, and distorts inventory accuracy, ultimately tying up capital and pushing goods toward discount channels to be sold at a loss. Fashion brands are particularly vulnerable to the cost of inef cient returns handling. Without standardized returns management work ows and
70 Inbound Logistics • July 2026
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