As Returns Grow Retailers Must Work Smarter Not Harder to ReSell Products

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As Returns Grow, Retailers Must Work Smarter, Not Harder, to Re-Sell Products

2 minuti di lettura

We’ve all seen the headlines and statistics on product returns. Last year consumers returned $890 billion in merchandise. Since only 47% of returned items are resold at full price, today’s return volumes represent a staggering financial loss for retailers.

For a $5 billion retailer with 50% online sales and an industry-average 30% returns rate, returns represent a $750 million problem. It’s huge! And it’s not only the lost sales opportunity that hurts, but also the high operations costs associated with returns, estimated to be about 30% of a product’s original price.

On May 1, Amazon recorded $1 billion in one-time charges that it partly attributes to losses from product returns. A number of high-profile retailers, including Amazon and Walmart, are increasing the number of “refunds without returns,” which means the cost of receiving and processing the return exceeds its perceived value to them.

Letting consumers keep unwanted products, or sending billions of pounds of returned merchandise to landfills, doesn’t seem like a smart solution. And implementing stricter return policies might seem like a good idea, but a Blue Yonder survey found that most retailers see an increase, not a decrease, in returns volumes after tightening their policies.

So what’s the solution? Retailers need to focus their energy and investment on processing returns quickly, accurately and intelligently. By getting products back into available inventory as fast as possible, retailers can significantly increase the chance they’ll sell at full price. Blue Yonder’s returns management capabilities are designed to support that goal, by optimizing the returns process at every stage of the end-to-end journey.

Improve returns speed and visibility, beginning at home

Too many retailers create waste and supply chain blind spots by including paper labels in every single product delivery. The problem? By using a provided label, consumers can return the package at any place or any time — and retailers have no forward-looking awareness. They don’t know why the item’s being returned or what condition it’s in. That’s simply not smart.

By eliminating labels and having consumers initiate returns digitally, the process is faster and more seamless for the shopper, but also more value-added for the retailer. For all returns, retailers know when and where the product will arrive back at their supply chain. They can have resources in place to process the return quickly and speed it back into inventory. For sold-out, viral, seasonal or otherwise in-demand merchandise, the returned product can be prioritized and fast-tracked. Real-time visibility into returns initiation and drop-off starts the process with an increased chance for ultimate resale success.

Equip warehouse returns staff to be superheroes

Given the importance of getting returns back into warehouse inventory, the returns team at your distribution centers need to be treated as superheroes — and provided with all the tools they need to soar. Give them the power to digitally scan returns and immediately access every important piece of information, including customer history, order details, complete product information, potential damage and return reason.

Warehouse returns teams also need a rules-enabled digital process that guides their efforts. Intelligent tools, policies and checklists make the work go faster, minimize the need for human judgment, and help reduce employee burnout during peak returns periods. For products that pass the digital checklist, refunds can be issued quickly, and merchandise can be committed to another shopper before its value drops.

Advanced digital solutions in the warehouse also help detect fraud by analyzing each customer’s return history, purchasing behaviors and returns frequency. Retailers can enforce stricter policies in response to today’s fast-growing problem of returns fraud, but in a smart, targeted manner.

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Turn the returns desk into a revenue center

Automated checklists, visibility into returned products, and fraud detection are equally important concepts when products are brought to the in-store returns desk. In this case, process structure and discipline are especially important, as store employees are rarely returns specialists — they’re busy customer service associates who fill many important roles. Maximize their efficiency, speed and accuracy in processing returns, and you’ll make them available for other high-value work.  

Often the in-store returns process is characterized by labor-intensive manual processes, paperwork, employees’ personal judgment and negotiation skills, and specialized decision-makers who have the ultimate say.  By replacing this slow, error-prone process with technology, data, intelligence and standardized processes, retailers can speed products back to the shelf and maximize their margins. Digital solutions can even reveal the precise location where each product should be restocked in the store, creating a faster, clearer path to a resale.

An added benefit of creating a fast, easy and seamless in-store return process? Retailers can maximize the chance that shoppers will make another in-person purchase while they’re in the store. Did you know 70% percent of shoppers purchase more from a specific retail brand after having a positive returns experience? Turn that returned product from a loss to a win in minutes, by providing a fast, easy in-store returns experience.

 

Increase the appeal and relevance of returns with Blue Yonder

The nearly trillion-dollar return problem isn’t going anywhere. The solution for retailers lies in optimizing the returns journey at every step for cost, accuracy and speed — to maximize the chance for resale while products are still fresh and attractive to shoppers.

Blue Yonder works with the world’s leading retailers every day, and we understand how to master the complex returns challenge. Our purpose-built solutions help maximize the financial potential of returned merchandise by quickly creating a second sales opportunity.

From the moment of returns initiation to reshelving sellable products, Blue Yonder automates workflows, captures data at key touchpoints, and provides real-time visibility. By making returns management decisions based on data, precise process steps and well-defined rules, retailers can minimize their losses and maximize new revenue.

Why not contact Blue Yonder and start increasing the value of your product returns? We can help you and your employees work smarter, not harder, at every stage of the returns process.