How Technology is Changing Returns Processing

Most brands don't have a good returns process. The right technology makes it seamless. I have been in countless warehouses where the returned items are received at the furthest dock. Then put in the back of the building...in a pile...sorted through and processed over several days. Even to my surprise we did a project in the past where the customer said, “I don’t want the returns near the front of the building. It’s dirty and a mess.” (that statement started my mission to improve returns within the warehouse) Now with a combination of robotics and the right software, returns can be handled efficiently. It can become an asset to the fulfillment operation and the brand. 💰I did a study for an apparel brand which identified they could reduce inventory on hand by 10% resulting in a $5MM savings. They averaged 48 hours for processing returns. A shelf to person system like the one shown in the video incorporates all parts of the fulfillment operation. Inbound items are processed then put directly into the pickable location. The item is not touched again until an order is placed for it. The right software can work wonders. If a returned package enters the building that is currently out of stock or low on stock, it is given a high priority and routed by system directly to processing. A worker validates and processes the return then puts it into the pickable location. This puts the product back up on the storefront quickly for re-ordering. In stock items mean more sales for the brand and happier customers. Build a fulfillment system that works for every part of the operation, not just a happy path. Leave a comment or repost if you found this useful! ♻️ Q: Have you ever scrambled to find a product in a pile of returns?

Last year I had a call with the VP of ecommerce of a $300M+ retail company who was convinced their 32% return rate was "just the cost of doing business" When I dug into their data I discovered that almost half of post-purchase revenue loss is preventable. This happens all the time, retailers are pouring their heart and budget into hitting sales targets, only to watch a third of that revenue disappear due to inefficiencies and refunds. It's demoralizing to be a retailer these days. It doesn't have to be this way! Here's the playbook we used to help that company recover over $6.8M in just 4 months: Most retailers focus on the wrong metrics, for example they celebrate $10M in sales while silently losing $3.2M to returns, and another $1M to operational inefficiency, plus $800K to return fraud and abuse. Quick observations: Your "best customers" are killing you! 37% of "VIP shoppers" are serial returners, they look great in your CRM but they're negative margin customers. We found one customer returning over $14K → this is totally preventable! This is our framework that we developed after working with hundreds of enterprise retailers in the past 5 years: Prevent returns Enable size/style swaps and allow for uneven exchanges (more expensive or cheaper options) Store credit options instead of refund Relevant product recommendations for exchange and upsell Analyze the return reasons by product - this can save you a lot of products from being returned! Results: Over 60% reduction in refunds b) Prevent fraud and abuse Fraud rules to prevent return abuse Automate policy enforcement and verification of product quality before the product is sent back Product inspection workflows at the warehouse level Results: the highest we seen last year for a customer was over 90% c) Streamline Operations Setup rules for returns routing to the closest warehouse or outlet stores Minimize clicks and enable a scan, scan, refund workflow Centralize all returns data and actions into one system, to prevent system switching Results: 42% faster processing Returns are not a cost of doing business. They're a goldmine of hidden opportunities. But here's the truth: Most retailers will read this and do nothing. They'll keep losing millions because "that's just ecommerce." The smart ones will see this as the competitive advantage it is. What side do you want to be on? P.S. If you're a retail executive seeing 20%+ return rates, DM me. I'll share our full framework as it’s way more detailed.

Returns. It’s a topic that keeps coming up—and for good reason. They’re costing retailers a staggering $890 billion a year, according to a recent Retail Dive article by Nate Delesline III. The piece really got me thinking about how retailers are responding to this growing challenge. Then I came across Neil Saunders' post on LinkedIn, which revealed that 62% of apparel returns happen simply because items don’t fit properly. It’s a double-edged sword—frustrating for customers and costly for retailers. You can find links to both the article and Neil’s post in the comments. So, how do we flip the script on returns? Let’s start with technology. AI-driven tools like virtual try-ons and personalized size recommendations have the power to ensure customers make the right choices before they even click “buy.” It’s about cutting down returns before they happen. But what happens when a return is inevitable? This is where opportunity knocks. Returns don’t have to be a dead end—they can be part of a bigger, more sustainable story. Think resale programs, donation initiatives, or even recycling materials. Not only does this reduce environmental impact, but it also aligns with today’s consumers, who are increasingly eco-conscious and value-driven. Transparency is another game-changer. Clear product descriptions, accurate sizing guides, and honest reviews build confidence and minimize guesswork. When customers trust they’re getting exactly what they expect, the likelihood of returns drops significantly. At T-ROC - The Revenue Optimization Companies, we’re taking the next step in tackling these challenges head-on with something truly exciting: Retail360 powered by T-ROC. This cutting-edge tool is designed to give retailers deeper insights, smarter solutions, and game-changing strategies. From predicting purchasing patterns with precision to equipping teams with actionable data, Retail360 reimagines the retail experience entirely. And this is just the beginning. We’re working on something big—stay tuned as we roll out more transformative solutions to help retailers turn challenges into opportunities. So, let’s talk. What’s your take on the future of returns? Are you seeing innovative strategies making a difference in your business? I’d love to hear your thoughts—drop them in the comments below, and let’s keep the conversation going. #innovation #retailstrategy #retailindustry #customerpainpoints #customerexperience #retail360 #retailsolutions

For every $1 billion in sales, #retailers lose $145 million to #returns. That’s nearly a 15% return rate—a massive drain on profitability. But here’s the opportunity: reducing returns by even 1% could save millions and transform how customers perceive your brand. My last post centered on why the returns experience is a critical differentiator, but that doesn't mean it should be encouraged. While merchants may shy away from this metric, consumers value it, especially when alternative options are just a click away. Amazon’s approach to flagging frequently returned items is just one example of transparency shaping customer trust. They do this while still providing a seamless returns experience. AI is revolutionizing how we tackle this $743 billion problem. From more intelligent product recommendations and fit prediction tools to AI-powered customer support that resolves issues without returns, technology is reshaping the returns landscape. Returns are no longer just a cost of doing business—they’re an opportunity to differentiate. It’s time to move from reactive to proactive, using AI to anticipate, incentivize, and plan better outcomes for retailers and customers. What’s your take on how #AI can minimize returns while enhancing the customer experience? Let’s discuss it! #RetailReturns #CustomerExperience #AIinRetail #ECommerceInnovation #RetailTech #OperationalExcellence #CustomerTransparency #RetailDifferentiation Invisible Technologies Jay H.

65% of customers buy more often from brands with easy return processes, according to data from Forrester. However, most retailers running on legacy OMS platforms simply can’t deliver the returns experience customers expect. Not even close. This is because most of these systems don’t even support the basics: return tracking, case numbers, and automated packing slips—which are the exact features Forrester linked to higher purchase frequency, and without them, customers hesitate to buy again. When shoppers can’t tell if their return was received or when their refund is coming, it creates doubt. That doubt delays (or completely deters) the next purchase. At Pipe17, we’ve seen how integrating returns directly into order operations changes everything. Support teams don’t have to jump between systems. Connecting these disparate systems, gives support teams full visibility into return status, refund progress, and shipment updates in one place. They can in turn leverage this to simplify the return process. Retailers that treat returns as part of their order operations, rather than a separate process, tend to see stronger repeat business. Because when return workflows are connected, customers don’t need to think twice before ordering with confidence.