A flexible, transparent, and sustainable returns policy is now non-negotiable for customer loyalty
The period following the Golden Quarter inevitably brings a tidal wave of returns, straining operations, inventory, and profit margins. This surge, covering everything from unwanted gifts to unworn party outfits, is a logistical reality that retailers must manage efficiently to protect the bottom line and keep customers happy, notes Tim Robinson, SVP, Orders & Returns, Blue Yonder.
The challenges are significant. Returns can overwhelm warehouse space and teams, often requiring extra budget and overtime, and risking merchandise ending up in landfills, especially for those relying on manual processes. This struggle can even disrupt outbound operations.
To tackle this, retailers must shift from treating returns as an afterthought to a core part of planning.
- Integrate Data: Most retailers allow customers to initiate a return but fail to use the associated process data effectively across the full product lifecycle. By capturing data at every stage—including the reason for return and the product’s condition—retailers enable smarter routing decisions.
- Determine Value: Unified, interoperable data shared across divisions helps determine whether an item can be resold at full price or must be routed to recommerce or salvage.
- Smart Policy Management: Better data also reduces the growing reliance on ‘just keep it’ policies. Smarter data helps determine when this is truly cost-effective for low-value items and when it isn’t, helping to reduce unnecessary losses.
Integrating returns into inventory forecasting helps teams understand what is coming back and why, informing future merchandise and product decisions. AI can also help speed processing and route items to the best resale channel.
A flexible, transparent, and sustainable returns policy is now non-negotiable for customer loyalty. Recent Blue Yonder research found that 84% of consumers say they will stop shopping at their favourite retailer if stricter returns policies are implemented.
Crucially, nearly three-quarters say they won’t return products if they suspect items will go to landfill, and nearly two-thirds are concerned about the wider environmental impact.
