Are returns decreasing your proﬁts?
Challenges faced by retailers with omni-channel explosion
Consumer satisfaction increasingly includes services surrounding the product, such as return policies.
Boost of e-commerce also means a rise in returns. Over $260 billion in returned goods in the US in 2015.
Online return rates are 3X higher than Brick & Mortar (30% vs 9%).
The expense of return processing ranges from 20% to 65% of COGS.
The average retailers’ reverse logistics costs are equal to 8.1% of total sales.
Retailers are missing opportunities in:
Correctly assess the cost of returns and integrate the information into their forecast and planning processes.
Properly deﬁne pricing strategies and work with precise inventory levels.
Avoid preventable returns and transform returns into potential revenue.
Integrate return goods in available inventory and allocate according to demand in a timely manner.
Manage reverse logistics eﬃciently to avoid markdowns and liquidations.