FEATURE
Returns , a persistent challenge for retailers , have continued to increase due to the skyrocketing growth of online shopping and alternative shopping options . American consumers spent over US $ 800 billion shopping online last year , leading to an overwhelming number of returns that most probably left retailers scrambling . In the Philippines alone , the consumer goods e-commerce market is estimated to hit US $ 12 billion by 2025 .
As more shoppers continue to purchase items online for both convenience and safety purposes , retailers are considering new returnsprocesses that are sustainable and easy to manage longterm .
Retailers Question Whether to Keep the “ Keep It ” Returns Policy According to Zebra ’ s 13th annual Global Shopper Study , more than one-fifth of surveyed shoppers had returned an item purchased online , and up to 57 % of store associates felt significantly challenged by these returns . At the start of the pandemic , the volume of returns retailers received was so large thatsome businesses were opting to let customers keep their unwanted items rather than mailing them back . This is not an ideal long-term solution for most retailersas online shopping continues to be a mainstay shopping option .
At the same time , some pre-pandemic return policies are no longer considered sustainable due to the cost incurred when goods are sent back to the distribution center ( DC ). Whenever a consumer ships an item back to a DC , the cost of that item automatically increases and the margin of future sales is reduced . Therefore , retailers with physical storefronts are finding it easier for returns to be managed through their locations . Items can be processed for resale and reshelved faster , and some of the product ’ s margin can be salvaged . Some stores even opt to mark down returned items to expedite sales . Requiring customers to return their items to a brick-and-mortar location mayincrease the possibility of them purchasing additional items thereby making returns a potential revenue generator .
Enlisting the Help of Returns Management Companies
The COVID-19pandemicopened a new market for companies that focus solely on returns . These businesses have seized the opportunity to obtain relatively inexpensive real estate in shopping malls where storefronts are used to process customer returns on behalf of retailers and get items back on both brick-and-mortar and e-commerce “ store ” shelves . They can often process returns more efficiently than a retailer , thus mitigating some of the returns expense . Outsourcing the returns process may not be a realistic option for smaller retailers , but for larger oneswith a well-optimized reverse supply chain , this can be the perfect solution for managing returns .
How Retailers are Managing Returns during the Pandemic
Looking Forward
In light of the pandemic , retailers will need to substantially increase their technology investments to make the returns process as foolproof as possible .
One type of technology that retailers are beginning to depend on more and implement in their operations is radio frequency identification ( RFID ). RFID and other hardware and software solutions improve the accuracy of returns and equip retailers with the ability to develop in-house returns processes that deliver an overall better customer experience . Unlike traditional returns that requirestore associates to manually search for price tags and match them to a receipt , RFID readers allow stores to quickly and accurately process returns at the counter – even if the customer is unable to present a receipt or if the purchase cannot be located in the system usingthe customer ’ s credit or loyalty card . Retailers can also develop a process that allows the customer to place the returned item on a counter where the RFID reader isembedded or suspended aboveto instantly match the scanned RFID tag to the receipt .
In addition to improving the speed of the returns process and helping increase inventory accuracy , building RFID into a store ’ s operations can help retailers identify when someone is trying to return a stolen orcounterfeit item . RFID tags attached to the products can record a large amount of information required to execute anti-counterfeiting and source tracking operations . As such , a reliable track and trace process can be established to enable retailers with real-time traceability of their inventory from production to consumption . By being able to accurately decipher if a returned item was indeed sold at their stores , retailers will be more effective at stamping out fraudulent returns .
Even after the pandemic is long over , returns will likely remain an ongoing challenge that will need to be addressed .
Omnichannel retail is growing dramatically . Fortunately , technology has evolved in a significant way in the last few years , enabling retailers to find the right solution to support and improve their operations , returns included .
To learn more about retail solutions that are helping stores manage returns and keep up with growing e-commerce demands , click here .
ABOUT THE AUTHOR : George Pepes
APAC Vertical Solutions Lead , Healthcare and Retail , Zebra Technologies
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