NEXT GENERATION REVERSE LOGISTICS
AND RETURNS PROCESSING SOLUTIONS

REPRESENTING A SIGNIFICANT EXPENSE

On average eCommerce operators experience a return rate of nearly 25%. The growth of eCommerce has changed the way consumers shop which is dramatically impacting the returns industry.  According to the Wall Street Journal consumers were expected to return $70.5 billion worth of goods purchased during the 2020 Christmas season alone.

Returns represent a significant amount of expense and unrecognized inventory that is just sitting unprocessed. In many instances, it is also headed toward the end of its premium sell value. If it is fashion, it could be on the brink of going out of season, or in high fashion, even out of style. If it is other seasonal goods, they could be about to suffer the same fate and be approaching relegation to the clearance sale at a fraction of their original sale price. When it comes to perishable items, it could be nearing its sale by date at which time it would become completely worthless and need to be trashed resulting in a total lose. No matter which of these circumstances, the outcome is a hit to the bottom line.

Customer packing a return

PREPARING YOUR BUSINESS FOR AN INCREASE OF RETURNS

Not all eCommerce companies are set up to process returns. Much of their time and dollars have been invested on how to process orders in a timely manner and deliver on the customers’ desire for getting their merchandise, fast. If the customer is in doubt as to size, flavor, color, or any other aspect of an item, they often order multiples and return those they don’t want. To remain competitive in the highly aggressive eCommerce market the seller must allow for returns in all but the rarest of cases. The time and expense to process those returns must be taken into account when pricing the items that are being sold. Therefore, to be successful the company must find a way to do so that is efficient and timely while maintaining its focus on customer service. The solution must fit into the overall workflow and not be an ad hoc stand-alone system that does not provide the necessary intelligence and automation to streamline the process.

MANUAL RETURNS PROCESS OVERVIEW

There are several steps involved in processing a return and getting it back into inventory.

STEP 1

The package is scanned into the WMS so the appropriate customer account is credited if the item is in acceptable condition.

STEP 2

The package is opened and the item is examined. If the item is acceptable, the account is credited and the customer notified. If the item is not acceptable, the customer is notified.

STEP 3

If the item is in a condition to be restocked, it is sent to the sort area where it is sorted, placed back into inventory for resale.
Online shopper making a purchase

EFFECTS OF MANUAL RETURNS PROCESS

When these steps are done manually, they are not only time and labor intensive; they also take up a significant space. All too often given the effort and time involved to restock the items, the end result is returned items that have been credited back to the customer, but languish in the corner rather than being restocked until they are of reduced value. The customers that returned them are often given credit upon scanning the return label with no actual inspection of the product since to wait until that time would result in an unacceptable delay due to the backup, or if the inspection is done, long before the item is restocked.

AUTOMATED RETURNS PROCESS IS FASTER WITH LESS LABOR

STEP 1

The package is scanned into the WMS so the appropriate customer account is credited if the item is in acceptable condition.

STEP 2

The package is opened and the item is examined. If the item is acceptable, the account is credited, and the customer notified. If the item is not acceptable, the customer is notified.

STEP 3

If the item is in a condition to be restocked, the item is placed on the Sure Sort® induction belt, where the item is automatically scanned. The items are loaded into a container and taken to the storage area.
Sure Sort eCommerce order sorter

STREAMLINED RETURNS HANDLING

Sound familiar? It should. The Sure Sort® automated sorting solution accomplishes the same steps but with fewer people in much less time and space with much greater accuracy. One operator is capable of inducting up to 2,400 items per hour. Depending on the number of returns, an additional person or two may be required to assist with collecting the returned merchandise from the bins of the machine. By adding intelligent automation to the returns process, companies can reduce the risk of return fraud.

By automating the returns process with the right solution, business can get goods back into inventory in a timely manner and help boost the company’s bottom line.

LEARN MORE ABOUT OPEX AND OUR SOLUTIONS FOR RETURNS PROCESSING
AND REVERSE LOGISTICS