This page has been adapted from the March/April 2022 issue of Supply Chain Management Review.
Returns are a proverbial mess for all but the most accomplished retailers. Going forward, part of a company’s reputation and success will be a reflection of the sophistication and responsiveness of their returns strategy and processes...
As head of RLA, [Tony] Sciarrotta advocates programs that reduce returns rates. Many of them address discrepancies between the 2-D and 3-D worlds of e-commerce.
Additionally, there are companies such as Newmine that advocate a proactive, preventative approach to returns through deep data analytics. The company’s approach is to use returns-relevant data to prescribe corrective actions for retailers so they can remediate issues that lead to returns in the first place.
Navjit Bhasin, founder and CEO of Newmine, offers five key benefits of reducing returns to start.
- Every $1 million return reduction adds $500,000 to the bottom line
- Improved margins due to fewer markdowns
- Cost savings in labor, shipping, and DC space
- Increased brand loyalty as a direct result of better buying experience
- Enhanced environmental sustainability
By the way, those five also generally apply to improved returns management. That is certainly something worth considering.