It seems Omnichannel retailers are continuing to feel the effects of lenient returns policies on their financial performance. Certainly recent research from Barclaycard confirms many retailers are struggling to handle high numbers of returns and the losses that accompany them.
Retailers claim that an average of only 25 percent of products returned are actually fit for resale and that many customer returns are worn, marked or even have missing parts, ultimately making them unfit for resale through what could be considered a new form of ‘friendly fraud’ behaviour.
In a bid to retain customer loyalty most retailers currently honour policies and issue refunds, even when a product has been returned in unacceptable condition. Brand value and perception is key to retail however the increasingly high numbers of returns, the lost yield through this ‘friendly fraud’ and the costs associated to manage matters are proving to be a serious and worrying issue for retailers.
Here at Bis Henderson Consulting, we help retailers keep their customers satisfied with smooth and effective reverse logistics process that enable the efficient return of products whilst measuring actual product profitability.
Talk to our logistics consultants about technical inventory management
Finding disposition routes for returned goods that cannot go back to stock is just one of the areas the Bis Henderson Consulting team can support you. Our comprehensive and experienced inventory management team offers omnichannel retailers help in identifying returns rates and product profitability by category and if need be down to an individual product level as well as helping spot problem products and avoiding future merchandising errors.
Get in touch with one of our logistics consultants to discuss how we can assist you.