Retailers unhappy with return processes, costs ‘significant to severe’


The report, Frictionless Returns: The Missing Piece of the Ecommerce Experiencesurveyed 50 large retail organizations with more than $1 billion in e-commerce sales. Eighty percent of respondents say the cost of managing product returns is “significant to severe.” Storage space and equipment costs were identified as the main cause (30% of respondents), followed closely by labor costs (26%).

Although 70% of respondents are dissatisfied with their returns process, they understand what is needed to reduce costs. The obstacle is that they are equipped with inadequate technological solutions.

“Nearly three-quarters of respondents say more automated returns management processes will improve employee and customer experiences, while helping to reduce costs,” said Gaurav Saran, CEO of ReverseLogix. “This includes automated refunds for consumers, the development and optimization of multiple return channels, and the automation of receiving, inspection and processing processes.”

The main solutions used by respondents to manage product returns are warehouse management systems (WMS) at 30% and enterprise resource planning (ERP) systems (24%). Only 6% of respondents use a purpose-built end-to-end returns management system.

“There is a big gap between what is needed to improve return processes and the capabilities of WMS and ERP solutions,” Saran said. “The good news is that proven returns management technology exists today. It can be quickly implemented and have an almost immediate impact on costs, returns processing, customer satisfaction and worker productivity. “With the rise of online shopping and consumers expecting a frictionless returns experience, retailers can’t afford to limp with outdated systems.”

Additional findings include:

  • Although self-service returns for customers can reduce costs, they account for less than 30% of returns.
  • More than half (54%) of respondents rate their ability to identify reasons for higher-than-expected rates of return as “poor to moderate.”
  • 94% of respondents try to manage product returns with inadequate tools, such as a WMS, ERP, logistics management system or CRM.
  • The complete list of the most important cost factors are: warehouse space and equipment (30%), labor costs (26%), customer service team (10%) , the processing of in-stock returns (6%) and unsellable returns (4%).

The full report is available at

About ReverseLogix
ReverseLogix is ​​the only end-to-end, centralized, fully integrated returns management system designed specifically for retail, e-commerce, manufacturing, and 3PL organizations. Whether B2B, B2C, or a hybrid, the ReverseLogix platform facilitates, manages, and reports on the entire returns lifecycle. Organizations that rely on ReverseLogix deliver a vastly superior customer feedback experience, save employees time with faster workflows, and increase profits with 360⁰ insight into feedback data. For more information, visit

Media Contact
Chuck Furst
[email protected]

SOURCEReverseLogix Corp


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