What Does the Future of E-commerce Return Management Look Like?

True omnichannel solutions that connect the online and physical retail spaces via a digital-first shopping experience can enable retailers to spread out the space needed to process returns while potentially speeding up the process of getting returned products turned around for re-sale.

Fremont, CA: During the Coronavirus pandemic, retailers struggled to keep up with the dramatic increase in return volume. Despite having smaller workforces as a result of social distancing and cooperating with repeated lockdown orders, retailers have worked hard to scale operations to meet increased demand. At the same time, many retailers have extended the standard 30-day return policy, often going beyond 90 days, in order to keep customers happy and ensure positive online experiences in an era when in-store shopping isn't always an option.

Despite having smaller workforces as a result of social distancing and cooperating with repeated lockdown orders, retailers have worked hard to scale operations to meet increased demand. At the same time, many retailers have extended the standard 30-day return policy, often going beyond 90 days, in order to keep customers happy and ensure positive online experiences in an era when in-store shopping is not always an option.

The amount of returned merchandise is literally piling up. As digital-first retail continues to take center stage in 2021, it is clear that e-commerce return management is an area brand, as well as retailers, can no longer afford to ignore.

Optimizing the Reverse Logistics Operation

In 2021 and beyond, retailers must make the returns process as simple, clean, and efficient as possible. It is critical to ensure that the proper processes and infrastructure are in place to support this critical stage of the customer journey in order to close sales and inspire customer loyalty.

Omnichannel Approach to Returns

With the increased shift to e-commerce in 2020, warehouse space, including space for returns processing, is in high demand. According to CBRE, the additional warehouse space required to process the rising return rate could amount to 400 million square feet over the next five years. True omnichannel solutions that connect the online and physical retail spaces via a digital-first shopping experience can enable retailers to spread out the space needed to process returns while potentially speeding up the process of getting returned products turned around for re-sale.

Significant investments in omnichannel solutions are increasing as retailers prepare for a post-pandemic new normal. Many retailers are shifting away from monolithic distribution hubs and toward a network of alternative fulfillment points (including store fulfillment, micro-fulfillment centers, pop-up distribution centers, and so on) in order to optimize store inventory, enable faster delivery, and even provide more convenient return options. In-store returns, designated drop-off points, and "at-home pick-up" options are all examples of how retailers are removing one of the most significant drawbacks of online shopping.