Cooling Down Returns: 3 Ways Retailers Can Streamline Their Reverse Supply Chain This Summer

The returns dilemma doesn’t appear to be going anywhere. According to Capital One, consumers returned $362 billion in merchandise from online sales and $324 billion from in-store sales during 2024. This equates to 24.5% of eCommerce sales and 8.71% of brick-and-mortar purchases.

As we progress toward the summer months, returns are only expected to become more of a challenge to brands. Vacations and refreshed summer wardrobes present a prime opportunity for fashion retailers to boost sales; they also bring a heightened risk of product returns.

There are several reasons why customers return products. One popular factor lies in bracketing, where consumers buy multiple items with the intention of only keeping one.  Other frequent causes include buyer’s remorse, dissatisfaction with product fit or quality, and receiving damaged goods directly from the retailer.

Ultimately, returns will never completely disappear. However, in our latest blog, we explore three ways in which retailers can begin to mitigate the damage done by returns to their bottom line…

Reducing Return Fraud Through RFID

Before even considering the challenges of managing returns themselves, retailers must consider the negative impact that return fraud can have. According to Appriss Retail and Deloitte, fraudulent returns and claims resulted in a $103 billion loss for retailers in 2024. Beyond the immediate financial loss, such fraud undermines customer trust, inflates operational costs, and can distort inventory and sales data, leading to poor business decisions. As a result, retailers may have to implement stricter return policies, which can negatively affect the overall customer experience and loyalty.

Item-level RFID enables retailers to track their entire inventory at item-level, with complete accuracy, in real-time. RFID allows brands to create effective supply chain and retail operations, streamlining manufacturing, transport and storage costs. It also enables brands to efficiently maintain shop floor stock levels. However, its value doesn’t end once products are purchased.

When customers return RFID-tagged items, in-store associates simply need to scan the product and they are provided with full product and transaction details. From here they can verify the original purchase and trigger the return.

In a world where returns fraud is on the rise, RFID is already playing a prominent role in effectively tracking and distinguishing return fraud attempts.

Managing the Reverse Supply Chain

Once a return is verified and processed, RFID tracking can allow retailers to clearly see products move through the reverse supply chain. This process can be made much more efficient through order management software.

Fragmented returns cause more issues for retailers than many might realise. The longer products spend in the reverse supply chain, the longer it takes to get them back to the sales floor. The longer it takes to get back to the sales floor, the lower their resale value. If this process takes too long, products cannot be resold at all.

However, with clear visibility of the reverse supply chain, and with the right order management software controlling the process, retailers can streamline the entire process. They can increase their returns management practices and ensure that items make their way back to the supply chain as quickly as possible. This allows brands to maximize the resale value of returned products, reducing losses.

Teamwork Commerce’s Returns Manager creates this efficiency while maintaining a high-quality customer experience.

It allows retailers to quickly and efficiently process returns and automatically refund consumers regardless of the original sales channel. Pre-approved return codes included with shipping documents allow customers to easily return or exchange items with minimal effort.

Taking Steps to Stop Returns at the Source

While returns will always exist, that doesn’t mean they can’t be reduced. Retailers can take steps to increase the likelihood of customers keeping their products by meeting their product expectations right away.

One way retailers can achieve this is through personalization.

By helping store visitors source the perfect products on their first attempt, retailers can begin to reduce the frequency of the need for customers to return items. Equipped with a Secure Customer Relationship Management (CRM) platform, retailers can leverage secure data to better understand their customers on an individual level.

They can easily see purchasing preferences through transaction history, and make recommendations based on reliable information. Whether through sizing, colour or style, retailers can help customers find the right product, quickly. This reduces the need to exchange items or even bracket their purchases.

Overall, customers receive a better experience, and retailers can minimize the damage of returns.

Small Steps Make a Big Difference

Retailers can mitigate returns this summer in a variety of ways. Each solution has its own individual benefits, but when combined, brands can significantly reduce the impact of returns and improve their bottom line.

Interested in seeing how Teamwork Commerce can help your retail brand reduce the negative impact of returns on your retail business? Get in touch today.