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returns

How to minimise and manage returns

From damaged goods to customer indecision, managing returns effectively is critical to maintaining profitability. But returns don’t have to be a problem—they can be an opportunity. By taking a strategic approach, you can minimise returns, optimise the handling process and turn them into a competitive advantage. 

The hidden impact of returns

Returns are more than just an inconvenience—they can be costly in ways you may not realise:

  • Operational costs: Processing returns involves labour, logistics, and restocking expenses,.
  • Profit erosion: Items often lose value when returned, leading to markdowns or even write-offs.
  • Return fraud: Fraudulent activities such as wardrobing cost businesses billions every year.
  • Disrupted logistics: Reverse logistics is far more complex than forward shipping.

Understanding these challenges is the first step to overcoming them.

Warehouse Forklift

1 in 5 online purchases are returned


How to tackle common challenges with returns

1. Managing the logistics

Returns can create a lot of logistical challenges, especially when they involve multiple couriers, international shipments, or complex reverse supply chains. Without a clear system in place, errors like shipping delays, incorrect addresses, or mismatched inventory can quickly arise.

How technology can help:

  • Courier integration: Automatically generate return shipping labels and consignment numbers to streamline the process.
  • Delivery rules: Automate courier selection based on destination, weight, or size, ensuring the most cost-effective and reliable options are always chosen.
  • Real-time tracking: Offer customers transparency and control by providing return tracking information from their door to your warehouse.

By automating key steps and integrating with courier services, you can reduce errors, speed up returns, and maintain customer satisfaction.

managing the logistics of returns
managing inventory levels to improve returns

2. Keeping inventory accurate

One of the biggest pitfalls of returns is failing to update stock levels promptly and accurately. This can lead to overselling products you don’t actually have or over-ordering replacements for items already in your warehouse.

How technology can help:

  • Real-time inventory updates: Ensure stock levels adjust automatically as returns are processed.
  • Returns categorisation: Track the condition of returned items (e.g., resellable, damaged, refurbishable) to decide how to handle them efficiently.
  • Stock insights: Use analytics to predict which returned items are most likely to sell again, helping you prioritise restocking

With the right system, your inventory stays accurate and ready to meet demand—even during peak return periods.

3. Minimise future returns

One of the biggest pitfalls of returns is failing to update stock levels promptly and accurately. This can lead to overselling products you don’t actually have or over-ordering replacements for items already in your warehouse.

How technology can help:

  • Return analysis: Identify trends in return reasons to address recurring issues, such as unclear product descriptions or poor packaging.
  • Proactive alerts: Receive notifications about spikes in returns for specific items, allowing you to take immediate action.
  • Customer feedback loops: Integrate returns data with customer service tools to gather feedback and address problems before they escalate.

Harnessing these insights allows you to make data-driven decisions that reduce returns and improve customer satisfaction.

minimising returns with technology

Bringing it all together

Managing returns effectively requires more than just a plan—you need the right tools to simplify processes, reduce costs, and provide a seamless customer experience.

That’s where Orderwise comes in. With features like integrated courier links, real-time inventory updates, and powerful analytics, Orderwise offers a comprehensive solution to tackle every challenge outlined above.

See how Orderwise customers are mastering their returns.

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