Have you thought about how your warehouse return process is affecting your business growth? With the holiday season quickly approaching, this article is worth the read.
Another informational piece we found from F. Curtis Barry & Company.
Identify return costs
Returns cost more than orders to process. Identify these operational costs:
- Processing – to unload returns; process the return through all customer service and merchandise disposition steps; merchandise put away for future picking.
- Refurbishing – products such as apparel items require processing to prepare them for resale. You’ll have to rebag and rebox the product, too.
- Processing new customer shipment – for exchanges, which can be as much as 30% of the returns received; labor, materials and shipping costs.
- Merchandise expense – if the item is damaged during the fulfillment.
- Lost gross margin on a sale – if not an exchange.
- Customer confidence – potential loss of customer and lifetime value caused by poor return handling, damaged or poor product quality
Consider these costs as you look to improve the process.
Read the rest of Brian’s post about Warehouse Returns for your E-commerce Business at