How to Reduce Your Return Costs
With “free, no hassle returns” comes a cost, but there is a new solution to help reduce return costs. Retailers are kicking it up a notch with AI and smart logistics. As consumers continue to shop online and from their smartphones, returns increase. As a result, almost 30 percent of e-commerce orders are returned, and logistic leaders are searching for ways to solve this labor-intensive process.
The Trillion Dollar Return Problem
That’s right. The returns in e-commerce have skyrocketed to nearly a trillion dollars with the jump in e-commerce thanks to the pandemic and other socio-economic issues. Which in turn cuts into your profitability and may make “free returns” more of a hassle. According to Supply Chain 24/7, “The average cost of an e-Commerce return, regardless of the item value, ranges from $20.75 to $45.25, when factoring in the costs of transportation, processing, and markdowns/liquidation to resell. To reduce the impact of these costs, retailers need to focus efforts on increasing the resale of previously purchased goods.”
How AI is Powering Profitability
Some companies implement reverse logistics to minimize loss and build customer loyalty and repeat business. But, on the other hand, you want to keep your returns moving to reduce waste. Hence, AI-powered reverse logistics have been introduced to help your e-commerce business or 3PL expedite the resale of returns with reduced processing time and robotic automation.
The New Age of Return Management
Every part of the supply chain offers economic value, including the reverse supply chain or return of goods. You can boost your bottom line by powering your supply chain analytics using artificial intelligence because returns management can be messy and complex. When you minimize reductions in returns, you implement a sustainable business practice for the future.
There are several options for returns management software to help you power your reverse logistics. First, you want to look for software that can deploy automation to help you receive, identify, sort, and containerize large packages to automate the return to inventory process. Also, look for software that enables you to optimize and fine-tune that robotics workflow within your AI-powered returns process.
Finally, partner with a reputable reseller to maximize your return profitability. PCX can help. Sell us your electronic components today! Simply upload your inventory to get an offer immediately. We’ve been solving excess electronic components challenges for over 22 years and would love to help you solve your reverse supply chain problems.