Importance of Automation for Curbing the Cost of E-Commerce Returns

E-Commerce Returns

There are some changes that people have experienced in 2020 that are here to stay. Of course, by all accounts, the growth of e-commerce is one of them. Customers that are new to online shopping at the start of the coronavirus pandemic actually experienced a level of convenience they never really known before. Now, up to forty percent intend to continue post-COVID.

This is something that has created a big spike in e-commerce requirement, a space that was already seeing steady growth. Online sales were just under that of twelve percent of all retail sales before the pandemic; now, they are somewhat sixteen percent and so on. The point is it is time that the companies think about return automation.

It is because buying things has always associated with a certain percentage of them being getting returned. Factor into that people buying things sight unseen, and you are definitely going to have more returns. In fact, e-commerce sales have actually up to a thirty percent returns rate, that is even higher with vacation purchases. Bringing such types of individual items back into warehouse inventory is somewhat complicated and also expensive. Along with normalized type of e-commerce, comes greater level of logistics challenges which are both outbound and inbound.

Growing Costs 

What are the costs linked to returns? One is depreciation, that actually differs across different product types. For example, apparel loses somewhat twenty to fifty percent of its value over an eight- to sixteen -week period. It is quite a sizable and straightforward expense to consider. Here even biggest and more complicated expense is the labour required to bring products back into that of the warehouse. Contrary to stock replacement that comes from manufacturers in neat, QC-ed pallets, returns come in that of individually and directly from customers.

The point is these need to be inspected by a person, cleaned, and even that of returned into physical and digital inventory. This is somewhat a highly labour-intensive procedure at a time when warehouse labour is untrustworthy because of COVID fears and that of even restrictions. Furthermore, most of such role used to be carried out by retail store labour. Consumers brought returns into stores wherein associates managed accepting products back into that of the system. Warehouse associates simply had to place the item back on the warehouse shelves. Now, the warehouse needs to manage each and every step of bringing in a massive volume of random goods that reached in a variety of conditions. Here ecommerce return automation can be really helpful if you use it in your business.

Efficiency   of the Wearhouse

Automation can massively reduce the costs of bringing products back into the warehouse, known as that of reverse logistics. The hugest component of these costs is that of hourly wages spent on folks taking a product from its re-entry back to that of a shelf in the warehouse. This is a repetition, and hence highly automatable task.


To sum up, since you have a fair amount of idea about how things work, it is time that you use branded return page for your business.  And when you do that, automation is a must.

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