5 Ways to Be More Efficient with Post-Peak Returns 

Peak season doesn’t end once December is over — it continues into the new year as you manage the inevitable wave of holiday returns. These post-peak returns must be handled as diligently as order fulfillment to keep costs low and reduce the risk of fraud.

After the shopping rush, products flood back into the warehouse and present unique challenges that you and your third-party logistics (3PL) provider must prepare for, such as: 

• Higher return volumes
• Returns with gift receipts that require special handling
• Maintaining inventory accuracy while still meeting ongoing demand
• Managing exchange requests as consumers want a different size, color, or style

The Cost of Returns

Returns are an ongoing challenge for many retailers, with 41% of retailers surveyed by WSI and Retail Dive’s studioID saying they experienced difficulties with the returns process. Considering that nearly 18% of the goods purchased online get returned, costs can quickly spiral out of control if returns are poorly managed.

Retailers must implement returns management processes so that products can be quickly put back on shelves for restocking and reselling as soon as they re-enter the warehouse. However, efficient reverse logistics begins with your 3PL. 

The right 3PL will help retailers gain full visibility and control over their returns. But what should brands look out for in a partnership to ensure that reverse logistics have been streamlined? Here are the steps your 3PL should take to ensure proper returns management.

1. Dedicated Return Stations for Faster Processing

By creating separate stations for returns, your 3PL can dedicate specific resources, technology, and staff to handle the products coming back to the warehouse. This streamlines the process and reduces the probability of errors. As each item is assessed for the next step — restocking, repair/refurbishment, recycling, or disposal — the regular flow of goods can continue in the main warehouse without disruption. 

2. Well-defined SOPs for Consistent Processing

For consistency and quality control, your 3PL should establish clear standard operating procedures (SOPs) regarding product condition, cleaning, refurbishment, donation, disposal, and more. With SOPs to follow, employees will understand how to handle returned inventory. Products can be reintegrated into inventory sooner with no issues. These well-defined steps and actions maximize the value and longevity of your inventory.

3. Fraud Detection to Secure the Supply Chain 

To detect and deter fraud, your 3PL should have a way to analyze return patterns, track irregular return behaviors, and identify anomalies. By working closely with you to share insights about potentially fraudulent activities, your 3PL can help you stay on top of potential risks and coordinate possible responses. This enables you to minimize financial loss and reduce the total cost of processing and managing returns.

4. Multi-Carrier Logistics to Boost Flexibility

Multi-carrier strategies allow brands to choose the best shipping rates, accelerate delivery speed, reach customers more efficiently, and safeguard against potential disruptions. Be sure your 3PL is prepared to adopt strategies that allow them to work with multiple carriers. This offers greater flexibility, cost savings, and the opportunity to compare carrier performance over time to see where you receive the most value and benefit.

5. Technology to Drive Accountability

The right technology can be a game-changer when managing return logistics during and after peak season. Robust technology solutions provide:

• Real-time tracking capabilities. Tracking for returns gives your brand and customers visibility into the status and location of shipments headed back to the warehouse. That way, you can manage expectations in terms of refunds and exchanges. 
• Data analytics. The data provided by your 3PL should help optimize return processes, identify return trends, and pinpoint potential areas to improve returns down the road.
• Order management systems (OMS). An OMS helps automate parts of the return process for faster approval and evaluation of returned items.
• Returns management platforms. Dedicated returns management technology allows you to automate and streamline return processing to speed up inspections, sorting, and restocking.

How WSI Ensures Streamlined Reverse Logistics

At WSI, we’ve made considerable investments in reverse logistics to ensure efficient, cost-effective, customer-focused returns capabilities for our retail partners. Here are just a few of the ways we can help retailers improve returns management.

• Advanced order management technology. Our retail partners gain the benefits provided by our advanced warehouse management system and other logistics technology, including real-time visibility and tracking, two-way syncing of inventory data, and more. 

• Seamless returns processing. We integrate our returns workflows directly into our WMS, including a specialized user interface for returns that provides up-to-date information on in-process returns. With integrated inspections and optimized, automated workflows, our returns management process ensures real-time updates on returned items from end to end. 
• Operational expertise and transparency. WSI takes a customer-centric approach to returns to ensure that your customers have an optimal experience that supports customer loyalty and brings them back to your brand again. We train dedicated associates on reverse logistics SOPs and special handling requirements to ensure that each return goes quickly and smoothly.

Start Your Peak Return Planning Now

Although smooth returns are vital to a successful peak season, the best way to process returns is to ensure they don’t happen in the first place. Your 3PL should be able to help you identify what’s driving returns — and whether your return rate is improving or declining over time — so problems can be addressed.

With an efficient post-peak returns process in place, you can be sure that products will be ready to sell soon after they’re sent back so you can maintain inventory and maximize revenue.