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Returns Management

Successful returns management is more than just the simple processing of returns. It offers the opportunity to convert a dissatisfied buyer into a satisfied, long-term customer. In addition, good returns management has a direct positive effect on stocks, cash flow and profitability. The speed with which returns are processed and prepared for sale is crucial to a company's success, especially during seasonal peaks. Efficient returns management therefore makes a significant contribution to customer satisfaction and the optimization of business processes.

Seasonal challenges in online retail

The clothing industry has been facing a high rate of returns for years. On average, around 30-50% (source: Retouren Statistiken, Zahlen & Fakten 2022/2023 – CareElite) of clothing and accessories ordered online are returned. These figures continue to increase seasonally: for example, during the Black Friday weekend or Christmas sales, returns rise significantly due to increased purchases and gift items. In 2022, returns after sales had already risen by 130%. This trend continued in the following year: returns rose by a further 145% in 2023. (source: Rise in Returns Expected After Black Friday & Cyber Monday – eCommerce News) The reasons for returns are numerous: from incorrect sizes and unsuitable colors to poor fits. Many customers also order several items to choose from and only keep one – a practice known as “bracketing”, which causes serious logistical challenges for companies. The high return rate not only places a considerable burden on logistics, but also increases a company’s operating costs.

Efficient returns management in the clothing industry

DFT’s efficient solutions for returns management help to improve the customer experience, minimize operational costs and reduce the environmental footprint. During peak periods such as Christmas sales or Black Friday, the optimization of returns management becomes particularly relevant, as this can allow warehouse capacities to be better utilized and sales to be maximized. Our hanging conveyor technology and pocket sorter solutions are an efficient way of processing returns quickly and making them available for sale again, especially for companies in the clothing industry that have to deal with extremely high return rates. Pocket Sorter combined with dynamic buffers in particular make it possible to integrate returned items quickly and efficiently into the new order processing workflow. This reduces storage times and improves product availability.

The internal return process in detail

Das Bild zeigt die Kontrolle eines Paketes im Retourenmanagement.

1. quality control

Returns are checked on arrival and subjected to quality control. Damaged items are either refurbished or sorted out.

2. dynamic buffers

Items that are particularly popular, the “fast movers”, are quickly made available for new orders and efficiently stored temporarily in dynamic buffers. On this way they can be resold immediately without returning them to their original storage location.

3. Einlagerung

Items with low demand, so-called “slow-moving items”, are stored in the regular storage system after processing, whereby seasonal products are usually stored in mixed containers.

DFT product portfolio in the field of returns management

AutoPocket®

AutoPocket® is a new innovative intralogistics solution in the pocket system segment for sequencing and sorting of eCommerce and store supply tasks.

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EcoPocket®

DFT's EcoPocket® system consolidates streams of items from storage locations, sequences order items and intelligently controls them for the packaging process.

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EcoFlow®

Powerful and intelligent in transport and sequencing of hanging garments (GOH). The adapter system can be combined with DFT's pocket system EcoPocket®

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GarmentFlow®

The GarmentFlow® system conveys, separates and picks clothes hangers in high volumes and with high throughput.

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