Seasonal challenges in online retail

A person in a red checkered shirt places red and white sneakers into an open cardboard box, engaging in efficient returns management. Nearby, closed and open boxes sit on a wooden table amidst scattered packing materials. Shelves adorned with plants are visible in the background.

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.

 

A person with glasses skillfully operates a handheld device near clothes covered in clear plastic, hanging on a conveyor system in a dry cleaning facility, seamlessly integrating efficient returns management into the process.

The internal return process in detail

A blank black square symbolizing an absence of visible content, akin to the void left in returns management when theres a lack of efficient systems.

1. quality control

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

A black silhouette of a person with short hair, wearing sunglasses and a beard, looking to the right, against a white background—evoking thoughts on the seamless artistry of returns managements precision and contrast.

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 sorter segment for sequencing and sorting of eCommerce and store supply tasks.

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Ein High-Tech-Lagerhaus mit automatisierten Autopocket-Systemen. Förderbänder transportieren Pakete über mehrere schwarze Rutschen, von denen jede ein wichtiger Bestandteil des organisierten Sortiermechanismus ist. Die Decke ist mit Metallstützen und elektrischen Leitungen ausgekleidet, um einen reibungslosen Betrieb zu gewährleisten.

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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A conveyor system in a warehouse setting transports multiple white and black tote bags, suspended from overhead rails. The setting is spacious, with a steel framework and high ceilings. The bags appear to be moving swiftly along the conveyor system.

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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Close-up view of a textile manufacturing machine with wires and mechanical components. The machine is actively processing fabric, pulling it through. Red indicator lights and various cables are visible in the background.

GarmentFlow®

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

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Close-up of an industrial garment conveyor system with gray suits on hangers. Each hanger has a barcode tag attached. The system is in a modern, well-lit facility with metal components.

EcoTrolley

The EcoTrolley is DFT's manual conveyor system and is the perfect solution for the manual transportation and storage of hanging garments. The garments can be moved directly with hangers or via the carriers on the sliding tubes. The specially designed switches and crossings enable individual routing and optimum use of available space.

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