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)

Returns management: logistics and costs at a glance

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

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.

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 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. Storage

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.

Technologies and Automation for returns

To maximize efficiency in returns management, we rely on technologies such as dynamic buffer storage, automated bags and innovative RFID systems. The use of these technologies enables returned items to be quickly identified, sorted and returned to the warehouse stock or directly to the resale process. This increases the efficiency of the entire returns process and significantly shortens the time to resale.

Dynamic buffers

With the help of dynamic buffers, returns can be temporarily stored and then seamlessly integrated into the new order processing workflow.

Smart Pockets

The automated load and auto-drop mechanism of the AutoPocket® enables items to be dropped at full speed. This increases the speed of returns processing and reduces the number of manual interventions to a minimum.

RFID technology

Throughout the entire process, the use of state-of-the-art RFID technology ensures seamless real-time monitoring and documentation. Individual items can be tracked precisely and efficiently at any time.

DFT product portfolio in the area of returns management:

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.

Das Bild zeigt eine Frau, die mit einem Handscanner Retouren der Bekleidungsindustrie prüft.

The AutoPocket® - efficient solution for your returns handling

White fabric garments hanging on black hangers attached to a conveyer system in a bright, industrial setting, suggesting a clothing manufacturing or processing facility. The garments appear to be in motion along the conveyor.

The AutoPocket® is the ideal solution for returns management, as it enables efficient and automated handling of returns with the help of dynamic buffers. The system allows items to be sorted and stored quickly and accurately, significantly reducing processing time and minimizing manual intervention. The AutoPocket® is a flexible and scalable solution that can be adapted to different volumes and requirements.

Learn more about the AutoPocket®