Efficient returns management – solutions for smooth returns

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.

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Seasonal challenges in online retail

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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

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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

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1. Quality Control

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

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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

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:

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