The concept of returning items you don’t want or don’t fit dates back to catalog sales. Retailers were forced to cope with large volumes of returns, becoming experts in the art of reverse logistics, and the situation has only gotten more intense with the rise of newCommerce. It’s not uncommon for online retailers today to experience return rates of up to 33% of sales. When it comes to returns, it’s not just a matter of increased orders, it’s the number of items per order that is rising as well. Additionally, online retailers must step up their ability to assess the condition of merchandise and the reason for its return. That requires a much higher level of communication with the customer. All of this is taking place against a backdrop of labor scarcity. With nationwide unemployment, likely to dip below 4 percent in the coming months, it’s becoming increasingly difficult for warehouses to find people willing to perform the repetitive tasks that are common to warehouse work.
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