Technologies Provide Huge Savings for Retailers When Items Returned

For instance, online apparel seller Revolve, using software from OrderDynamics that tracks returns by week, brand and product size, recently determined that a size chart for a new brand it was carrying wasn’t standard, so items didn’t fit well. The retailer replaced the chart, and the problem was solved. “A 1-percent reduction in returns can translate into a half-percent of additional profitability for the company,” says David Pujades, Revolve’s chief operating officer.

Stage Stores bought a system from NCR that matches bar codes of items customers order with items being packed to be shipped from its warehouses—that last-minute double-check keeps simple mistakes from becoming costly returns. Such investments have paid off: Stage’s online return rate has declined from 16 percent two years ago, to 13 percent, according to Hunter. “For us it’s a benefit in the millions of dollars,” he says.

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