{"id":105,"date":"2018-09-19T08:06:28","date_gmt":"2018-09-19T08:06:28","guid":{"rendered":"https:\/\/brightpearl20.wpengine.com\/are-you-ready-for-the-returns-tsunami\/"},"modified":"2025-05-20T11:25:16","modified_gmt":"2025-05-20T11:25:16","slug":"returns-readiness-self-assessment","status":"publish","type":"post","link":"https:\/\/www.brightpearl.com\/blog\/returns-readiness-self-assessment","title":{"rendered":"Are you ready for the returns tsunami? – Self Assessment"},"content":{"rendered":"

Whether it\u2019s due to mispacks, damaged goods, inevitable peak season returns<\/a> or services like Try Before You Buy<\/a>, there is a tsunami of returns coming and businesses like yours need to be ready for it.<\/span><\/p>\n

However, <\/span>our research<\/span><\/a> has found that more than half of all retailers (51%) claim their margins are being squeezed by returns, yet 69% are not deploying any technology solutions to help process them.<\/span><\/p>\n

This means that there are too many retail businesses who won\u2019t be flood-proofed before the tidal wave hits.<\/span><\/p>\n

But what exactly is a returns tsunami?<\/strong><\/h2>\n

It\u2019s estimated that <\/span>28 percent of holiday gifts<\/span> bought in 2017 were returned at a value of $90 billion, while it\u2019s said that it takes <\/span>an average of 7 people<\/span><\/a> to touch just one return. That\u2019s a huge amount of returned inventory<\/a> and money spent on a process that doesn’t increase revenue.<\/span><\/p>\n

Furthermore, initiatives like \u2018Try Before You Buy\u2019 (TBYB), should you choose to offer them, could increase returns even more. The TBYB model enables customers to order multiple items before deciding what they\u2019d like to keep with no upfront cost; they simply return anything that they don\u2019t want. But <\/span>our research into the TBYB trend<\/span><\/a> reveals that customers would return an average of over three more items each month with this sort of shopping model in place, resulting in a rise for the “serial returners” culture<\/a>.<\/span><\/p>\n

The final cause of a tsunami of returns lies in the avoidable returns. These are returns caused by incorrect items being shipped out, products being damaged in transit, or faulty goods received. Preventing these types of return are within your control, but they rely on efficient workflows, transparent policies, strong supplier relationships and effective inventory<\/a> and warehouse management systems<\/a> being present within your business. <\/span><\/p>\n

What does it mean for your retail business?<\/strong><\/h2>\n

Without the right systems and workflows in place, there are common pain points you may experience from a returns tsunami hitting your business:<\/span><\/p>\n