‘Free online returns’ come with a hefty price tag. Last year, online returns cost the US retail industry over $247 billion; as a percentage of sales, that clocks in at 17.6 percent. Worse yet, all these returns have a high environmental cost; returned inventory creates 9.5 billion pounds of landfill waste every year. Let’s face facts — the volume of online returns has gone past the point of manual management. It’s time to upgrade the system.
Radio-frequency identification (RFID) technology can give you a fast, reliable way to manage returns. Think of it — you could unlock the value of returned stock, limit your environmental impact, and save on reverse logistics. Keep reading to find out more!
Hassle-free returns?
For online-only retailers, returns are rarely 'hassle-free'. Without a rock-solid way to quickly and accurately process incoming returns, you're looking at a hefty backlog of stock and no clear way to identify it. And that's before you get into the quagmire of fraudulent returns.
According to a survey by the National Retail Federation, worn-then-returned ‘wardrobed’ items made up almost half (48 percent) of returns last year. Retailers also reported noticing an uptick in customers who felt comfortable ‘bracketing’ — ordering the same garment in multiple sizes, choosing the best fit, and returning the rest. Sure, you could try to limit customer behavior, but with the right system in place, there might be a better way…
Tagging garments with RFID can alleviate the challenges of the traditional returns process, allowing you to confidently identify and verify items. You can process returns in seconds with minimal people power and begin to implement a process that allows you to unlock the value of the returns through your own 'preloved' or 'seconds' marketplaces.
Read: Everything you need to know about RFID
Returns management: why the future is RFID
1. Ultimate supply chain management
Effortless supply chain management? It's an RFID inlay away, friend. Online-only retailers who RFID tag their garments at source enjoy a reliable chain of information for each and every item they sell. This is especially true for garments with a discreet embedded RFID label, which is harder to tamper with (unless you don't mind damage) and much harder to separate from the item.
2. Super-fast, accurate processing
Scan and sort your returns in the blink of an eye! One scan of a return's inlay gives you an accurate history for the item, including info like when/where it was made, when it was sold, and—once scanned—the moment it arrived back with you. This can dramatically cut queue times and give you a nice little boost in customer satisfaction levels, too.
3. Less manual labor needed
Let's be real — processing returns is miserable work. It's a lengthy process that takes staff away from more value-added tasks. Luckily, RFID can be scanned quickly, without a line of sight, so your returns are unbelievably quick and easy to process on arrival. The process can be automated, leaving your people free for tasks that need the human touch.
4. Real-time processing
Real-time processing is excellent in its own right, but if you're a retailer who connects returns to your online inventory, that item could be back on sale as a return on a second in an instant. No time wasted, no manual intervention needed, and maximum chance of securing a long-term sale. Heck. Yes.
Identifying your options
As if all this didn't sound too good to be true, RFID also offers multiple entry points depending on budget, processes, labeling, and end goals. The versatile technology can start with something as simple as hand-applying encoded stickers to selected garment hang tags (like the most returned, most expensive, or best sellers, etc.) all the way through to inlays embedded into your care labels at the source.
To ensure you get the most out of the technology, we recommend partnering with an RFID specialist who can design your rollout in tandem with a new returns/reselling process. The tech would inform the process and vice versa, giving you a holistic (super smart) project plan that considers every angle from the start.
Read: which RFID project type is best for you?
Because Checkpoint is a global, vertically integrated labeling partner, you have access to an expert team who can hook you up with all the tech and labeling, and get it implemented at source, complete with training, no matter where your manufacturer is. It’s the whole shebang.
Want to revamp your eCommerce returns process? Get in touch with our team and let them know what you’re thinking. We have decades of experience and have even designed our own RFID inlays to meet specific use cases, so you’re in good hands. Got a question about anything we’ve mentioned here? Reach out! We love it.
