32% retailers in US, UK struggle with returns processing: Report

27 Apr '23

1 min read

Pic: Shutterstock/metamorworks

Insights

Over a third of US and UK retailers spend too much time processing returns, with staff shortages being a key cause.
Returns have become a growing issue, with 42 per cent of returned items being sold at a discounted price and 12 per cent not resold at all.
Retailers must improve their returns processes to reduce costs and improve efficiency using technology.

Around 32 per cent of retailers in the US and UK state that they spend too much time manually processing returned items, with 26 per cent blaming a lack of staff for processing returns as the main cause. This has become a growing issue for retailers in recent years, with the rise of returns impacting revenue streams.

Forty-two per cent of returned items are sold at a discounted price, and 12 per cent aren’t even re-sold. With the current labour shortage exacerbating the problem, retailers must focus on delivering streamlined returns processes that reduce their own costs and improve overall efficiency, according to ‘Part 2: Returns Management and the Customer Experience’ of the State of Retail 2022/2023 report by SML RFID.

Specifically, 42 per cent of retailers reported not having enough staff on the shop floor, while 30 per cent agree that staff spends too much time completing mundane tasks. Additionally, 93 per cent of the retailers state that technology is important in facilitating a seamless customer experience in-store.

SML RFID’s report analysed responses from over 500 senior decision-makers in the apparel retail industry across the US and UK.

ALCHEMPro News Desk (NB)

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