Returns Management Efficiency

Returns are still treated like an afterthought at many fast growing apparel brands. That is getting expensive. In 2026, retail returns are projected to approach $900B, with roughly 17–20% of online orders coming back, compared to 8–10% in-store. At the same time, consumers are becoming more value-conscious, and online continues to grow. That makes one thing clear: Returns can no longer sit outside the inventory strategy. The faster a brand turns returned units back into sellable inventory, the more it protects working capital, margin and availability. But in many apparel businesses, returned units still: - sit in a separate queue - get processed too late - stay invisible in weekly demand planning - miss the full-price resale window A few practical shifts worth implementing: 1. Restock high-demand products fast If a core size comes back, every extra day in processing is a missed sell-through opportunity. 2. Create a 3-way routing rule Every unit should quickly be classified as: restock, resale or unsellable. 3. Track time-to-resell Return rate tells you volume. Time-to-resell tells you if you are protecting margin. 4. Include returns in weekly inventory decisions Availability, allocation, and markdown reviews should include returns, not just warehouse and store stock.

What does "𝘼𝙜𝙚𝙣𝙩𝙞𝙘 𝘼𝙄" really look like in the enterprise today? 🤯 Spoiler alert: It’s not synthetic AI employees taking over entire departments (yet). Instead, it’s smart, focused workflows designed to handle specific tasks efficiently and accurately. Here’s a real-world example from one of our retail clients: they’ve automated the process of helping customers who’ve lost their return labels. 𝗧𝗵𝗲 𝗼𝗹𝗱 𝗽𝗿𝗼𝗰𝗲𝘀𝘀: 1️⃣ A customer emails support saying they can’t find their return label. 2️⃣ A customer service agent reads the email in Zendesk, identifies the issue, and checks the CRM for details. 3️⃣ Most of the time, the problem isn’t the label—it’s something simple like a typo in the zip code or missing phone number. 4️⃣ The employee fixes the issue, selects the correct email template, drafts a response in the right tone, and sends it to the customer. 5️⃣ Finally, they resolve the ticket in Zendesk. It’s repetitive, manual, and time-consuming - requiring judgment calls and multiple tools. 💡 𝗡𝗼𝘄, 𝘁𝗵𝗶𝘀 𝗲𝗻𝘁𝗶𝗿𝗲 𝘄𝗼𝗿𝗸𝗳𝗹𝗼𝘄 𝗶𝘀 𝗮𝘂𝘁𝗼𝗺𝗮𝘁𝗲𝗱: 1️⃣ Detect the Issue Automatically When a customer emails support, AI scans the ticket to see if it’s about a missing return label. If the model is unsure, it’s routed to a human for validation. 2️⃣ Check Eligibility Instantly The agent pulls order details from Salesforce—validates if: • The return window is still open (within 30 days) • Customer info (like phone number or postal code) is correct 3️⃣ Fixes Common Errors AI corrects simple mistakes in Salesforce and then sends it to the another agent specialized in customer comms. 4️⃣ Generate a Personalized Response A text-generation agent drafts a tailored email in the brand’s voice, ensuring it’s clear, helpful, and compliant. 5️⃣ Update Systems & Close the Loop The AI agent updates the customer info in Salesforce, the email is sent via Zendesk, and the ticket is marked as resolved. This is “𝘼𝙜𝙚𝙣𝙩𝙞𝙘 𝘼𝙄” in action: Logic (e.g., classifying what the email was about / checking if an order was delivered within 30 days) + text generation agents (like an email generator trained in the brand’s voice, tone, and compliance rules) + seamless integrations with enterprise systems (e.g., Zendesk, Salesforce) working together to solve a problem from start to finish. What's exciting is once enterprises build one workflow like this, they can quickly replicate and scale—reusing components and tackling more complex processes. And this is just the beginning. As these workflows grow, they lay the foundation for 𝗼𝗿𝗰𝗵𝗲𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗮𝗴𝗲𝗻𝘁𝘀 which are systems capable of coordinating across workflows to tackle enterprise-wide challenges. 🚀 The majority of 2025 will still be dominated by these highly targeted workflows. But every workflow built today is compounding toward something much bigger.

One click return. Thirty percent chance it never sees another customer. That is the quiet punchline of post holiday ecommerce. A parcel goes out. Another parcel comes back. Margins disappear somewhere between the warehouse scan and the landfill gate. Here is the part nobody likes to say out loud. Returns are no longer a customer service topic. They are a structural cost problem with an environmental side effect that is getting expensive to ignore. A quick reality check before scrolling on. 📦 Around one in six online orders now comes back after the holidays 🗑️ Roughly a third of returned items never get resold because processing costs beat resale value 💸 A single return can eat up to sixty percent of an item’s cost once labor and shipping are counted Pause for a second. Free returns were sold as a growth lever. They quietly became a margin tax. A sideways observation that keeps popping up across marketplaces. The same sellers who obsess over CPCs often have no idea what their average return actually costs per SKU. Short story from the floor. An apparel item gets returned in January. The size is fine. The product is fine. The season is not. By the time it clears inspection, the discount hammer is already out. That is not bad luck. That is system design. Here is where the operator lens kicks in. 🧠 Fix product pages like revenue depends on it because it does 📏 Kill size guesswork with better charts and real photos 🔁 Push exchanges and instant swaps instead of refunds 🏬 Local drop offs beat long haul shipping every single time 🧾 Price returns into the model instead of pretending they are free Single sentence truth bomb. If the return is free, the margin is not. Zooming out. Marketplaces are watching closely. Expect tighter return rules, smarter fraud filters, and more nudges toward paid or conditional returns. Not because platforms got mean. Because the math stopped working. Final signal. The next advantage will not come from faster shipping. It will come from fewer boxes coming back. #ecommerce #marketplaces #returns #logistics #dtc

🚀 End-to-End Returns Management in SAP S/4HANA SD. Returns Management is a critical component of the Order-to-Cash (O2C) cycle. While organizations focus heavily on sales growth, an inefficient returns process can impact customer satisfaction, inventory accuracy, revenue recognition, and profitability. 📌 Business Scenario A customer purchases 100 laptops. After delivery, 10 units are damaged, 5 have configuration issues, and 3 are shipped incorrectly. The customer requests a return. The business must decide whether to refund, replace, repair, or scrap the returned products while maintaining inventory and financial visibility. 🔄 Returns Process Flow Returns Order (RE) → Return Delivery (LR) → Goods Receipt → Quality Inspection → Credit Memo / Replacement Order 📍 Key Process Steps ✔ Return Request Creation (VA01) Create a Returns Order (RE) with reference to the original sales or billing document to maintain complete document flow. ✔ Return Delivery (VL01N) The warehouse is informed that goods are expected back from the customer. ✔ Goods Receipt (VL02N) Inventory moves from Customer → Company Stock, unlike the standard sales process. ✔ Quality Inspection Returned products can be restocked, repaired, scrapped, or returned to the vendor based on inspection results. ✔ Credit Memo Processing A Credit Memo Request (CR) is created, followed by Credit Memo creation (VF01) to process customer refunds. 📍 Key Configuration Areas • VOV8 – Sales Document Type • VOV4 – Item Category Determination (REN, RENN) • VOV6 – Schedule Line Category   💡 Returns Management is much more than creating a return order. It integrates SAP SD, MM, QM, FI, and EWM to ensure seamless handling of returned products. A well-designed returns process helps organizations improve customer retention, maintain inventory accuracy, ensure financial transparency, and drive continuous process improvement. #SAPSD #SAPS4HANA #ReturnsManagement #OrderToCash #SAPConsultant #SupplyChain #InventoryManagement

Last month our team of 5 did the work of 50 people. While taking every weekend off. The secret? We replaced the most expensive job with code: Let me show you exactly how this works. Three features transformed our support from "answers questions" to "handles entire workflows": 1. Guidance: When someone requests a feature, our AI: - Thanks them properly - Logs feedback automatically - Directs to feedback portal - Updates them on progress - Maintains perfect brand voice 2. Processes: Take a refund requests. Our AI: - Checks account status - Verifies eligibility - Processes through Stripe - Sends confirmation - Logs everything instantly 3. Actions: This is the real power. AI can: - Pull CRM data - Process payments - Update records - Trigger notifications - Make API calls Real workflow example: Customer: "Can I get a refund?" AI: - Verifies account instantly - Checks eligibility - If eligible: processes immediately - If not: explains why + alternatives - Everything logged in seconds What used to take 30 minutes Now happens automatically. Start with feature requests. It's simple but shows the power. Then you'll want to automate everything. Because your support team should solve problems. Not copy-paste responses at 3AM. What would you automate first? Interested in seeing how Helply can do this for you? Shoot me a DM

Most brands don't have a good returns process. The right technology makes it seamless. I have been in countless warehouses where the returned items are received at the furthest dock. Then put in the back of the building...in a pile...sorted through and processed over several days. Even to my surprise we did a project in the past where the customer said, “I don’t want the returns near the front of the building. It’s dirty and a mess.” (that statement started my mission to improve returns within the warehouse) Now with a combination of robotics and the right software, returns can be handled efficiently. It can become an asset to the fulfillment operation and the brand. 💰I did a study for an apparel brand which identified they could reduce inventory on hand by 10% resulting in a $5MM savings. They averaged 48 hours for processing returns. A shelf to person system like the one shown in the video incorporates all parts of the fulfillment operation. Inbound items are processed then put directly into the pickable location. The item is not touched again until an order is placed for it. The right software can work wonders. If a returned package enters the building that is currently out of stock or low on stock, it is given a high priority and routed by system directly to processing. A worker validates and processes the return then puts it into the pickable location. This puts the product back up on the storefront quickly for re-ordering. In stock items mean more sales for the brand and happier customers. Build a fulfillment system that works for every part of the operation, not just a happy path. Leave a comment or repost if you found this useful! ♻️ Q: Have you ever scrambled to find a product in a pile of returns?

I walked into ZARA Oxford Street at the weekend to return a few things I'd ordered on the app. And I walked out 2 minutes later, return done, push notification confirmation already on my phone. Here's what happened: Zara now has a self-service returns station. A big touchscreen kiosk above a counter. You scan your QR code from the app, place your items on the counter, and the screen picks them up instantly via RFID. Every item appears with its photo, size, and price. You confirm, pack the items into a paper parcel they provide, the kiosk prints a label, you stick it on, drop it in a built-in post box, and you're done. No queue. No staff interaction. No "we'll email you in 5-7 business days." I got a push notification confirmation before I'd even left the store. This is what good omnichannel looks like in practice. Four systems working together in one 2-minute experience: the app identifies you, the in-store kiosk handles the touchpoint, RFID does the item recognition, and push closes the loop. The customer barely has to think. Returns are still the most painful part of online shopping for most brands. Zara just made theirs faster than buying a coffee. That matters because easy returns drive repurchase. If I know returning something is painless, I'm more likely to buy. Especially in fashion, where sizing is always a gamble. Have you seen anything like this at other retailers? I'm always collecting examples of omnichannel done well (or badly). Drop yours in the comments.

💡Advance Return Management (ARM) in SAP S/4HANA is a sophisticated, integrated solution for handling customer, supplier, and internal returns, enhancing transparency, automation, and efficiency over classic ECC processes . ✅Key Features of Advance Return Management End-to-End Process Integration: ARM supports the full lifecycle of returns—from return order creation, goods receipt (GR), quality inspection, to credit or replacement processing. This covers customer returns, supplier returns, and even stock transfers . 🚨Flexible Refund and Follow-up Activities: Businesses can choose between issuing a credit memo, replacing goods, sending items for in-house repair, scrapping, or reselling products post-inspection . ✅Inspection Management: Allows automatic or manual quality assessment of returned goods. Based on the inspection result, ARM can route items to unrestricted stock, scrap, vendor return, or back to customer . ✔️Logistical Transparency: The “Return Overview” provides a status dashboard of all steps (order, delivery, inspection, refund) within the SAP Fiori interface for improved process tracking and decision-making . ✔️Automatic Document Creation: ARM auto-generates subsequent documents like return deliveries, credit memo requests, and purchase orders with reference to the original returns process for seamless process flow . ✔️Serial Number and BOM Support: Advanced support for tracking by serial numbers and handling returns of Bill of Materials (BOM) is available . 🚨Typical ARM Process Steps Create Return Order: Sales or purchasing document for registering the return, indicating the return reason, material, quantity, refund type, and follow-up action . ✅Goods Receipt & Inspection: Items received are optionally inspected for quality. Inspection splits can determine different follow-up activities for items in the same return . ✅Logistics & Accounting Follow-Up: Based on inspection outcome, select logistics follow-up activities—move to stock, send back to vendor, repair, scrap, or re-sell; then determine commercial follow-up (credit memo or replacement) . ✅Settlement: Automatic creation of credit memo or replacement order to settle the return . ✅Business Improvements Efficiency: Multiple returns scenarios (customer, supplier, intercompany) handled in one unified workflow . ✅Transparency: Return Overview centralizes process visibility and simplifies monitoring for internal teams . ✅Customer Service: Fast refund, replacement, and real-time status updates improve end-user satisfaction . ✅Best Practices and Considerations Utilize the ARM Fiori apps for process monitoring and user-friendly execution . ✔️Configure proper inspection keys and follow-up strategies to automate subsequent actions based on business rules . ✔️Consider cross-module integration, especially with Quality Management (QM) and Materials Management (MM), for full returns processing .

Retail is at a pivotal moment: returns are no longer a backroom headache. They’re a front-line retail strategy. Deborah Dull and I hosted a terrific conversation on Supply Chain Now that featured long-time leaders from the retail world that unpacked how reverse logistics is reshaping margins, merchandising, and customer loyalty. Scot Case framed the shift in unmistakably commercial terms: “Sustainability is a nice to have, but you absolutely have to focus on the financial impacts.” For retailers navigating tighter margins, tariff pressures, and elevated e-commerce returns, reverse logistics is becoming a lever to recover value, protect profitability, and meet consumer expectations - - all at once. Tony Sciarrotta addressed the long-standing stigma around the function: “Nobody wants to talk about returns.” Yet in today’s omnichannel environment, returns are inseparable from the customer experience. With most returned products still fully functional, retailers have an opportunity to design smarter pathways (think resale, refurbishment, recommerce, etc) that strengthen brand trust while reducing waste. Deborah highlighted the operational reality inside retail organizations, calling reverse “the supply chain tucked in the corner.” Small teams are managing enormous complexity across stores, distribution centers, digital channels, and secondary markets. Meanwhile, younger consumers are increasingly checking resale value before buying, signaling that circularity is influencing purchase decisions at the shelf and online cart alike. The retail takeaway: forward and reverse supply chains can no longer operate separately. By elevating returns strategy, retailers can turn a traditional cost center into a competitive differentiator, driving revenue recovery, operational efficiency, and stronger customer relationships. Beyond this great conversation (on demand, see link below), and on a related note, I’m intrigued with the $112B++ shrinkage problem that retailers are faced with. Just like with returns management & reverse logistics in the retail industry, legacy tools won’t cut the mustard when it comes to loss prevention and protecting the bottom line. T-Mobile For Business is doing some intriguing things to help retailers of all sizes mitigate the shrinkage risk, while optimizing their success. AI-enabled cameras, automated insights & alerts, seamless device connectivity - - all that and more. To learn more: check out what T-Mobile for Business is doing in retail: https://lnkd.in/eXxFmpFE #retail #supplychain T-Mobile for Business Partner

Last year I had a call with the VP of ecommerce of a $300M+ retail company who was convinced their 32% return rate was "just the cost of doing business" When I dug into their data I discovered that almost half of post-purchase revenue loss is preventable. This happens all the time, retailers are pouring their heart and budget into hitting sales targets, only to watch a third of that revenue disappear due to inefficiencies and refunds. It's demoralizing to be a retailer these days. It doesn't have to be this way! Here's the playbook we used to help that company recover over $6.8M in just 4 months: Most retailers focus on the wrong metrics, for example they celebrate $10M in sales while silently losing $3.2M to returns, and another $1M to operational inefficiency, plus $800K to return fraud and abuse. Quick observations: Your "best customers" are killing you! 37% of "VIP shoppers" are serial returners, they look great in your CRM but they're negative margin customers. We found one customer returning over $14K → this is totally preventable! This is our framework that we developed after working with hundreds of enterprise retailers in the past 5 years: Prevent returns Enable size/style swaps and allow for uneven exchanges (more expensive or cheaper options) Store credit options instead of refund Relevant product recommendations for exchange and upsell Analyze the return reasons by product - this can save you a lot of products from being returned! Results: Over 60% reduction in refunds b) Prevent fraud and abuse Fraud rules to prevent return abuse Automate policy enforcement and verification of product quality before the product is sent back Product inspection workflows at the warehouse level Results: the highest we seen last year for a customer was over 90% c) Streamline Operations Setup rules for returns routing to the closest warehouse or outlet stores Minimize clicks and enable a scan, scan, refund workflow Centralize all returns data and actions into one system, to prevent system switching Results: 42% faster processing Returns are not a cost of doing business. They're a goldmine of hidden opportunities. But here's the truth: Most retailers will read this and do nothing. They'll keep losing millions because "that's just ecommerce." The smart ones will see this as the competitive advantage it is. What side do you want to be on? P.S. If you're a retail executive seeing 20%+ return rates, DM me. I'll share our full framework as it’s way more detailed.