Stop Shopping Around Master Your In-Store Returns With Blue Yonder

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Stop Shopping Around—Master Your In-Store Returns With Blue Yonder

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We’ve all experienced the real-world drawbacks of in-store product returns. With return rates doubling since 2019—and returned merchandise totaling $890 billion in 2024—we’ve all waited impatiently behind someone who’s making a lot of returns at the retail store.

The only two people more stressed than those waiting in line? The retail employee who’s sorting through the growing pile of products, and the manager who’s been called from her lunch break to negotiate with the shopper over stains, 30-day deadlines and merchandise credits.

The retailer is losing out too, as margins are already shrinking on that big pile of returned merchandise. Some of it might be resellable, some of it might not be. The employees don’t seem sure. As you continue to watch the scene slowly unfold, you think to yourself, “What if there were a better way?”
 

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Digitalizing in-store returns: a win-win-win scenario

There is a better way. Advanced returns management software is purpose-built to create benefits for every stakeholder involved—the retail brand, the employee team and the shopper who’s returning merchandise. Digitalizing the in-store returns process to make it fast and frictionless represents a win-win-win. And, as a bonus, it also creates improved service, less cluttered stores and a better shopping experience for every other in-person consumer.

How does returns digitalization work? Instead of being guided by manual processes, paperwork, employee judgment, personal negotiation skills and specialized decision-makers—who might be on their lunch break—digitalized returns management is based on technology, data, intelligence and well-defined processes. The in-store returns process is democratized as digitalization gives every employee the data and skillsets they need to master even the most complex or biggest batch of returns.

By making returns management decisions based on data, precise process steps and well-defined rules, retailers and their employees can:

  • Get popular merchandise back on the shelf quickly, at full price. When store employees scan returned merchandise, modern digital solutions provide a wealth of information, including whether the product is sold online or in stores, its current price and the precise location where it should be restocked in the store. Aging inventory and markdowns are minimized as products quickly make it back to the store shelf. Employee satisfaction increases as associates have a clear path to reshelve merchandise.
  • Send each item to its correct destination in the inventory network. One of the biggest challenges of omni-channel returns is that items returned to the store might not actually belong in the store. Lacking data and visibility, confused employees might mark an online product down dramatically and shelve it in a department that seems to make the most sense, instead of sending back to an e-commerce warehouse—where it might have sold at full price. A Kansas City Chiefs football jersey might not sell successfully in Dallas, so digital tools send it to another store or a regional warehouse. Digitalization maximizes margins by giving employees clear, intelligent instructions on returns disposition.
  • Recognize and address returns fraud. It’s not surprising that 54% of retail executives say fraudulent returns are their greatest challenge. In 2023, 13% of returns were fraudulent, accounting for a loss of $101 billion. For employees who aren’t well versed in the signs of fraud—such as fake receipts, missing tags or obviously worn clothing—digitalization provides discipline and structure. Enabled by artificial intelligence (AI), data science and advanced analytics, returns management software recognizes signs of fraud, even if retail employees don’t. Digital solutions use customer history, behavior and returns frequency data to detect suspicious activities, then personalize the returns experience based on those insights. Advanced technology empowers store associates to recognize and halt fraudulent returns transactions, reducing the incidence of loss.
  • Automate the end-to-end returns process, for accuracy and speed. Retailers can maximize the contribution of digital solutions by having consumers initiate the return at home, on their own device, before actually visiting the store. At the store counter, a simple scan reveals the specific item, the customer details and the return reason. This informed perspective increases the speed and ease of performing manual returns in a busy retail store. Consumers are refunded faster, items are dispositioned faster, the retail queue moves faster. Employees can effectively focus on serving all shoppers, versus one.
     

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Buy. Return in-store. Buy something else.

We haven’t even discussed one of the biggest benefits of streamlining and accelerating the in-store returns process via digitalization. Consumers who are able to accomplish their return quickly and easily—as well as receive a refund immediately—are much more likely to browse the store and purchase something else.

Nearly three-quarters (70% percent) of shoppers report that they purchase more from a specific retail brand after having a positive returns experience there. While e-commerce is growing, 45% of consumers say they primarily shop in physical stores. Getting consumers in the door, even if they’re returning a product, is a huge opportunity to drive store traffic and additional sales.

It’s an unfortunate fact that, driven by largely manual processes, today the cost of returns processing is around 30% of the product’s original price. Optimizing the in-store returns process not only drives that percentage down via improved speed and efficiency—but it also helps retailers recoup some of that cost with a brand new sale.

What’s in store for retailers? Improved results, with Blue Yonder.

That frustrating, tedious and highly manual returns process we described at the beginning of this blog post? Smart retailers are already making that scenario a thing of the past. Blue Yonder’s returns management solutions are helping them digitalize and optimize the end-to-end returns process, including in-store returns operations.

Blue Yonder knows retail. In fact, every day the world’s leading retail brands run on our software. We understand the in-store returns process at a deep level—and we’ve improved and streamlined it with advanced intelligence, data science, real-time visibility and connectivity, and process standardization and automation. As the end-to-end returns journey becomes faster and more accurate, every stakeholder achieves a better and more satisfying outcome.

Easy for store associates to learn and apply, Blue Yonder returns management software is a proven solution to the growing problem of merchandise returns. Stop browsing and start reaping the benefits. Reach out to Blue Yonder to learn more.