Optimized Returns Positioning

In the modern retail landscape, optimizing returns management isn't just a strategy—it's the cornerstone to thriving in an ever-changing consumer market.

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Returns Positioning Cover Image

Returns Positioning

In today's world where convenience is paramount, customers are shopping more flexibly across multiple channels. With this flexibility, however, comes the complex challenge of managing returns. The online shopping boom has turned returns into a labyrinth, often leading to misplaced inventory which creates lost sales and diminished profits.

As consumers, lured by the ease of browsing, selecting, and purchasing across multiple platforms, increasingly send back items that don't meet their expectations, retailers find themselves grappling with more than just the volume. They confront dwindling profits, excess inventory, and a logistical web that can be daunting to navigate. It's clear that the rules of returns management have changed, and the retail world must adapt swiftly.

Through smart algorithms and data-driven insights, AI not only streamlines the returns process but also maximizes profitability by optimizing the path of each returned item. By predicting future return patterns, retailers can maximize full-price sales by intelligently reallocating merchandise. AI is poised to revolutionize returns positioning, ensuring that retailers are equipped for the demands of the modern consumer.

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Why use Returns Positioning?

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Today's challenges that affect profitability

  • Omni-Channel Complexities: Merging online and offline returns into a seamless process.
  • Increased Volume: Handling the sheer number of returns due to online shopping patterns.
  • Mismanagement: Traditional approaches inadvertently mishandle merchandise, incurring unnecessary liquidations.
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Outdated traditional approaches

  • Simplistic Rules Aren't Enough: With the consumer deciding where to return the product, simple rules aren't adequate for inventory placement.
  • Misallocated Goods: Goods often end up in the wrong place, leading to lost sales and excess inventory at the end of the season.
  • Lost Opportunities: Delayed reintroduction of goods to the sales floor can lead to markdowns and, ultimately, liquidations.

AI makes returns more efficient and profitable

  • Smart Rerouting: AI determines the optimal position for each returned item in real time.
  • Profit Maximization: Inventory is placed where it has the highest probability to sell with the lowest routing cost.
  • Accurate Forecasting: Predict future returns with unparalleled precision.
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Benefits that go beyond problem-solving

  • Increased sales by 25-50%: Quicker reintroduction of returned items to the sales floor.
  • Increased profitability: Sending items to where they have the highest likelihood of resale increases profitability.
  • Decrease liquidations by 2-5%: Automatically positioning inventory correctly decreases on-hand units at end of season.

Future-proof returns strategy

  • Swift Implementation: Witness transformative results in as little as 90 days.
  • Granular Insights: Deep, actionable intelligence from vast data points.
  • Stay Ahead: Equip your business for the challenges and prospects of the omni-channel era.
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Key Benefits

Create a Seamless Integration Between Online and Offline Processes
Predicting the Perfect Discounts and Optimal Paths for Returned Products
Accurate Future Forecasting for Proactive Planning and Efficient Resource Allocation
Quicker Reintroduction of Items to the Sales Floor Minimizes Markdowns or Liquidations
Strategically Redirect Returned Items to Locations with the Highest Resale Probability
Swift Implementation Ensures Retailers Are Prepared for Evolving Omni-Channel Demands
Reduced Costs and Time in Transit By Minimizing Touchpoints
Actionable Intelligence Empowers Retailers to Remain Responsive to Market Changes

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