Why Reverse Logistics, Return Policies, and Return Management Solutions Matter More Than Ever
Why Ecommerce Returns and Poor Return Management Are Draining Profit
Returns are no longer just a customer service issue; they are a bottom-line killer.
In ecommerce, the return rate reached approximately 20.4% in 2024, up from 17.6% in 2023 and 16.5% in 2022 (Shopify). For sectors like apparel and footwear, return rates can hit as high as 30%.
Every return chips away at your margin through processing costs, inventory write-offs, lost revenue, and customer service overhead. Retailers face £10 – £20 in processing costs per return, which includes logistics, inspection, repackaging, and restocking. In the UK alone, the total cost of online returns in 2024 is predicted to exceed £27 billion (Stamped With Love).
“22% of online orders are cancelled due to poor inventory visibility”, and “25% of customers report delays with returns and pickups” – (Forrester)
Despite these staggering numbers, many ecommerce businesses lack visibility into returns trends, root causes, and how returns impact inventory turnover and margins.
The Business Impact of Ecommerce Returns and Return Management on Inventory, Profitability, and Supply Chain Performance
Returns disrupt more than just refund workflows. Without an integrated returns management system, ecommerce brands often suffer from:
- Inaccurate stock levels
- Missed restocking opportunities
- Poor demand forecasting
- Slower cash recovery from unsold items
Returns also distort inventory tracking and create data gaps in both operations and finance. Over time, these gaps affect customer satisfaction, reorder cycles, and warehouse efficiency. NetSuite addresses this by providing ecommerce teams with a live, connected view of how returns impact the entire order lifecycle, from product return to final resolution in inventory and finance.
How NetSuite Helps You Handle Ecommerce Returns, Reduce Returns, and Improve the Return Process
NetSuite provides ecommerce businesses with complete control over returns, from the initial return request to the final restock or write-off. It automates return authorisation, updates stock records in real time, and integrates the process into your finance and CRM systems.
NetSuite automates the entire workflow:
- Initiate and track return authorisations.
- Trigger reverse logistics workflows.
- Restock inventory automatically once returns are approved
Sync the refund and credit processes to your general ledger.
The returns process becomes structured, accountable, and trackable with performance reporting available through real-time dashboards. Because NetSuite is a cloud-based inventory management solution, ecommerce teams gain visibility across locations and functions, from customer service to warehousing.
How Mail Marketing Used NetSuite to Improve the Return Process, Reduce Returns, and Strengthen the Supply Chain
For Mail Marketing, an industry leader in UK fulfilment and response handling, managing complex logistics workflows was a significant challenge. Disconnected systems created inefficiencies, and handling returns and shipments required hours of manual effort each day.
Cofficient implemented NetSuite, including a customised Parcelforce Integration Bundle, to fully automate the shipping and return fulfilment process. The result led to substantial time savings, better visibility, and improved customer satisfaction.
“The saving has been substantial hours of manpower per day and more importantly, has helped us exceed customers’ expectations.” – Chris Kinnaird, Managing Director, Mail Marketing
By consolidating multiple systems into NetSuite and customising modules to fit their unique processes, Cofficient helped Mail Marketing transition from fragmented logistics to a single, connected, and scalable platform, supporting returns, inventory tracking, order visibility, and profitability all in one place.
Common Signs You Need to Improve the Return Process, Manage Returns Better, and Cut the Cost of Returns
Is your returns process costing you more than it should? You might be stuck in manual spreadsheets, with inventory data that is always a step behind. It could take days to restock returned items, leading to missed sales and over-ordering. If refunds are delayed and customer complaints are rising, or if you cannot easily track return rates by product or campaign, then your returns management software is likely holding your growth back and costing you every day.
Final Word: Why the Cost of Returns, Return Experience, and Ecommerce Sales Are Too Big to Ignore
Ecommerce returns are expensive. But they are also fixable.
With NetSuite, you gain more than just inventory software; you get a connected returns management system that enhances visibility, accuracy, and the overall customer experience. NetSuite also offers custom reporting, automated workflows, and API capabilities for more advanced return handling and integration with carriers or 3PLs.
At Cofficient, we implement NetSuite to match the real needs of fast-moving ecommerce brands. If you want to reduce your return rate, gain tighter inventory control, and recover revenue more quickly, we can help.
