Returns cost more than you think.
Time, money, space, customer satisfaction – it all adds up. And when you’re selling across multiple channels, the complexity (and cost) multiplies.
UK retailers are expected to lose £27 billion to online returns in 2024 (Retail Economics / ONS, 2024)….that’s after refunds, wasted stock, delays and admin.
Each channel you sell on adds a new layer…. different platforms, expectations, return policies, workflows. Without the right systems in place, returns quickly become disorganised, costly and hard to manage.
Let’s break it down.
First – how to stop returns in the first place.
Then – how to handle the ones you can’t avoid.
Stop Returns Before They Start
- Bad product info leads to unhappy customers. Multi-Channel retailers see around a 15% return rate due to mismatched expectations (IMRG, 2019). A proper Product Information Management (PIM) system helps fix that – with accurate descriptions, images and sizing across every channel.
- Barcode scanning helps avoid pick and pack mistakes. It improves accuracy to over 99% (IMRG, 2023).
- Real-time inventory updates prevent overselling or wrong shipments across channels.
- Track the reason behind each return to fix problems before they repeat.
But Returns Will Happen. Handle Them Right.
You can’t avoid them all (damaged items, delays, customers changing their minds). What matters is how you deal with them across every channel you sell on.
1. Put All Returns in One Place
It doesn’t matter where the order came from – your website, a marketplace or a physical store… the return should follow the same process.
Centralise it. One system, one view, one flow.
Retailers who centralise returns save up to 20% in processing costs (McKinsey, 2021).
2. Use the Data
Returns give you insight. Was it the wrong size for the customer? Was it damaged? Did it not match the listing?
Look at the reasons customers are giving across every channel. Spot patterns. Fix the problems at the source.
Product Information Management (PIM) plays a big role here – poor descriptions, missing specs or confusing sizing details all increase the chance of returns.
Retailers using return data to fix issues see their return rates drop (McKinsey, 2021).
3. Automate Stock Updates
Returned items should update your inventory across all channels automatically in real-time.
No delays, no manual work and no repeated tasks.
Retailers using automation see 99%+ inventory accuracy (IMRG, 2023).
4. Make Returns Easy for Your Team
Returns take up time. Your system should handle the admin with automation…. faster, more accurate and no human error.
This can reduce warehouse labour costs by up to 30% (McKinsey, 2021).
5. Treat Returns Like Stock
Returns are part of your inventory – not an afterthought. If they’re not tracked properly, your inventory becomes inaccurate and you risk making poor buying and fulfilment decisions.
Retailers who track returns properly maintain 95-99% inventory accuracy across locations (IMRG, 2023).
Get on Top of Returns
Returns aren’t going away… but they don’t have to take over your business.
Cut the returns you can. Handle the rest properly.
… And make sure every return is tracked like any other stock – so your inventory stays accurate, updates in real-time and there’s one clear view across all channels and locations.
Returns, Sorted – With Cloud ERP
That’s exactly what Stok.ly Cloud ERP does.
One system that keeps everything connected – your sales channels, your warehouses, your returns.
One platform, one real-time view across every channel and location.
No more stock errors, duplicate systems or chasing lost items.
Just clean, connected returns… the way it should be.
Click here for more information about Stok.ly Cloud ERP
Call us on 01432 804333
Author: Iain Coplans CEO Stok.ly