SML Group has released its latest research which found that a third of retailers say that they are spending too much time manually processing returned items. The radio frequency identification and branding solutions company for brands and retailers surveyed 500 senior-level decision-makers from apparel retailers in the United States and the United Kingdom. They cite that 26 percent of retailers blame a lack of staff for processing returns as a main cause for this ongoing issue.
A previous report by WWD addressed inventory management issues and the importance of an omnichannel retail environment, as consumer behavior continues to change in a post-pandemic retail environment. This newest report looks at how retailers can improve return management through technology and advancing customer service.
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The rise in returns and finding impactful solutions to solve this problem has become an ongoing issue for retailers. In 2022, retailers claimed that 30 percent of items are returned. Forty-seven percent of returned items are sold at full price, 42 percent of returned items at a discounted price and 12 percent are not resold.
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Furthermore, the ongoing staff shortage problem has contributed to this returns problem. Thirty-eight percent of respondents want multiple options to deal with customers’ returns and 32 percent are looking to minimize the amount of time their company staff is spending manually processing individual returns.
“The findings highlight the growing issue of returns and retailers clearly recognize that changes need to be made,” said Dean Frew, chief technology officer and senior vice president of RFID Solutions at SML Group. “Item-level RFID can play a pivotal role in alleviating the slow returns process on an operational level and manually processing returns.”
In the last three years, retailers have had to shift their strategies drastically. Amid the pandemic, mall traffic was halted and they were on their way to complete elimination, with a rise of online shopping gaining popularity. Now more than ever, customers are opting to return to shopping in brick-and-mortar stores.
As previously reported, a lack of staff continues to be one of the primary issues impacting retailers currently and by direct correlation, customer service. Forty-two percent of retailers say that they don’t have enough staff on the shop floor and 30 percent say staff are spending too much time completing mundane tasks.
Ninety-three percent of respondents say that investing in technology is important to creating a seamless customer experience in-store. Frew believes that “by investing in item-level RFID technology, retailers can have instant visibility and access to reverse supply chains, enabling them to streamline back-end operations and send items back to the shop floor much quicker. It also significantly reduces time spent on manual inventory-related tasks enabling staff to aid customers and improve their experience. Investing in technology and processes that enable improved customer experience should be a top priority in an increasingly competitive landscape.”