This article examines the key challenges of omnichannel returns, explores the technology gaps contributing to these issues, and outlines how a purpose-built solution can transform returns from a logistical burden into a strategic advantage.
The Omnichannel Returns Disconnect:
As Natalie Walkley, host of Optoro’s Returnology podcast, highlights, “Shoppers have higher lifetime value [and] usually have larger cart sizes or average order value” when they engage across multiple channels. However, the seamless experience customers crave often breaks down when it comes to returns.
The seamless experience customers crave often breaks down when it comes to returns.
One of the biggest hurdles is the lack of integration between online and in-store operations. Thomas Coleman, Senior Director of Product at Optoro, explains that “the cross-channel nature of omnichannel makes it a challenge just in its own right.” This disconnect leads to scenarios where store associates struggle to process returns of online purchases efficiently. They may not have access to the necessary information or tools to determine the optimal course of action for the returned item.
Technology Gaps Amplify Challenges:
Many retailers rely on legacy systems, such as traditional point-of-sale (POS) systems, to manage store returns. However, these systems are often “sufficient to process that refund for a shopper, but it’s not always leaving that shopper with the best experience or leaving the associate with what they really need to make a great decision about where that item should go after that shopper walks away,” says Mary Bibbey, Associate Product Manager at Optoro. This reliance on inadequate technology further complicates the returns process and hinders retailers’ ability to optimize inventory.
Missed Opportunities and Wasted Potential:
Failing to address the challenges of omnichannel returns can lead to:
- Negative Customer Experiences: Lengthy wait times, confusing procedures, and inconsistent policies can frustrate shoppers and erode brand loyalty.
- Lost Sales: Inefficient processing and suboptimal inventory decisions can result in missed opportunities to resell returned items at full price.
- Increased Costs: Manual processes, unnecessary shipping, and excessive markdowns contribute to higher operating costs and reduced profitability.
- Environmental Impact: Sending returned items to landfills that could be resold or repurposed has a significant environmental footprint.
Transforming Omnichannel Returns into a Competitive Edge:
A purpose-built omnichannel returns solution, such as Optoro Stores, can empower retailers to turn these challenges into opportunities. By providing a comprehensive platform that integrates with existing systems and leverages data-driven insights, retailers can:
Streamline the Return Experience
Features such as QR code-based drop-off and mobile-first interactions can create a frictionless and convenient return experience for shoppers. As Thomas Coleman points out, “There’s going to be this push for consumers to have a better returns experience and retailers have to respond by making that a reality for them to retain their loyalty.”
Empower Store Associates
Providing associates with intuitive tools, real-time inventory visibility, and intelligent dispositioning guidance enables them to make informed decisions about returned items. This ensures consistent handling, reduces errors, and improves operational efficiency.
Optimize Inventory Allocation
By leveraging data to determine the most profitable destination for each returned item, retailers can maximize recovery value and minimize markdowns and liquidations.
Gain Data-Driven Insights
Capturing detailed information about returns provides valuable data that can inform inventory planning, merchandising strategies, and even product design. By understanding return trends, retailers can identify potential quality issues, adjust stock levels, and make data-backed decisions to improve operations.
Embracing a Holistic Approach to Omnichannel Returns:
Successfully navigating the complexities of omnichannel returns requires a holistic approach. Retailers must invest in technology that seamlessly integrates online and offline channels, empowers associates, and leverages data to drive intelligent decisions. By doing so, they can not only overcome the challenges of returns but also turn them into a source of competitive advantage and profitable growth.