The Urgent Need for an Omnichannel Store Returns Solution

Employee and customer struggling with in-store return

The retail landscape has undergone a dramatic transformation. Consumers, accustomed to seamless experiences in their digital lives, now demand the same level of fluidity in their shopping journeys. This expectation extends beyond the buy button to encompass a critical touchpoint: returns. 

The ability to return products purchased online to a physical store, commonly referred to as BORIS (Buy Online, Return In-Store), is a prime example of this omnichannel expectation. Data from the National Retail Federation (NRF) reveals that nearly half of all store returns are BORIS, underscoring the growing need for robust omnichannel store returns solutions.

Failing to meet these heightened expectations can be costly. High return rates directly impact profitability, while negative store return experiences can erode customer satisfaction and damage brand reputation. A study by Aberdeen Group found that businesses with robust omnichannel strategies experience a 9.5% year-over-year increase in annual revenue, compared to just 3.4% growth for those lacking such strategies. Yet, most omnichannel strategies heavily focus on outbound fulfillment and forsake experiences beyond the buy button like omnichannel and store returns.

This stark difference underscores the importance of seamless omnichannel returns in driving both customer loyalty and business growth.

Building a Winning Omnichannel Returns Strategy

A winning omnichannel returns strategy hinges on four core pillars: 

  1. An omni-minded return policy
  2. Customer-centric returns experience
  3. Empowered store and warehouse associates
  4. An operational framework that maximizes financial recovery and profitability

In other words, managing store returns effectively is about people, processes, and technology.

1. “Omni” Policy Essentials: Clarity, Consistency, and Flexibility

At the heart of any successful returns strategy lies a clear, consistent, and flexible policy. This policy should consider all channels – online, in-store, and marketplaces – to ensure customers enjoy a consistent experience regardless of how they choose to interact with your brand. 

This consistency instills confidence in customers, fostering trust and loyalty. Flexibility is equally important, offering customers multiple return options, including in-store drop-offs, mail-in returns, and designated drop-off points.

2. Elevating the Customer Experience: Convenience, Transparency, and Personalization

Beyond a well-defined policy, exceptional customer experience is paramount. Your return portal can simplify return initiation without adding work for your customer experience team, while various box-free, label-free return methods streamline the return process. In-store returns can be enhanced through QR-code returns, reducing wait times and freeing up associates to focus on more complex customer interactions.  Amazon has set the bar high when it comes to returns experience expectations, so why not have the same friction-free experience in your own store to take advantage of the foot traffic?

Transparency throughout the returns process is equally crucial. Clear tracking of return status and proactive communication about refund processing keep customers informed.

Taking customer experience a step further, personalization can make returns feel less transactional and more customer-centric. Leveraging customer preferences and order history, businesses can tailor return solutions and offer proactive suggestions for replacements or exchanges.

3. Empowering Store Associates: Training and Technology

Frontline associates play a critical role in shaping the store returns experience. Equipping them with the right training and technology is essential. Associates should be thoroughly trained on return policies, systems, and troubleshooting procedures, enabling them to handle store returns efficiently and empathetically.

Access to real-time customer and inventory data can streamline returns processing, empowering associates to system-driven decisions about inventory disposition — i.e. how to send the item to the next, best, highest-margin channel.

4. Maximizing Recovery & Profitability: Inventory Management, Recommerce, and Data Analysis

Omnichannel returns, when managed effectively, can become a source of revenue retention rather than a drain on profits. Real-time tracking of returned inventory is key to efficient processing and re-integration of goods. Optoro’s proprietary SmartDisposition® technology, for example, intelligently routes returned merchandise to the most profitable destination, whether that’s back on the shelf, an online storefront, transfer to another store, an outlet, or a distribution center.

Recommerce and circularity initiatives offer further opportunities to maximize recovery. Returned items can be refurbished and resold, or businesses can partner with resale marketplaces to tap into the growing secondhand market. Read more about circularity in retail.

Finally, data analysis is essential for continuous improvement. Analyzing return data can reveal valuable insights into customer behavior, product quality, and operational efficiency. These insights can be leveraged to optimize inventory, refine pricing strategies, and elevate customer service.

Considerations: Store Returns & BORIS

When evaluating your ability to deliver a friction-free, store returns experience, there are several factors to consider:

Your target audience – What are their shopping behaviors across channels? What are their expectations when it comes to omnichannel? How can you increase revenue by encouraging omnichannel behaviors?
Your returns trends & insights – What is your average return rate? Return rates by channel? How do they compare to industry benchmarks? Higher rates/volume and added complexity can often justify a dedicated store returns solution.
Your current store returns processes – What are you able to do with items returned to a store currently? Do you have instant markdowns or messy piles of salable inventory? How do your store associates feel about processing returns?
Your technology & software – What systems do you have in place or perhaps need to have in place? How are they communicating relevant order information to each other so that every shopper and associate has the relevant information they need to avoid frustration (i.e. friction). Evaluate your point-of-sale (POS) system, your order management system (OMS), your returns management system (RMS), and your warehouse management system (WMS).
Your CSAT for omnichannel returns – How well are you performing when it comes to creating delightful returns experiences with omnichannel complexity like BORIS? 
Your financial recovery for store returns – How much value are you able to recoup from returned inventory? Can you systematically and intelligently route items to the highest-margin channels?

Conclusion: Reimagining Returns as a Strategic Opportunity

Omnichannel returns are not merely a logistical challenge; they represent a strategic opportunity to build customer loyalty, enhance brand reputation, and drive profitability. By embracing a holistic strategy that encompasses a clear and flexible policy, empowered associates, technology-driven efficiency, and a commitment to customer-centricity, businesses can transform returns from a potential pain point into a source of competitive advantage. Instead of viewing returns as a necessary evil, businesses should embrace them as a valuable touchpoint in the customer journey, one that can foster lasting relationships and contribute to a more sustainable and profitable future.

Thomas Coleman, Sr. Director of Product at Optoro

Thomas Coleman

Sr. Director, Product

Thomas Coleman is a Senior Director of Product at Optoro focused on optimizing omnichannel returns and return methods. In his four and a half years at Optoro, he has led customer implementations, led initiatives to improve integrations and customer onboarding before moving back to Product. Prior to Optoro, Thomas worked as a product manager at Deloitte Digital in London, United Kingdom where he built applications and digital services in the visas and immigration space for public sector clients.

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