A recent survey of the supply chain executives of various retailers in North America reveals some remarkably similar perceptions. Mainly, they agreed that online returns were killing their supply chain operations. Among the 20 respondents, a remarkable 95 percent cited online returns as their biggest challenge. Furthermore, 85 percent of them noted that when online customers return unwanted items to stores, the costs are painful. When the returned product is not normally carried on store shelves, the retailer has to pay to ship it back to its fulfillment center and also incurs greater risks of product damage. The survey also suggested that online returns reach as high as 30 percent of purchases, suggesting the required expenses are neither periodic or rare. These executives also agreed on the solution: more integrated inventory and fulfillment practices across in-store and online channels.

 

Source: Tom Ryan, Retail Wire, September 28, 2015