FHS-APR24-PG10+11_Layout 1 12/04/2024 16:31 Page 10


WAREHOUSING, HANDLING & STORAGE


HOW TO EFFICIENTLY HANDLE E-COMMERCE RETURNS


Everyone gets an endorphin kick when an online purchase lands on the doorstep, but for various reasons, more and more shoppers are sending their orders back. Returns are one of the biggest issues in e-commerce logistics, incurring time and cost penalties if not effectively dealt with. Despite this large proportion of goods swimming against the flow of the traditional delivery process, companies can use automation to streamline returns, mitigating the impact and winning customer loyalty. Hans Jongebloed, innovation manager at Prime Vision, examines the challenges posed by returns, and explains how computer vision, robots and analytics software can help overcome them.


R


eturns have become a key consideration for e- commerce businesses. A leading online shopping platform estimated that the average return rate for online purchases to be


between 20 to 30 per cent. However, return rates can fluctuate wildly. In retail for example, one fashion label found that 70 per cent of its orders from women in Germany were returned. During a UK study in 2022, 48 per cent of shoppers surveyed said they returned goods occasionally, 15 per cent most of the time and eight per cent every time. The reasons for this are manifold. The item description may not match the product received, or goods can be damaged in transit. Back in retail, visiting physical stores with changing rooms has been increasingly replaced by bulk buying multiple clothes in various sizes online and trying them on at home. Anything that does not meet expectation or fit properly is sent back, creating incredibly high volumes of


10 APRIL 2024 | FACTORY&HANDLINGSOLUTIONS


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