Returns Management, Reshaping Retail Profitability

ReturnPro

July 9, 2025

In the fast-paced world of retail, sales numbers and customer acquisition often steal the spotlight. Lurking quietly behind the scenes is a growing challenge that many enterprise retailers are struggling to master: returns management. Once seen as a necessary evil, the handling of product returns has become one of the most complex and costly aspects of modern retail operations.

With the explosive growth of eCommerce, online and in-store return rates have skyrocketed. On average, 16.9% of annual retail sales1 will be returned and in categories such as apparel and electronics this number can be almost twice as much. This creates a logistical and financial burden that few retailers are fully prepared to handle. The ripple effects go far beyond just processing items coming back through the door. Poor return policies frustrate customers, and according to ReturnPro’s 2025 The State of Consumer Returns Survey Report, 82% of shoppers saying that a negative returns experience would impact their decision to shop with a retailer1. Manual workflows drain labor resources, and the inefficient flow of returned goods through the reverse supply chain causes warehouses to swell with unsellable inventory.

Read the article here: https://www.returnpro.com/resources/blog/returns-management-reshaping-retail-profitability