E-Commerce sectors are not only providing quality products at competitive prices but also compete with one another to satisfy the customer needs by providing timely delivery and returning goods option at no cost. A customer wants the return policies free and transparent, but returns are costly. Based on UPS study, processing returned goods vary between 20% and 65% of the costs of the products produced. When transportation is involved, the total cost of handling returns can be much higher.
More attention must be paid to warehouse operations for managing returned goods, as there is an increase in return flows, not only in terms of number but also in terms of maintenance. The management of the return process should not be treated the same as a process for products leaving the warehouse (forward flow). Warehouses are negatively affected by the return process as they add extra burden to the day-to-day processes.

The process of returning has become routine and can not be avoided. After all, when customers buy the products, they can not physically see them or touch them before the purchase, the reference point for them here is pictures only. Such returns are perhaps the most difficult because it is almost impossible to predict consumer behavior. Well-established companies also have to face returns. Flipkart has a return percentage varying from 12 percent to 20 percent, although in certain exceptional cases the return percentage can be higher than 30 percent. How effectively firms handle return products accomplished by WMS and automation is the critical aspect that gives these firms a competitive edge.
Advantages of automation in handling of returned products.
- It enables the management of return goods in real-time with instant collection from the area, processing the information and dispatching it to cross-docking
- WMS (Warehouse Management System) integrated with automation, monitors technical aspects of returned goods, and stores the products into separate inventory for damages or incorrect orders.
- WMS ensures that returned items are not over-stocked, if the consumer makes an order, priority is given to the returned items.
E-commerce Warehouses operated by WMS with automation to manage returns, streamline their operations, and increasing profits. Are you a company looking for automating your warehouse to manage your returned orders and increase efficiency? Flexli Technologies can help you to reach your desired goals. Our WMS can handle both the management of returned goods as well as on-going warehouse products, thus increasing performance and profitability.
One of the factors which contribute to the return of orders is the unpredictable behavior of the customer. Flexli has a solution for this. You can test, predict customer behavior with our Machine Learning algorithm which can help to reduce the rate of return. (Know more about how Machine Learning develops warehouse efficiency). We believe that each customer is different and that their needs are different, so our tech experts analyze the warehouse layout and develop a personalized solution focusing on the storage and handling of returned items, making the process cost-effective.
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