What's Happening?
Retailers are increasingly prioritizing customer-centric returns processes as part of their supply chain strategies for 2026. According to a report, 22% of supply chain professionals have identified improvements in customer service as their top priority. This includes making returns faster, reducing costs for shoppers, and shortening refund lead times. Additionally, there is a significant push towards streamlining salvaging processes, with 33% of businesses planning to outsource returns processing to optimize repair and restoration. This move aims to boost sustainability and compliance while developing recommerce models. The report also highlights a trend towards localizing returns management to manage costs and reduce supply chain mileage,
with 35% of professionals prioritizing local returns consolidation. Furthermore, monetizing returns is becoming a focus, with strategies being adapted to generate more revenue from returns, including duty drawback from cross-border returns and reducing losses from returns fraud.
Why It's Important?
The emphasis on customer-centric returns and streamlined salvaging processes reflects a broader shift in the retail industry towards sustainability and efficiency. By improving returns processes, retailers can enhance customer satisfaction, reduce operational costs, and support sustainable practices. This is particularly important as consumer preferences shift towards marketplaces and recommerce, which can complicate reverse logistics. The focus on localizing returns management and monetizing returns also highlights the need for retailers to adapt to changing market dynamics and regulatory requirements. These strategies not only help in managing costs but also in maintaining competitiveness in a rapidly evolving retail landscape.
What's Next?
As retailers implement these strategies, the industry can expect to see more sophisticated technology being used to support returns management. This includes the use of portals for ecommerce returns and enhanced technical capabilities during the outsourcing of returns. Additionally, the focus on sustainability and compliance is likely to drive further innovation in returns processing, with businesses exploring new ways to minimize waste and errors. The continued emphasis on customer-centric returns and localizing management processes will likely lead to more personalized and efficient customer experiences, ultimately supporting long-term growth and resilience in the retail sector.
