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What is the optimal solution to return management and how to make your business successful?

By Vishal Thakur 2nd December 2021

Returned logistics are a threat to businesses that can’t be avoided. It has always been painful for businesses to see customers’ dissatisfaction with their service. Every chain of marketing has witnessed this return as a hindrance to their goal. 

Nevertheless, it can’t be denied that the returns are the part of the businesses, if the 10 products are sold in a day then there might be a chance of return of the 2 products by the next day. 

Moving ahead, conflicts in the interest of one cannot be determined by the businesses perfectly, but managing such fluctuations can lead to the perfection of its day-to-day operation. 

In simple words, it can be stated that before your product returns hit from number 2 to number 5 per day, you need to have a proper strategy planned for its effective management. 

Types of Product Return 

Every solution requires proper research over the problem. With the same, return management requires synchronizing the problem faced by the consumers. About the returns, they are categorized into two types: controllable and uncontrollable returns. Let’s discuss it in detail to find the alternative method to each one of the returns. 

  1. Controllable Return 

Controllable returns occur from mismanagement, difficulties in operational activities, errors by the seller or the manufacturers can lead to such product return to the warehouse.

In simple terms, it can be termed as the lack of management or improper selling activities that lead to improper product and hence returned by the customers.

Some of the mismanagement activities could be wrong items delivered, improper packaging, mishandling of products while deliveries could lead to poor visibility of packaging, lack of proper address or the owner over packaging, low quality of the product, miscommunication, or late delivery processes.

Such things causes can lead to customer dissatisfaction and result in the return of the product. 

These fault lines can be handled if the company strategizes with the right process.

Returns management can be achieved properly by allocating and handling the product, better packaging, better transportation facilities, proper stabilizing in the warehouse, and subsequent distribution of the products through the supply chain. 

  1. Uncontrollable Returns

Uncontrollable Returns are inevitable. They can’t be strategized to avoid in the future but can be organized to bear the low loss. The reason for such returns originates with the customer’s fluctuations in interest. They might develop to opt for the other variant or no variant as of their want. The returns can’t be avoided but can be allocated and cleared. 

Managing the uncontrollable returns firstly requires you to allocate them more safely. After, it requires you to adopt a strategy and clear the stock in an advanced way i.e. clearing the stock in the sale. Such planned strategies can help businesses to lower the risk of return. 

How to Manage Such Returns?  

The management of return involves one moving ahead step by step to be very secure with it. The mentioned tips below will help to manage the return:

  1. Allocation of received products 

Once the return of the product takes place, it is stored in your warehouse or any centralized location separately. Such receivables are required to be allocated in a safe place. Maintaining the worth of the product can help you in synchronizing its best use. 

  1. Sorting of the products 

The received products are to be sorted to derive the number of products that were returned. After the derivation, they are to be categorized on their characteristics such as color, size, variant, patterns, etc. Sorting down at one place with the respective character can help you to easily identify the number of the product. 

  1. Processing

Data maintenance is very necessary, especially in the trading part. Once the item is received the item is looked forward to processing. It involves the maintaining record of the product returned by the vendor or the people, its location and the types of product, duration of the product, and other necessary details associated with it.

  1. Analyzing the products 

This step involves the analysis of the product to generate its real value. The analysis is involved to look out if the product is in good condition or not, does it require refurbishment or repair, can it be resold at its actual price, etc. With such analysis, the company will be able to generate the true potential of the product. 

  1. Re-sale of the product 

The last and most important step is associated with the product liquidity, or say the sale of the product. The products can be re-sold by own-self, using the vendors, offering various promotional tools such as discounts and offers. The product with refurbished value can be sold at the secondary market to clear the stock and liquidate it. 

The Optimum Solution For Returns Management 

Return management can be worthy if administrative properly. The companies could be able to generate more revenues if they have effective management of the return. 

Decreasing the variable cost can lead to the companies increasing their margins, but due to the manual return process, it is tougher for them to implement. So what is the optimum way? How can a company increase its margin without decreasing its variable cost and lead to the success of the company? 

The listed activities could help you down to figure out the best practices of management: 

  • Enhanced customer service

Controllable returns can be eliminated through effective management. The better management of return products starts with enhancing your customer service policy. This policy is associated with having the search over the customer’s interest, taste, need, and want of the product. In summary, it is about having better customer knowledge. Such research will help the company to determine the type of product that is being prevalent as a trend in the market. This could help companies to avoid the lack of interest factor from the returned products.

  • Better communication

To avoid mismanagement in operational activities, a better and smooth flow of communication is required in the working environment. With faster communication, the different departments can maintain the coordination in an effective way which can lead to fewer errors in the organization. For example – Initiating smoother communication will help to decrease the risk of wrong product delivered. Hence, this would also reduce one factor of return product. 

  • Providing the fastest delivery. 

The crucial factor affecting the return of the product is the late delivery by the companies. Improving it with better facilities can help the companies to avoid more numbers of return products. This will also help the companies to gain the interest of the customer and build customer loyalty

  • Effective inventory management

This step is associated with dealing with uncontrollable returns. Having a proper allocation of returned products will help the company to avoid any mishandling of the product. Storage and analysis of the products can help the company to derive the potential value of the product. This would also help the company to find the products which can be resold without any spending extra cost over and also help to clear out the stop increase the profit. 

  • Clearing out the returned stock

The products which are returned are needed to be cleared out to derive its cost. The products which are required to be refurbished can be repaired and sold to the secondary market. Whereas, the products that are in good condition can be sold through various third parties. Such third parties will act as a partner for clearing your stock and increasing your effectiveness. So, choose these managing partners wisely.


Returns may vary from company to company but, the management of the returns is necessary to increase the company’s profit and turn it into a successful business. Companies using such policies can have sound and effective management without getting feared about the returned items.


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