{"id":13958,"date":"2023-01-12T07:00:05","date_gmt":"2023-01-12T15:00:05","guid":{"rendered":"https:\/\/www.logiwa.com\/?p=13958"},"modified":"2025-05-08T03:22:47","modified_gmt":"2025-05-08T10:22:47","slug":"the-role-of-artificial-intelligence-ai-in-returns-management","status":"publish","type":"post","link":"https:\/\/www.logiwa.com\/blog\/the-role-of-artificial-intelligence-ai-in-returns-management","title":{"rendered":"The Role of Artificial Intelligence (AI) in Returns Management"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”auto” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” ul_item_indent=”30px” custom_css_main_element=”||h3 {|| font-size: 18px !important;|| margin-top: 1px!important;|| margin-bottom: 1px!important;||}||||.et_pb_text_0 h2 {|| line-height: 25px!important;||}||||h2 {|| margin-top: 3px!important;|| margin-bottom: 5px!important;||}||||.blog-toc ol, .blog-toc ul {|| list-style-type: decimal!important;||}||.blog-toc ul {|| list-style-type: disc!important;||}||||.blog-toc {||margin: 0!important;||}” sticky_enabled=”0″]The larger the ecommerce sector grows<\/a>, and the more complex supply chains become, the smarter warehouse operators need to be in their approach to high-volume order fulfillment<\/a>. It is no longer enough to design an efficient warehouse layout<\/a> or anticipate the right amount of staff to help manage demand: you must be able to ensure orders run smoothly in both directions.<\/p>\n

For retailers and third-party logistics (3PL) providers, returns management<\/a> and reverse logistics have become two of the most impactful factors in long-term direct-to-consumer (DTC) success. But getting it right is easier said than done. Luckily, tools like artificial intelligence (AI) can help warehouses tackle returns head-on.<\/p>\n

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Contents<\/p>\n

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  1. Ecommerce: A World of Returns<\/a><\/li>\n
  2. The Cost of Poor Returns Management for Warehouses<\/a><\/li>\n
  3. The Benefits of AI on Returns & Reverse Logistics<\/a><\/li>\n
  4. Getting Started with Warehouse AI<\/a><\/li>\n<\/ol>\n<\/div>\n

     <\/p>\n

    Ecommerce: A World of Returns<\/h2>\n

    According to University of Alabama\u2019s study on \u201cInformation Search and Product Returns Across Mobile and Traditional Online Channels\u201d,\u00a0 30% of all ecommerce orders are returned by consumers, compared with 9% for brick-and-mortar stores<\/a>. That statistic is staggering when one considers that the total number of ecommerce orders surpassed 5.2 trillion U.S. dollars worldwide<\/a> in 2021 and is still steadily growing.<\/p>\n

    Should the current rate of ecommerce expansion continue its current trajectory, the anticipated cost of ecommerce returns<\/a> will soon reach more than a trillion dollars a year <\/i>for online sellers. If you have not made mastering the art of returns a priority, now is the time to assess your operations and make improvements.<\/p>\n

    The Cost of Poor Returns Management for Warehouses<\/h2>\n

    The cost for retailers and 3PLs to manage reverse logistics<\/a> is so high that many have begun to simply refund the purchase price and cut the losses directly when a customer wishes to make a return. The alternative returns process<\/a> is considered more time consuming and expensive than letting shoppers hang on to the returns and offering their money back.<\/p>\n

    According to CBRE, the average cost of an ecommerce return ranges from $20.75 to $45.25. That factors in the costs of transportation, processing, and markdowns\/liquidation to resell regardless of item value.<\/p>\n

    This is not an effective or affordable option for many warehouse operations<\/a>. That said, the consequences of an ineffective returns operation<\/i> can result in more than just loss of product, operational efficiency, and labor time. It can lead to irreparable brand damage and cause a snowball effect of financial losses. This makes the support of AI and machine learning solutions invaluable.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row disabled_on=”off|off|off” module_class=”center-vertically” _builder_version=”4.22.2″ _module_preset=”default” background_color=”#eef1f8″ background_enable_color=”off” use_background_color_gradient=”on” background_color_gradient_stops=”#6717cd 51%|#0b0b0b 100%” width=”100%” module_alignment=”center” custom_margin=”42px|auto|45px|auto|false|false” custom_padding=”30px|40px|30px|40px|false|false” border_radii=”on|12px|12px|12px|12px” box_shadow_style=”preset1″ box_shadow_vertical=”0px” box_shadow_blur=”10px” box_shadow_color=”rgba(74,75,109,0.09)” global_module=”3761″ locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” header_3_text_color=”#ffffff” header_3_font_size=”30px” header_3_font_size_tablet=”30px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n

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