Product returns represent a costly endeavor for manufacturers and retailers. Approximately 10.6% of total U.S. retail sales – that’s $428 billion in merchandise — were returned in 2020. While most companies consider these returns a necessary evil, a new White Paper by The Blumberg Advisory Group explores whether this pain could be minimized.
Return rates are increasing
Overall return rate for computer and consumer electronics products can range from 3% to 15% of product sales, and are rising each year.
Return process is complex
There are multiple, costly steps in the return process, from return material authorization (RMA) to shipping and receiving, processing, asset recovery, and disposal.
Not all return reasons are equal
It is easier to address technical returns such as malfunctions, installation, and setup, than non-technical returns as those are more subjective.
Strategies that reduce returns are limited
Tactics such as restocking fees, enhanced selling skills, better instruction manuals, use of analytics, digital onboarding, remote diagnostics, and training videos, have all fallen short of their goal.
The new recommended approach
Up-and-coming technology can be deployed across support organizations to reduce or eliminate product returns due to technical or user issues.
Visual assistance on the rise
The technology can improve KPIs related to other reverse logistics activities such as Average Handling Time, Truck Roll Rates, and First Contact Resolution.
For full access to the comprehensive White Paper highlighting the factors driving computer and consumer electronics returns, as well as the different strategies that brands are employing to minimize these returns, download “Product Returns Avoidance: Strategies for Reducing Product Returns in the Computer & Consumer Electronics Industry” now.