Mapping Product Returns Processes in Multichannel Retailing: Challenges and Opportunities

Sally-Ann Krzyzaniak,Regina Frei,Lisa Jack

doi:10.3390/su14031382

Sally-Ann Krzyzaniak, Regina Frei + Show 1 more

Open Access

https://doi.org/10.3390/su14031382

Copy DOI

Abstract

An increasing percentage of products in multichannel retail are being returned, yet many retailers and manufacturers are not aware of the importance and scale of this issue. Similarly, the literature on online returns is limited. Returns processes can be very complicated, contain many manual steps that have several variations, unclear decision-making rules and, at the handling stage, often involve low-wage third-party employees guided by patchy IT systems. This article maps the complexity of product returns processes, highlights challenges and identifies opportunities for improvement, thereby contributing to a deeper understanding of the emerging field of product returns research. It also concludes that it is essential for returns to be made a strategic priority at the senior management level, implementing a Lean approach to returns systems. The research was based on 4 case studies, 17 structured interviews and 3 retail community workshops, all with British and other Western European retailers. Through triangulation of individual data, a generic process map for retail returns was created and implications for sustainability, loss prevention and profit optimisation are examined.

Highlights

Many retailers strive to build a multichannel presence as eCommerce has been growing strongly—even more so since the beginning of the pandemic
While we identified a number of examples of lean thinking in retail, similar to those reported in [32,55] and elsewhere, we found that returns processes are not lean yet and this is clear from the process maps that we have produced
Retailers and academics have recently started to become aware of the importance and scale of the product returns problem, but it remains an underestimated and understudied field

Summary

Introduction

Many retailers strive to build a multichannel presence as eCommerce has been growing strongly—even more so since the beginning of the pandemic This means integrating their virtual and physical shopping channels, and first-class customer service is often considered to be essential for driving sales. Product returns systems are complex and multidisciplinary in nature and require strategic planning; they cannot be left for loss prevention managers to deal with. This formerly simple role is typically called ‘asset profit and protection’ or similar, and its effective execution requires the right cross-functional team approach run by senior management [7]. Despite the recent increase in academic literature on product returns, there is still a lack of academic studies to support the implementation of better returns systems, especially when it comes to aspects of strategic management

Objectives

Methods

Findings

Discussion

Conclusion