AI Supported Returns Management Helping Retailers Maximize Recovery

Shifting consumer behavior and online retail sales are causing unprecedented increases in return rates. Ecommerce return rates are in excess of 30 percent and predicted to rise by seven to nine percent year-over-year.

This has caused a serious issue for retailers — managing the billions of returns and continuing to net some recovery.

We are seeing this daily with our retail partners as a leader in supply chain technology that provides solutions that solve costly problems like the ones detailed above. What do retailers want? To automate returns management and regain control.

AI supported machine learning and data science can do just that. Using intelligent AI disposition engines, retailers can decrease touches on returns and positively impact their bottom lines. Let’s take a closer look.

Our disposition engine is one of a kind, providing data-driven disposition decisions on returns in real-time. These lightning fast decisions can be made anywhere in the supply chain, but having the ability to make them at the point of return (in-store return counter) has a profound effect.

One of our retail partners is currently making disposition decisions in-store — at the returns counter.

When a customer returns an item in-store, the store representative scans the UPC of the item and R1 Cloud finds it in the inventory for that retailer and then makes a disposition in seconds.

This decision is based on a number of factors, such as velocity of sales, sales trends, customer demand, re-marketing costs, repair costs, and more.

The decision is delivered based on these factors and the returned item is triaged as one of the following: Restock, Refurbish, Liquidate, Recycle, Hazardous Material, or Landfill.

This is done by implementing AI supported dynamic pricing.

Utilizing an automated pricing model and data curated via machine learning and data science, returns are listed and priced on over 50 online marketplaces. Initial pricing is set on items, but using AI automation, is adjusted throughout the listing life-cycle.

The intelligent dynamic pricing is calculated and adjusted based on factors, such as online customer reviews, ratings, pricing trends, competitor pricing, sales velocity, purchase history, product launch date, life cycle, and more.

Artificial intelligence is disrupting many industries, including supply chain. Retailers need to take a hard look at their returns management processes and prepare for the perpetually rising return rates to come.

The current trends in consumer behavior associated with returns will continue. Implementing AI returns management SaaS is the solution. Are you maximizing recovery on returns?

goTRG is a leader in the implementation and execution of Omni-Channel and Supply Chain business solutions & SaaS. goTRG’s innovative R1 Cloud delivers the smartest choices for every touch, movement and price decision to some of the world’s largest companies resulting in superior net margins, controls and sell-through while reducing their environmental impact. If you need it, we’re the ones that get it done!

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