In-Store Kiosks Help Maximize Financial Returns on Product Returns

Blog

In-store kiosks help maximize financial returns on product returns

  • In-Store Kiosks Help Maximize Financial Returns on Product Returns
2 minute read

Faced with overwhelming volumes of product returns, retailers are trying just about every strategy to fight back. In a Blue Yonder survey, 89% of retailers reported that they’ve updated their policies to reduce product returns. But 59% of those companies actually saw an increase, not a decrease, in returns following their policy changes.

Obviously retailers need to work to minimize shoppers’ tendency to buy multiple sizes, purchase and try on clothes just for social media, and engage in fraud. But there’s no denying that returns continue to grow steadily, accounting for $890 billion in merchandise value last year alone.

A $5 billion retailer that makes half of its sales online has a $750 million returns problem, based on average return rates. In our opinion at Blue Yonder, most retailers aren’t doing enough to mitigate that enormous problem through internal improvements. While high returns volumes seem here to stay, there’s a lot retailers can do to manage them more efficiently.

We believe a key success factor is maximizing the financial return on returned merchandise by minimizing processing costs and getting products back into sellable inventory as quickly as possible. Today the average cost of processing a return is 30% of a product’s original price. We don’t think that’s acceptable—and you shouldn’t either.

In previous blogs like this one, we’ve discussed ways to optimize the end-to-end returns journey for maximum speed and cost efficiency via Blue Yonder’s returns management capabilities. Today let’s take a look at an underexplored hero of that journey: The in-store returns kiosk.
 

Stop letting returns eat into your profits

Discover how to optimize your end-to-end returns journey for maximum speed and cost efficiency with Blue Yonder's capabilities, helping you reduce waste and boost your bottom line.

Discover More

Return kiosks: Small investment, big impact

There are many benefits of having shoppers return merchandise directly to your stores, instead of using other methods like mailing them to a warehouse. Carrier fees are eliminated. Warehouse effort is reduced. Packaging and other environmental impacts are minimized.

And, let’s face it, you have shoppers right there in the store, where they’re likely to browse and make another purchase. Research has shown that 70% of consumers are likely to make an additional purchase from your retail brand following a positive returns experience.

But there are costs associated with in-store returns, too. In the face of significant labor shortages, you’re asking busy store employees to add to their responsibilities, becoming on-demand returns processors. You’re taking employees away from valuable shopper assistance roles that help drive purchases. And you could be delivering an inconsistent, sometimes suboptimal consumer experience, as shoppers are forced to wait in long queues during peak hours.

The beauty of in-store return kiosks is that they boost revenues by creating a fast, seamless, consistent return experience—and, at the same time, they cut costs.

These standalone devices enable customers to return items in-store—without contact, packaging or a pre-printed label. Shoppers simply use the kiosk to complete their returns, and place their item in a drop box. Consumers process their returned merchandise independently, in as little as 60 seconds, without having to interact with store staff. In consumer surveys, shoppers have given Blue Yonder’s in-store kiosks a net promoter score (NPS) of more than 80—so they’re a proven way to drive loyalty and satisfaction.

In-store returns kiosks are also a proven way to maximize your return on returns, for a small financial investment. They’re simple to set up and maintain, as well as unobtrusive—but they work hard behind the scenes to optimize the journey of your returned merchandise.

In-store kiosks may look like they’re just sitting there, but here’s what they’re doing:

  • Positioning in-store product stock for an immediate return to the shelf
  • Freeing up checkout queues and staff availability
  • Driving in-store foot traffic
  • Encouraging consumers to make additional purchases via a fast, easy returns experience
  • Capturing data on shoppers, products and return reasons
  • Enforcing your standards and barring out-of-policy or fraudulent returns
  • Issuing immediate refunds, vouchers or discount coupons that incentivize shoppers

 

In just one minute, consumers can be done with their returns task and on their way. Compare that with the cumbersome effort associated with filling out paperwork, packing up products, and taking them to a post office or carrier. Or standing in a long checkout queue. It’s easy to see why in-store return kiosks increase shopper satisfaction and drive repeat business, while also cutting costs.

Losing money to fashion returns fraud?

You're not alone. But there's good news: digitalization offers a powerful defense! Read on to find the essential insights and digital strategies to help you reclaim control and protect your revenue.
 

Discover More

Put kiosks to work—in a way that works for you

Every retailer is different, so it makes sense that every in-store returns kiosk program will look different. Blue Yonder is an expert at creating in-store kiosks and related best practices aimed at maximizing your return on investment.

Multiple kiosk designs and sizes are available—including standard, countertop, compact, and in-wall models—to accommodate every retail environment. Integrated features can include touchscreens, barcode/QR scanners, label printers, accessibility controls and drop/fill sensors.

Kiosks can be programmed with customized returns policies, as well as orchestration rules that guide the immediate disposition of returns. While some products can be re-shelved immediately, others might be sent to a warehouse, partner or marketplace supplier for processing. You can also use your kiosks to communicate promotions, invite consumers to provide feedback or offer incentives like discounts. Urgency to repurchase can be created by issuing time-sensitive coupons.

Blue Yonder can also add reporting and analytics capabilities that monitor uptake, usage, shopper satisfaction and other key performance metrics. Every retailer can maximize the value and contributions of their in-store kiosks, based on their own objectives. Blue Yonder’s role is to make your unique vision come to life.

Drop everything—and start taking advantage of kiosks today

Retailers face some incredibly complex challenges today. In-store return kiosks are an easy, cost-effective, yet high-impact way to address the growing problem of product returns.

Blue Yonder kiosks have already processed over 50 million product returns, with a 93% retailer satisfaction rate. What are you waiting for? Contact Blue Yonder and start capitalizing on the benefits of in-store return kiosks today.

 

What are you waiting for?

Blue Yonder kiosks have already processed over 50 million product returns, with a 93% retailer satisfaction rate. Start capitalizing on the benefits of in-store return kiosks today.

Explore Our KiosksGet In Touch