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Elements of Reverse Logistic Journeys Online Returns
· There has been a spike in online shopping due to the pandemic
· Consumers have a lot of expectations causing companies to create new plans for financial efficiency
· Artificial intelligence options are being explored
· Avercast’s Forecasting Software is the best solution
Due to the Covid-19 pandemic, online shopping has become a very popular option. Consumers have a lot of expectations, and businesses are working to implement methods to deal with returned merchandise and make it available in the most cost-effective manner.
It has become a normal practice for many to over-purchase, with the intent of returning. This has created a new area of work for the retail industry. Not only do they have exaggerated sales reports, but they have larger amounts of returned inventory than ever. Returned products are dealt with on situational bases. In most cases, retailers want to do what they can to get the product back on the shelf, so it can be repurchased. Sometimes, other avenues are taken. If it isn’t cost effective for the retailer to deal with the return process, then they will often recredit the customer without receiving the item. In some cases, retailers provide a refund after the customer donates the item being returned. All of these methods require added stress and work for the retail industry.
Anne-Marie Daugherty, an expert in the post-purchase ecosystem shared some information with Supply Chain Brain. She says they are currently exploring how Artificial Intelligence could be a means to efficiency. This would include looking at consumer purchase history, recognizing the value of different items, and a number of other variables. The main goal is for AI to help retailers be more aware an item’s future journey and their role in it.
Daugherty says, “It takes a village to have all elements accounted for to ensure that returns are quick, easy, and convenient.” As norms increasingly morph to online adaptions, it is a good idea for retailers to be aware of their different options.
Due to the pandemic, the past year has been unpredictable and full of surprises. This reality is no different in the retail industry. The ability to look at and use past sales is very valuable right now. This is where Avercast comes in. With surprises and uncertainty all around, it makes sense to turn to the industry-leading forecasting software.
Yes, in some ways current market trends are different than they have been in the past. Some areas may be new altogether. However, I think it makes sense to turn to a method that has seen so much success. It doesn’t seem like the right time to be trying out new methods, when the fact we are in a pandemic is an all-encompassing new set of experiences and trends. Avercast has proven they can use previous data to accurately predict sales. Previous data is one of the only stable things in some businesses right now. With so many items being returned, retailers could have a better idea of what products would be successful and which would not. It is a really good idea to use Avercast’s Forecasting Software to have a solid foundation to continue making plans on. Of course, it is a little bit different with the increase in returns, but Avercast’s software is the best option if retailers want consistency and reliability in their forecasts.