Today, Explained cover image

Today, Explained

Many unhappy returns

Jan 5, 2024
25:45
Snipd AI
Discover the complex process of online returns, including insights from a material handler in a processing facility. Learn about the fate of returned items, the challenges of reverse logistics, and the impact of consumer habits on retailers, such as bracketing and the trend of charging for returns.
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Podcast summary created with Snipd AI

Quick takeaways

  • The process of handling returns involves a vast network of infrastructure and resellers, contributing to the growth of the reverse logistics industry.
  • To discourage excessive returns, retailers are starting to impose fees on return shipments, but consumer behavior remains unchanged and return rates remain high.

Deep dives

The Complex System of Returns Processing

The process of handling returns involves a vast network of infrastructure, transporters, warehouses, and resellers to accommodate the hundreds of millions of products that consumers send back. Inmar Intelligence is one such company that handles returned items for retailers. Inside their facility in Pennsylvania, material handler Michael sniffs sweatpants as part of his job. The large-scale facility, spanning 300,000 square feet, stores and processes various types of returns, including drugstore items, rugs, and apparel. Bracketing, the practice of buying multiple sizes of clothing or rugs and returning the unwanted items, is common. The high return rates in online shopping have contributed to the growth of the reverse logistics industry.

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