35% Reduction in picking errors
E-CommerceWarehouse Management
Returns Processing Time Halved, Recovery Rate Reaches 87%
A fashion platform with a 28% return rate was losing margin on every return due to slow grading and restocking. A dedicated returns cell with defined grading logic transformed returns from a cost centre into a recovery engine.
50%
Faster returns processing
87%
Sellable recovery rate
28%→18%
Effective return cost rate
The Challenge
- 28% return rate with a grading process averaging 9 days from receipt to restocking decision.
- No defined grading criteria — individual staff made inconsistent sellable/unsellable calls on the same SKU type.
- Returns processed in the same area as inbound receipts, creating congestion and cross-contamination of inventory.
The Solution
- ✓Designed a dedicated returns processing cell with defined flow stations: receive → grade → sort → restock/liquidate.
- ✓Created a grading decision matrix with 12 product categories and explicit sellable/unsellable criteria per condition code.
- ✓Implemented a 48-hour processing SLA with daily throughput tracking visible to the operations manager.
- ✓Established a liquidation channel for Grade B stock, converting previously written-off inventory into recovery revenue.
Key Outcomes
50%
Faster returns processing
87%
Sellable recovery rate
28%→18%
Effective return cost rate
Industry
E-Commerce
Solution
Warehouse Management
Client
Fashion E-Commerce Platform
Returns ManagementE-CommerceOperations
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