In the rapidly evolving world of retail, returns are no longer just a necessary cost of doing business—they are a defining moment in the customer journey and a critical lever for profitability. As e-commerce continues to surge, returns have grown exponentially, with projections indicating that nearly $1 trillion in merchandise will be returned annually by 2027. For retailers, this presents both a challenge and an opportunity: how can the returns process be transformed from a margin-eroding pain point into a strategic advantage that drives customer loyalty and business growth?
Publicis Sapient’s data-driven approach to returns optimization is designed to do exactly that. By leveraging advanced analytics, omnichannel capabilities, and seamless customer experiences, we help retailers turn returns into a loyalty driver while improving operational efficiency and profitability.
Returns are a complex, multi-faceted issue. For customers, a return is often a source of frustration—a hurdle between them and the product they truly want. For retailers, returns can be costly, impacting margins through reverse logistics, restocking, and markdowns. E-commerce, in particular, sees three times as many returns as brick-and-mortar retail, amplifying the challenge.
Yet, the way a retailer handles returns can make or break the customer relationship. Today’s consumers expect returns to be as easy and convenient as the purchase itself. Seamless, transparent, and flexible return options are now table stakes for building trust and repeat business.
Our holistic approach to returns optimization addresses the full spectrum of challenges retailers face, balancing customer expectations with cost-effective strategies. The framework includes:
Traditional retail models often treat digital and in-store orders as separate entities, making it difficult to deliver a unified returns experience. Our Omnichannel Returns solution breaks down these silos, enabling customers to buy anywhere and return anywhere—whether online, in-store, or through hybrid models. This flexibility not only meets rising customer expectations but also increases store foot traffic and cross-channel engagement.
Prevention is the best cure. Our Returns Prediction Engine leverages customer data and historical purchase/return behavior to identify patterns and predict the likelihood of returns at the point of sale. By surfacing personalized recommendations—such as sizing guidance, fit tools, or product specifications—retailers can help shoppers make more informed decisions, reducing the propensity for returns before they happen. This proactive approach not only cuts costs but also enhances the customer experience by ensuring shoppers get the right product the first time.
A frictionless return or exchange process is essential for customer satisfaction. Our Return/Exchange Engine integrates seamlessly across all channels, making it simple for customers to initiate returns, select exchange options, or receive refunds. Real-time communication keeps customers informed at every step, reducing anxiety and minimizing service inquiries. By automating routine scenarios and providing clear, consistent updates, retailers can build trust and loyalty—even when things don’t go as planned.
Returned items don’t have to be a dead end. Our Resale Optimization Engine analyzes data from across the business to identify the best path to resale, whether that means restocking items in locations with high demand, optimizing shipping routes to minimize costs, or leveraging secondary markets. By intelligently routing returned products, retailers can reduce markdowns, improve inventory turnover, and recapture value that would otherwise be lost.
The business case for returns optimization is compelling. For example, a leading Latin American retailer partnered with Publicis Sapient to implement a supply chain control tower, gaining end-to-end visibility into inventory, fulfillment, and reverse logistics costs. This transformation delivered $145 million in estimated savings in reverse logistics—including markdown and logistics costs—and $2 million in immediate transportation cost optimization through item-level route calculation. These savings were achieved while simultaneously improving the customer experience with more reliable, flexible return options.
Returns are no longer just a back-office function—they are a strategic touchpoint that shapes brand perception and customer loyalty. Retailers who excel at returns optimization see tangible benefits:
What sets Publicis Sapient apart is our end-to-end, data-driven approach. We combine deep retail expertise, advanced analytics, and proven technology to deliver measurable business outcomes. Our solutions are designed to integrate with existing systems, scale with your business, and adapt to evolving customer expectations.
Returns don’t have to be a cost center. With Publicis Sapient’s data-driven returns optimization solutions, you can turn every return into an opportunity to build loyalty, improve profitability, and differentiate your brand in a crowded marketplace. Connect with our experts to discover how we can help you reimagine the post-purchase journey and unlock the full potential of your retail business.