In the rapidly evolving world of retail, returns have become a defining challenge—one that can erode margins, strain operations, and test customer loyalty. Yet, with the right approach, returns can be transformed from a costly necessity into a strategic advantage. Publicis Sapient’s data-driven returns optimization solutions empower retailers to reimagine the returns process, leveraging AI, predictive analytics, and omnichannel capabilities to reduce costs, improve sustainability, and deliver exceptional customer experiences.
E-commerce has revolutionized shopping, but it has also led to a surge in returns. Online purchases are returned up to three times more often than in-store buys, and by 2027, annual returns are projected to approach $1 trillion. For retailers, this isn’t just a logistical headache—it’s a direct hit to profitability, inventory management, and brand reputation. Customers expect returns to be seamless and free, while retailers must grapple with the operational complexity and cost.
Publicis Sapient’s approach to returns optimization is rooted in the belief that returns are not just a cost center—they are an opportunity to build loyalty, drive operational efficiency, and support sustainability goals. Our solutions address the full spectrum of returns management, from omnichannel enablement to AI-powered prediction and intelligent routing.
Today’s customers expect flexibility. Whether they purchase online, in-store, or through a marketplace, they want the freedom to return items through any channel. Traditionally, digital and physical returns have been managed separately, leading to fragmented experiences and inefficiencies. Publicis Sapient’s Omnichannel Returns solution breaks down these silos, enabling true “buy anywhere, return anywhere” capabilities. This not only enhances customer satisfaction but also streamlines operations and inventory management across all channels.
Returns are often driven by preventable factors—incorrect sizing, unclear product descriptions, or mismatched expectations. Our Returns Prediction Engine leverages customer data and historical behavior to identify high-risk transactions before they happen. By surfacing personalized recommendations, sizing guides, and targeted interventions at the point of purchase, retailers can help shoppers make better decisions and reduce the likelihood of returns. AI models also flag patterns such as serial returners or potential fraud, enabling proactive management and policy enforcement.
Once a return is initiated, the journey of that item is critical to both cost and sustainability. Publicis Sapient’s Returns Optimizer uses AI to determine the optimal destination for each returned product—whether that’s restocking in a high-demand location, routing to a refurbishment center, or prioritizing for resale. By dynamically matching returned inventory with real-time demand signals, retailers can minimize markdowns, reduce transportation costs, and accelerate the return-to-shelf cycle. This approach not only protects margins but also supports circular economy initiatives by maximizing the value and lifespan of each product.
Returned items don’t have to be a loss. Our Resale Optimization Engine analyzes data across the business to identify the best path to resale, whether through primary channels, secondary markets, or rental and subscription models. By intelligently matching products to the right channels and customers, retailers can recover value, reduce waste, and tap into new sources of revenue—all while reinforcing their commitment to sustainability.
Publicis Sapient’s returns optimization solutions have delivered tangible results for leading retailers:
For example, a global apparel retailer leveraged AI-driven returns prediction and routing to significantly decrease unnecessary returns and accelerate the resale of returned items, resulting in both cost savings and a measurable boost in customer satisfaction. Another leading jewelry brand used advanced analytics to optimize omnichannel fulfillment and returns, reducing delivery times and shipping costs while maintaining tight control over inventory.
At the heart of Publicis Sapient’s returns optimization is the Control Tower Digital Brain—a real-time intelligence layer that orchestrates the entire supply chain, including returns. By embedding AI and machine learning into every stage of the returns process, retailers gain:
This intelligence enables retailers to answer critical questions: Where should a returned item go to maximize resale value? How can we reduce the environmental impact of returns? Which customers need personalized support to prevent future returns?
With decades of experience in digital business transformation, AI, and supply chain modernization, Publicis Sapient is uniquely positioned to help retailers turn returns into a strategic asset. Our outcome-driven approach, powered by industry-leading technology and deep retail expertise, ensures that every engagement delivers measurable business value.
Ready to transform your returns process from a margin-eroding necessity into a source of competitive advantage? Connect with Publicis Sapient to discover how AI-driven returns optimization can help you reduce costs, improve sustainability, and delight your customers in a rapidly changing retail landscape.