Customers returning merchandise is something that every retailer must deal with. Whether it's a shopper choosing the wrong size or color, a product breaking after purchase or an item found at a cheaper price elsewhere, there are many reasons why consumers take back merchandise for refunds or exchanges.

There is a lot of information that merchants can gather from customer returns, and with the help of retail management software, brands can ensure they have the tools needed to collect, store and analyze data related to returns.

USA Today reported that many retailers throughout the United States are putting more focus into tracking returns. One of the main reasons for this approach is so that businesses can pinpoint fraud and repeat returns, allowing them to prevent these kinds of instances in the future. The source cited industry estimates that revealed that every year approximately $264 billion worth of products are returned, which represents 9 percent of overall sales.

But fraud and other illegal activities are not the only reason why companies are turning their attention to customer returns. By monitoring which merchandise is taken back most often, merchants can determine if there are defects in products or if pricing strategies are not meeting market demands, for example. By utilizing a retail management software platform to store and analyze this information, brands can reduce their returns and boost customer satisfaction.

This entry was posted by Retail Pro on Tuesday, August 13th, 2013 at 12:58 pm .