Returns are part of doing business, but smart returns management ensures they don’t have to drain your profits. According to the National Retail Federation, returns accounted for 16.9% of 2024 sales, totaling $890 billion for retailers. For ecommerce, the challenge is even bigger: about one-quarter of online purchases are returned, according to Statista.
Of course, ecommerce companies cover those costs. However, the impact of returns extends beyond the cost of shipping or writing off damaged products that cannot be resold. Returns management is also a hidden cost center, requiring staff time, packaging supplies, and warehouse resources to process refunds or exchanges and to track items until they are properly restocked in inventory.
Yet failing to provide customer-friendly returns can be even more costly. An ICSC survey found that return policies influence 82% of consumers’ purchase decisions. Shoppers often check policies before they buy and may abandon carts if the process feels too restrictive. On the other hand, a simple, transparent return policy builds confidence in the purchase and trust in your brand.
That’s why solving the challenge of ecommerce returns requires a practical returns management strategy, and smarter labeling is at the heart of it.
How to Develop the Best Returns Management Processes
A great returns policy does more than save you money. It keeps customers confident in your brand and makes them more likely to shop with you again. To optimize your returns processes, start by mapping the customer journey and improving each step along the way.
> Start with Clear Policies and Procedures
Be transparent with customers about how, when, and why you accept returns. A customer-friendly policy can actually drive more sales, but it still needs to protect your business. For example, you may allow extra time for holiday returns while limiting returns on clearance items.
Keep policies as simple as possible, and make sure they’re easy to find on your website. On the back end, train employees so they know return timelines, refund or replacement procedures, and how to move items back into inventory.
Finally, back up your policies with the right technology. Replacing manual steps with smarter return labeling systems makes the process faster, more accurate, and less frustrating for staff and customers alike.
> Choose Where to Accept Returns
Retailers have several options when it comes to receiving returns, each with its own benefits and trade-offs:
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In-house warehouses: Full control over the returns management process, but higher demands on staff and resources.
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Third-party logistics (3PL) providers: Offload the burden of processing returns, though additional fees may apply.
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Drop-off partnerships or in-store kiosks: Create a smoother customer experience and can even drive foot traffic to partner businesses.
Growing trend: Self-service returns
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Customers print their own return labels or barcode labels for inventory.
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Items are placed in secure lockers.
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Employees scan the labels for processing.
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This model saves time, reduces labor costs, and delivers the speed and convenience customers expect.
The key is choosing a returns model that balances customer satisfaction, operational efficiency, and cost savings for your business.
> Use Barcode Labels for Inventory Control
Every item that comes back into your system needs to be tracked. Barcode labels for inventory control ensure products are logged correctly, routed to the right location, and available for resale as quickly as possible.
Automating this process also reduces the labor burden on your staff, while providing both your team and online shoppers with a real-time view of availability. That means faster restocking, fewer mistakes, happier customers, and proof that smarter labeling drives better business outcomes.
> Learn from Returns
Returns management systems that use barcode labels for inventory control allow you to collect data that you can analyze to learn more about customer behaviors. You can track which items are most commonly returned, allowing you to make informed decisions about whether to continue selling them.
With this information, you can make better decisions about which products to keep selling, forecast more accurately, and avoid tying up capital in items that are consistently sent back. Returns data can transform a challenge into a valuable business advantage.
> Use Linerless Return Labels
Returns can be messy, but labeling doesn’t have to be. Linerless return labels print without a paper backing, which means no clutter piling up on counters, workstations, or warehouse floors. They help keep return stations organized and efficient, especially during peak volumes.
Beyond efficiency, linerless labels reduce waste and support sustainability goals, a growing priority for today’s consumers and businesses alike. By choosing linerless technology, retailers can maintain smooth returns operations while reducing waste and reinforcing a modern, sustainable brand image.
Great Customer Experiences, Efficient Operations, Just in Reverse
A higher rate of returns for ecommerce purchases is a trend that is unlikely to end soon, but with the right returns management strategy and smarter labeling, it can become an opportunity to build trust and confidence in your brand. Carefully planning returns processes, including establishing clear policies and using return labels and barcode labels for inventory tracking, can help control costs while maintaining customer satisfaction.
Using the right technology, from printers that support linerless return label printing to automated data collection, will help you streamline return processes for your ecommerce business.
Additional Resources
Star Micronics offers labeling and scanning solutions ideal for retail and ecommerce returns management processes, including:
mC-Label2 Multifunction Printer
mC-Label3 Multifunction Printer
The Star Micronics mC-Label3 is a versatile multimedia printer that prints a wide range of labels and receipts, including both permanent and repositionable sticky linerless. It features cloud connectivity and innovative technologies like SteadyLAN and TetherLAN for enhanced printing convenience.
Star’s 1D/2D Barcode Scanners
Star offers a comprehensive range of IP-rated 1D/2D barcode scanners, ideal for diverse business needs. From retail to healthcare, our versatile scanners excel in parsing driver’s license and ID barcodes, ensuring swift and accurate data capture. Choose the perfect fit for your setup—desktop, handheld, or wireless Bluetooth options available.
A higher rate of ecommerce returns is here to stay, but it does not have to erode profits. With the right returns management strategy supported by return labels, barcode labels for inventory, and efficient labeling technology, retailers can transform returns into an opportunity to build loyalty and protect their bottom line.
Star Micronics makes it possible with smarter labeling and scanning solutions designed to take the pain out of ecommerce returns management. Contact us today to learn more.
