Customer Return, turn problems to opportunities

Published by SKF-Team | August 8, 2025

Returns:A Growing Challenge for Retailers

In today’s retail world, returns are more than just a customer service issue—they’re a major drain on profits. According to a June 27, 2025 article from the Forbes Technology Council, U.S. retail returns exceeded $800 billion in value last year, and the trend shows no sign of slowing. Each return brings hidden costs—reverse logistics, repackaging, restocking—and often, the heartbreaking reality that many perfectly good items never make it back to the sales floor.

But there’s good news: a growing trend called recommerce is changing the game.

A recent report by DHL Supply Chain uncovers how retailers are changing their game plans to minimize both financial and environmental waste. In this article, we’ll unpack those findings and explore how companies like SKF Tech Corp are part of the solution, not the problem.

What Is Recommerce and Why Does It Matter?

Simply put, recommerce is the process of reselling returned, pre-owned, or refurbished products. It’s a fresh take on the traditional resale market, but with a modern twist—leveraging technology, logistics, and quality control to put products back into customers’ hands instead of in landfills.

As the Forbes article points out, this approach tackles two big issues at once:

Financial: Retailers recover value from returns instead of writing them off.
Environmental: Recommerce keeps products in circulation, reducing waste and the demand for new manufacturing.

With growing consumer interest in sustainable shopping, recommerce isn’t just a nice idea—it’s a competitive advantage.

The Hidden Costs of Returns

While the free-return culture has become a selling point for many retailers, it comes with steep consequences:

Reverse Logistics Expenses – Shipping products back, sorting them, and assessing their condition.
Product Depreciation – Items lose value the moment they’re returned, especially seasonal goods.
Waste Management – Many products, especially electronics or fashion items, end up discarded if resale processes aren’t in place.

According to Forbes, for every $100 in returned merchandise, retailers lose roughly $10–$15 just from handling costs—not counting lost sales opportunities.

How Recommerce Solves the Returns Problem

Recommerce provides a structured way to capture value from returns:

Inspection & Refurbishment – Ensuring the returned product is functional, clean, and resale-ready.
Resale Channels – Selling through online marketplaces, outlet stores, or in-house resale platforms.
Data-Driven Processes – Using analytics to predict return patterns and streamline the recommerce workflow.

This approach doesn’t just save money—it also builds brand trust. Customers increasingly appreciate brands that prioritize sustainability and resourcefulness over waste.

The Sustainability Bonus

Retailers embracing recommerce aren’t just protecting profits—they’re making a measurable environmental impact. Every refurbished laptop, smartphone, or appliance that gets resold means:

Less electronic waste in landfills
Reduced demand for new manufacturing and resource extraction
Lower carbon footprint from production and shipping of replacement products

In an era where consumers are scrutinizing brands for their environmental policies, recommerce is both a practical and ethical move.

Final Thoughts: From Losses to Opportunities

Returns will never disappear from retail, but they don’t have to be a profit killer. As highlighted by the Forbes Technology Council article, recommerce turns the tide—helping businesses recover value, meet sustainability goals, and win over eco-conscious customers.

For retailers looking to stay ahead, the message is clear: build a robust recommerce strategy now, and you’ll be ready to turn your next return into your next sale.

References:
Forbes Technology Council. (2025, June 27). Returns Are Killing Retail Margins—Recommerce Offers A Solution. Forbes. https://www.forbes.com/councils/forbestechcouncil/2025/06/27/returns-are-killing-retail-margins-recommerce-offers-a-solution/