The retail world of today offers a thin line between barely surviving and thriving. That’s why every dollar to the bottom line matters. Reducing customer returns can be crucial to determining which side of the line you fall on. This infographic covers the Coresight Research Innovator Intelligence Report: Solving Retail’s Most Expensive Problem with AI-Powered Returns Reduction.

1. 75%
The Returns Opportunity
The Financial Impact
As eCommerce continues to grab a greater share of the retail market, return rates and processing costs continue to
climb. Returns are one of the retail industry’s most expensive problems.
Consumer Expectations are Growing
Fast, free, and easy returns are the standard expectation of today’s consumers. Having a customer-friendly return
policy that is both no-cost and free from hassle is not just a competitive advantage, but a competitive necessity.
Returns are an Opportunity
Most returns happen due to issues such as Wrong Item Shipped, Damaged Product, or Inaccurate Product Description.
Returns Reduction unlocks a world of financial opportunity for retailers.
of first-time customers
who return their order
will never buy from
that retailer again
Most shoppers return online purchases
by shipping back to the retailer
of shopping journeys
now start online
of all product returns
are under the control of the retailer
Only 1⁄3 of retailers
quantify the full cost of returns
>7 People
handle returns processing
The value of
returned merchandise
in 2018
Coresight Research, Innovator Intelligence:
Solving Retail’s Most Expensive Problem With AI-Powered Returns Reduction.
https://coresight.com/research/innovator-intelligence-solving-retails-most-expensive-
problems-with-ai/
30%
50% 80%
65%
Source
Cumulative EBITDA Savings
1%
3
2
1
2% 3%
$2.6MM
$400K
$1.3MM
Revenue: $50MM Current Return Rate: 25%
Year
Cumulative Return Rate Reduction
Every
Every $1MM in returns reduction
adds $0.5MM to EBITDA
Billion
$369
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