Ecommerce apparel seller improves speed to credit, reduces returns cost, sees six-figure gain on RTV

SITUATION

A large, quickly growing ecommerce-only apparel seller was losing revenue on return-to-vendor credits because of delayed, inaccurate processing, and losing money on returns overall due to lack of reliable returns data visibility and slow cycle times: 

  • Returns were being forced ineffectively back through a forward process to one distribution center for all of North America, slowing cycle time and speed to credit
  • Customer satisfaction was eroding because the retailer and its customers lacked visibility to return/refund status. This generated a high volume of inquiry calls.

STRATEGY

Inmar implemented its full front-end API-based returns portal and set up a more time-and cost-effective DC model. Established new tracking capability to allow customers to check the status of their return. Dashboard reporting was set up to allow deeper visibility into returns data for use in improvements to reduce returns rates

RESULTS

  • Speed to credit improved from several weeks to as little as two days.
  • Transportation cost reduction projected at $80k first year with addition of second distribution center
  • Six-figure annual improvement projected on Return to vendor revenue
  • Customers are now able to independently track their return status without need to contact Customer Service