Returns

The Hidden Costs of “Returns”

Picture this: It’s the day after Black Friday, and returns are already flooding in. Instead of celebrating your holiday sales success, you’re watching a mountain of returns pile up that could eat into your profits faster than a kid with a cookie jar. Some customers bought multiple sizes knowing they’d send most back. Others are returning gifts that didn’t quite hit the mark. If this sounds familiar, you’re facing a challenge that’s completely changing how successful e-commerce businesses think about their 3PL partnerships.

A Tale of Two Returns Experiences

Let’s talk about something that perfectly shows why returns matter so much in today’s e-commerce world. Remember when Fashion Nova was making headlines, but not in a good way? Their returns process was such a mess that customers were waiting months for refunds, dealing with confusing return labels, and taking to social media to vent their frustrations. Behind the scenes, their 3PL was treating returns like an afterthought, and customers were noticing.
Meanwhile, Everlane was quietly revolutionizing how returns could work. Instead of seeing returns as a necessary evil, they turned them into a strength. They found 3PLs who actually understood reverse logistics and created something they called a “Returns Bar.” It was so efficient that customers would often see refunds hit their accounts before they even left the store. The wild part? Their return policy became a reason people chose to shop with them, not something they worried about.

Why Returns Aren’t Just About Taking Products Back

Think about your current situation. Maybe you’re watching perfectly good products get damaged because they’re being shipped to the wrong warehouse. Or you’re spending hours trying to figure out what’s coming back and why. Or worse, your customer service team is drowning in “Where’s my refund?” emails.
Here’s something most 3PLs won’t tell you: they built their whole operation around shipping things out, then just kind of… tacked on returns as an afterthought. It’s like they designed a car to drive forward and then wondered why it’s so hard to back up. But in today’s world, where customers might return 30% or more of what they buy, that approach just doesn’t cut it anymore.

What Great Returns Actually Look Like

Imagine if returns worked more like ordering in the first place. Your customer clicks a button, and everything just… flows. The product goes to the right place, gets checked in quickly, and your customer sees their refund hit their account in days, not weeks. It sounds simple, but making it work that way takes a completely different approach to how 3PLs handle returns.
Take what Everlane did. They didn’t just find a 3PL – they found partners who understood that returns aren’t just about getting products back in boxes. They’re about getting customers back in your store. Their returns process is so smooth that customers actually talk about it – in a good way. When was the last time you heard someone rave about a return experience?

The Real Story Behind Returns Costs

Let’s get real about what bad returns processes actually cost you. Sure, there’s the obvious stuff – shipping costs, lost inventory, storage fees. But the real killer? It’s the customers who never come back because returning something was such a hassle. Or the ones who tell their friends to avoid your store because refunds take forever. In the age of social media, a bad returns experience doesn’t just cost you one customer – it could cost you hundreds.

Finding Partners Who Get It

This is where the story gets interesting. Some 3PLs are starting to figure out that returns can’t be an afterthought anymore. They’re building dedicated returns centers, staffing them with people who know what they’re doing, and using technology that actually makes sense. But here’s the thing – they’re not always the biggest names in the business. Sometimes the best partners are the ones who built their system around returns from the start, not the ones who bolted it on later.

Making Returns Work For Your Business

Remember how Everlane turned returns into a strength? You can do the same thing. But it starts with finding a 3PL who thinks about returns differently. Look for partners who want to understand why products are coming back, not just how to get them back in boxes. Find someone who’ll show you their returns operation, not just tell you about it. And most importantly, look for a partner who measures success by how many customers come back, not just how many products do.

Want to learn more about how modern returns management could transform your business? Visit HermesLines – we built our returns process from scratch because we knew bolting it on wouldn’t work.

Remember: In today’s e-commerce world, it’s not just about how fast you can ship products out – it’s about how smoothly you can bring them back in. Your returns process might just be the difference between a one-time buyer and a customer for life.