Returns represent a significant and growing challenge for retailers, undermining profitability and adding pressure to already stretched resources. While peak periods like Christmas often bring this issue into sharper focus, the impact of returns continues all year round. Products that were expected to generate profit often end up costing the business in both financial and human terms as they are brought back, processed, and prepared for resale. Jay Kim, Managing Director, BIXOLON Europe, explains the role of label and receipt printers in ensuring this entire process is as smooth and productive as possible…
The True Cost of Online Returns
According to the Annual Returns Benchmark by returns software specialist ZigZag and economics research consultancy Retail Economics, online returns in the UK were estimated at around £27bn in 2024. This is a massive figure, and shines a light on the challenges retailers continue to face. What is more, ‘serial returners’, i.e., shoppers who frequently return online purchases, were responsible for sending back products worth £6.6bn last year, despite only comprising 11% of returners.
£27bn is a lot of waste, and a significant amount of goods that are lost or delayed, preventing them from being on the shop floor. But what does that actually look like in practice? Take clothing returns, for example. A consumer orders three pairs of the same jeans online in different sizes to try them on and find the best fit at home. This person returns to the store and hands two pairs back to staff at the counter. There is nothing wrong with the jeans. They are in perfect condition and can be resold.
Naturally the POS system needs to be able to accept the return, process it, and be able to add the item back into circulation for resale. The customer needs a clear, high-quality receipt from the retailer to prove the return has taken place. But the retailer also needs to be able to get those two pairs of returned jeans back onto the shop floor or back into an ecommerce fulfilment or distribution centre as quickly as possible.
Moving stock back into circulation rapidly
Linerless label printers provide retailers with the mechanism to enable this to take place rapidly on a practical physical level. This matters, particularly in busy retail environments. These printers enable pricing labels to be reprinted fast and applied to items of clothing so that they can be resold. This helps to keep the entire returns process moving, quickly, efficiently and productively.
Many of these printers are also mobile today, which enables shopfloor staff to take any items that might be stored behind a counter and relabel them on the spot before putting them back out on display to be sold. By the same token, labels could be used to mark returned items that are faulty, or for whatever other reason, so that they can be returned back to a central warehouse to be resold or queried with a supplier. For example, if an item of clothing has a faulty zip or the stitching is broken, then a label could be applied to the garment that includes an error code or an explanation for the return. The same could apply to the sale of non-clothing items, like electronics or cosmetics. The benefit of using mobile linerless label printers in these situations is that staff can hang printers on their belts and move freely around a store, printing and sticking as necessary. And because there is no liner backing produced when a linerless label is printed, there is less waste to manage and dispose of too.
The same thinking applies to ecommerce. These mobile, linerless printers can be worn by staff and used to print labels to help them receive goods and to organise how a particular returned item is dealt with and processes. Is it going back into the warehouse resale and distribution, or is it being disposed of, or is being sent back to the supplier?
Addressing the Returns Challenge: Technology vs Charges
Some retailers are trying to deal with the problem of returns by making shoppers pay for them. Asos, for example, has started applying fees to regular returners, and Pretty Little Things has even begun deactivating the accounts of those who abuse returns policies. But according to the Annual Returns Benchmark, 50% of shoppers say they’d be put off by having to pay to return something.
Others have chosen to extend their returns to improve customer experience. For example, John Lewis extended its usual returns period over the recent festive season to give customers more time and flexibility. But whether retailers are shortening or extending return windows, the question remains: are they equipped to handle returns effectively? Are receipts being printed high enough standard to avoid confusion? And do they truly have the infrastructure in place to sufficiently process any returns made?
Many retailers face significant challenges managing product returns, especially during peak seasons, but increasingly year-round too. The efficient handling of returns is essential to minimise financial and resource losses. Solutions like mobile linerless label printers can play a vital role in addressing these challenges. They speed up the relabeling and restocking process, helping retailers put items back into circulation faster, and with less waste. These tools offer flexibility and allow staff to manage returns effectively instore or in warehouses. As the cost of returns escalates, adopting these technologies can support profitability and sustainability. While retailers explore options like charging for returns, efficient systems become even more vital for balancing customer expectations and operational needs.
