Scoping innovative retail product returns pathways

Purpose
Product returns in omnichannel retail are wasteful and generate significant financial and environmental impact. Returns systems often suffer from low efficiency and effectiveness. Innovative technology and service solutions are proposed by an increasing number of startups, with many enabling new more effective and sustainable pathways for returned products to be sold again whilst conserving product value.

Design/methodology/approach
By adopting an engaged research approach involving close dialogue with retailers as well as technology and returns service providers, this paper explores the implications of adopting these innovations and the outcomes for retailers and suppliers, employees, and consumers. Using the lens of the retail technology adoption framework by Shankar et al. (2021), this paper investigates how innovation in technology and process can enable alternative pathways for consumer product returns. Some offer added value to consumers, and many reduce waste and allow retailers to conserve the value of returned products.

Findings
Retailers increasingly take control of secondary markets to increase the retained value of returned products, shorten pathways to resale, and increase resale rates. Peer-to-peer returns, “trying whilst the courier waits,” and the returns ecosystem approach all optimize returns management, impacting both the forward and reverse logistics of retail.

Research limitations/implications
The study focused on fashion items, but offers relevance for household items, furniture, sports equipment, and other items with similar characteristics.

Originality/value
This paper suggests extending the retail technology adoption framework to include the aspect of value conservation, in addition to the existing value-adding and commoditising features. The new pathways enable retailers to address the challenges of high returns rates, financial pressure, whilst reducing environmental impact.