Returns Tuesday: The Ultimate Reverse Logistics Challenge

Black Friday and Cyber Monday have long been retail juggernauts, driving billions in sales as consumers rush to snag discounted items.

What follows these shopping sprees is a lesser-known phenomenon: Returns Tuesday.

This is the day when many shoppers send back items they regret purchasing, creating logistical headaches for retailers.

The sheer volume of returns during this period highlights the growing importance of reverse logistics – the process of managing returns efficiently while maintaining customer satisfaction.

The cost of convenience

Data reveals the scale of the returns issue; nearly one in three shoppers return items bought during Black Friday and Cyber Monday.

In 2023, returns volumes surged by 145% after the shopping weekend, with the majority of items expected back at warehouses on December 10. These volumes put immense pressure on supply chains, as retailers must act quickly to inspect, restock or resell returned goods.

Ben Balfour, Managing Director of Advanced Supply Chain, explains the stakes: “If these products are sitting in warehouses uninspected, they aren’t on sale. This means retailers are losing shopping days and revenue.”

The Christmas countdown makes every day critical for maintaining sales momentum.

To handle these returns effectively, retailers are relying on data-driven insights. Understanding why items are sent back – whether due to sizing issues, unclear product descriptions or shipping delays – can help brands make necessary adjustments.

Marko Kiers, Chief Commercial Officer at ReBound Returns, adds: “By combining digital returns data with thorough physical checks, retailers can provide refunds in a short timeframe, improving consumer satisfaction while safeguarding against returns fraud.”

Paid returns: A growing trend

The retail industry is increasingly shifting away from free returns, a once-standard offering.

In 2023, 43% of UK returns after Black Friday and Cyber Monday were paid for by customers. High-profile retailers like H&M, Zara and Boohoo now charge small fees for postal returns unless items are faulty.

Al Gerrie, CEO of ZigZag, sees this as a positive step: “Shoppers are willing to pay for returns, allowing retailers to recoup some of the losses returns bring.”

However, he also notes a shift in consumer behaviour, with more people opting for lockers and home collections. Locker use, in particular, increased by 207% during Black Friday week in 2022 compared with the previous year, reflecting changing preferences.

Despite this trend, a smooth and transparent returns process remains key to customer loyalty.

According to ZigZag, 92% of consumers say they would shop again if the returns process is easy. This highlights the need for retailers to balance cost recovery with customer satisfaction.

Social commerce adds complexity

The rise of social commerce, particularly through platforms like TikTok Shop, adds another layer of complexity to reverse logistics.

Research shows that 19% of UK shoppers plan to use TikTok for holiday purchases, but these sales channels demand seamless integration across inventory management, order fulfilment, and returns processing.

“As more consumers start shopping on social media, it adds another layer of logistical complexity,” continues Marko.

Retailers must invest in real-time supply chain visibility to manage the fluctuating demand driven by social commerce.

Returns management is also a crucial part of the broader customer journey. Extending return windows, for example, can significantly improve customer experience with minimal disruption to logistics.

As Marko points out: “Most people expect a returns window of at least 30 days. Rather than reducing returns windows, retailers can extend them, only marginally affecting logistics but significantly boosting customer experience.”

Streamlined digital return portals, clear policies and accurate data analysis are essential for managing returns efficiently. Grading systems can also help warehouses process items quickly, avoiding bottlenecks during the peak returns period.

“Having grading rates creates a framework for quality checking returned items and quickly deciding what needs to happen to a product to maximise its value,” Ben explains. This approach reduces margin dilution and ensures returned goods are processed and resold promptly.

Retailers are also exploring sustainable reverse logistics to enhance brand reputation. Integrating eco-friendly practices into returns management can appeal to environmentally conscious consumers while reducing waste.

Returns Tuesday is a stark reminder that the real challenge of Black Friday and Cyber Monday lies not in making sales but in managing what comes back. 

By addressing returns with the same strategic focus as sales, retailers can navigate this logistical challenge while fostering customer loyalty.

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