Retailers set to ban "serial returners," survey finds
Following Amazon's lead—and as a way to curb the high costs associated with reverse logistics processes—two-thirds of retailers say they would stop doing business with problem shoppers, ERP provider says.
Nearly two-thirds of U.S. retailers say they are considering banning shoppers who deliberately and regularly buy multiple items with the intent to return some, according to a survey released today by retail-focused enterprise resource planning (ERP) platform provider Brightpearl. The news comes as retailers prepare for the holiday peak shopping season and as many report an uptick in so-called "serial returners" over the last 12 months.
It also underscores the strain excessive returns place on the already-expensive reverse logistics process. The situation has caused some big-name brands to take action this year: LL Bean announced in February that it was ending its more than 100-year-old "no questions asked" returns policy, and in May, Amazon.com said it would begin closing the accounts of customers who request too many returns.
Following Amazon's lead, a quarter of retailers surveyed by Brightpearl said that introducing lifetime bans for problem shoppers is a necessary step to protect their margins. The survey also showed that nearly half of U.S. retailers would impose bans in order to save time and administrative resources—"an indication that chronic returns are eroding retailers' margins," according to the survey.
Among the survey's findings:
42 percent of U.S. retailers say they have seen an increase in "serial returners" over the last 12 months;
61 percent of U.S. retailers say they would ban serial returners;
64 percent of all clothing and fashion retailers, 67 percent of consumer electronics firms, and 80 percent of baby and toddler retailers say they would implement similar measures to Amazon.
The survey showed that shoppers largely agree with retailers on the issue: 58 percent said they support bans for serial returners while just 7 percent disagree with such policies. Younger shoppers—those 18- to 24-years-old—are the most likely to disagree, the survey showed.
Although the ease and popularity of online shopping has given rise to the serial returns problem, Brightpearl also found that retailers are partly to blame, noting that many do not have the right technologies in place to identify repeat offenders. Nearly 60 percent of respondents said they cannot identify—or do not know whether they can identify—who their serial returning customers are, highlighting the growing need for new technologies that can track shopper behaviors.
Complicating the matter, just 21 percent of retailers said they think banning serial returners would lead to a reduction in return rates overall—suggesting that the growing number of returns in the U.S. retail sector is a trend that is here to stay, and that demand for technology to address the issue is likely to grow as well.
"In today's consumer-led retail environment, intentional returning could spell disaster for retail business owners if they do not have visibility over regularly returning customers," Derek O'Carroll, Brightpearl CEO said in a statement. "Without this, retailers will struggle with the definition and consistent application of their returns strategies—and could face a resulting backlash from shoppers."
"Banned: A Returning Problem," surveyed 4,000 online shoppers and 200 retail decision makers to examine what retailers are doing to combat serial returners and how consumers are reacting to those decisions. The survey was conducted by Brightpearl in association with OnePoll.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.