Customer Returns Management in 2025: How to Adapt Your Inventory Efficiently

Why Returns Can Disrupt Your Inventory

Customer returns are often unpredictable, but their impact is real:

• Returned items may be unsellable (damaged, used…)

• Inventory counts can become inaccurate

• Extra logistics costs

• Risk of overstock or stockouts if not managed properly

Best Practices for Handling Customer Returns

1. Set a Clear Return Policy

• Clear return deadlines

• Conditions (item condition, packaging, etc.)

• A simple process for both customers and your logistics team

2. Create a Dedicated Returns Area in Your Warehouse

• A separate space for inspecting, sorting, restocking, or discarding returned goods

• Avoid putting damaged products back into stock by mistake

3. Track Returns with Inventory Software

• Use a system that lets you track returns by item, reason, and customer

• Generate insights to identify frequently returned products

4. Analyze Return Reasons

• Was the item too small? Poor quality? Inaccurate product description?

• Use this data to improve product listings and reduce future returns

5. Reintegrate Returned Products Strategically

• Use clear statuses: resellable, repairable, discount, discard

• Make decisions based on the item’s condition and value

Tools That Make Return Management Easier

• Inventory management software (like Codstock): full traceability of returns

• WMS tools (Warehouse Management Systems): accurate logistics processing

• E-commerce platforms: automate refunds and customer updates