Marat Bolatov, founder of Native Commerce, recently shared his insights on the "hidden costs" of returns in a feature for Retail Insight Network.
In the article, he explains how generous return policies, while essential for building customer trust, have quietly evolved into a "margin killer" for modern brands by creating massive hidden expenses in logistics and labor. He discusses the primary drivers of this issue, such as sizing inconsistencies and "bracketing" behavior, and highlights that the solution isn't to make the customer experience worse, but to "discipline" internal operations.
Marat shared that by improving product data accuracy and leveraging automation to handle returns, businesses can protect their bottom line without sacrificing loyalty. He tells us that the goal is to eliminate the root causes of returns at their source, turning a strained operational process into a streamlined engine for growth.
Want to find out how to stop returns from draining your revenue and harming your margins?