Nelly.com’s game-
changing returns strategy

What if your returns process could actually improve your profits?

That’s exactly what Nelly.com has done—and their approach has transformed the way they think about returns.

Here’s how they did it, and how you can do the same.

1. Turn returns into revenue

Returns don’t have to be a cost center. Nelly quickly realized that some returns add value, while others drain resources.

For example, a customer buying two different pairs of jeans to compare texture and fit adds value. They get to decide what feels best at home.

But size-related returns, where customers buy multiple sizes just to try them on, aren’t necessary. Nelly knew this was a problem they could solve.

By improving product descriptions, adding clearer sizing guides, and enhancing images, Nelly made it easier for customers to get the right size from the start. They reduced unnecessary returns while keeping customers happy.

Tip: Focus on which returns are adding value for your customers, and which aren’t. Start by reducing the returns that stem from unclear product information.

2. Data is your secret weapon

At Nelly, data is everything.

They track returns down to the smallest details, like the material and design of each product. This allows them to spot patterns and take action.

For instance, if a product has a high return rate, they either redesign it or remove it from the offering. In one case, a customer bought five pairs of shorts because the images didn’t show whether the shorts had belt loops.

This was an avoidable “bad return,” one that could have been prevented with better images. Nelly now has photography guidelines that are constantly updated based on data from returns.

Tip: Use return data to improve product descriptions and designs. Focus on the details that will prevent unnecessary returns in the future.

3. Appoint a Returns Manager to take charge

Returns can’t be an afterthought. Nelly knew they needed a dedicated person to own the process.

That’s why they hired a Return Manager. This role has become crucial in analyzing return patterns and making improvements. The Return Manager works closely with other departments to ensure returns are optimized, and no opportunity for improvement is missed.

Tip: Assign someone in your organization to be responsible for the returns process. They should track data, drive change, and ensure returns are seen as an opportunity, not just a logistical hassle.

4. Block unsustainable return behaviors

What do you do when customers return almost everything they buy?

Nelly identified a small group of customers with unsustainable return habits. For example, one customer was buying items just to post photos on social media, returning 95% of their purchases.

Nelly put limits in place to block these behaviors while protecting the majority of their customers, who return items for legitimate reasons.

Tip: Set parameters to block unsustainable return behaviors without impacting overall customer satisfaction.

5. Use technology to boost efficiency

Technology is your best friend when it comes to returns.

Nelly adopted Inretrn’s digital platform, which transformed their entire process. With the implementation of QR codes for returns, they can now reject outdated returns before they even hit the warehouse. But that’s just the beginning.

Inretrn’s platform also ensures that every product is routed to the correct destination in the shortest, most cost-efficient way. This means products aren’t just coming back—they’re going exactly where they need to be, fast and efficiently.

Returns handling at the warehouse is smoother and faster, reducing bottlenecks and keeping operations running seamlessly. With fewer human errors and less manual intervention, customer service teams feel less pressure. They can focus on more important tasks rather than dealing with return-related issues.

The result? Less wasted time, improved warehouse productivity, reduced costs, and happier teams across the board.

Tip: Invest in technology that streamlines your returns process. A digital solution can prevent unnecessary returns from reaching your warehouse, saving time and money.

6. Optimize return shipping to cut costs

Did you know you can cut return shipping costs without inconveniencing your customers?

Nelly found that many smaller items, like tank tops, were being returned in bulky packages. By switching to smaller, more cost-effective shipping methods, they cut return shipping costs by 20%.

Customers didn’t even notice the difference.

Tip: Take a look at your return logistics. Are you overpaying for returns? Find opportunities to optimize your shipping and reduce costs.

Nelly’s return strategy delivers results

By Q2 2024, Nelly had dropped their return rate from 38% to 31.3%.

Each percentage point saved them millions, and their focus on reducing non-value-adding returns made all the difference. Their strategy has improved customer satisfaction and boosted their bottom line.

So, what could you accomplish if your returns process was as optimized as Nelly’s?

Ready to optimize your own returns process?

Nelly’s success shows that a smarter returns strategy can boost your profits. Want to see how your returns process stacks up? Download our Returns Process Checklist and take the first step toward improving efficiency and saving costs.