2. Are you sending all returns to a central warehouse, even when it’s unnecessary?

Why ship every return to a central warehouse when you don’t have to? Let’s say a customer returns a pair of jeans with a broken zipper. Does that really need to go to the main warehouse first, only to be sent out again for repairs?

Sending returns on a detour is a waste of time and money—both for you and your customers. A smarter way? Send items directly where they need to go, whether that’s a repair hub, recycling center, or another specific location. This way, the jeans are repaired faster, costs are lower, and the customer gets their item back quicker.

What to do about it:
Implement intelligent product routing. Make sure returns go straight to the right destination—whether it’s repairs, refurbishment, or resale—without unnecessary stops. Less handling means lower costs, quicker resolutions, and happier customers.

3. Are your international returns taking too long and costing too much?

Selling globally is great, but if you’re making all international returns go back to a central warehouse—especially across borders—you’re setting yourself (and your customers) up for frustration. Think about it: A customer in the U.S. returns a product, and it has to go all the way back to Europe before it’s processed. The costs add up, and the wait times are painful.

Real-life example:
Take Nudie Jeans, for example. They’ve handled over 4,500 pairs of jeans in Australia alone, avoiding the cost and environmental impact of shipping each pair back to their central warehouse in Europe. Instead, they’ve set up local repair hubs, saving on shipping costs, speeding up the process, and offering a better customer experience.

What to do about it:
Consider setting up regional return hubs or working with partners that can handle local returns. You’ll cut down on costs and give your customers a much faster, smoother experience. Or, bundle return shipments in bulk to save on customs fees and shipping costs, while still providing a local presence.

4. Are you overpaying for return freight?

Are you still paying full freight costs for returns when customers only send back part of their order? That’s an unnecessary expense. If a customer returns two out of five items, you shouldn’t be paying the same freight as if they returned the whole order.

What to do about it:
Automate your freight sizing based on the volume of the returned items. This way, when a customer returns half the order, you’re only paying half the freight costs. It’s an easy win for reducing expenses without compromising customer satisfaction.

5. Are you struggling to handle claims outside the warranty period or without an order number?

Ever tried handling a claim when the customer doesn’t have an order number or is outside the warranty period? It’s a nightmare—both for you and the customer. But if you make the process too rigid, you’re risking customer satisfaction. Make it too loose, and your ERP system could be a mess.

Why it matters:
A smooth returns process isn’t just about logistics—it’s about building long-term trust. When you make it easy for customers to file claims, they’re more likely to stay loyal. A bad returns experience? It’ll send them straight to a competitor.

What to do about it:
You need a system that can handle these edge cases without breaking the rules. Automate the process so that even without an order number or when outside the warranty period, you can still create an order in the system, process the claim, and keep things compliant. Better yet, offer fast refunds when possible. Your team stays efficient, your customers stay happy, and your books stay clean.

Conclusion

Your returns process isn’t just about logistics—it’s a critical part of keeping your customers loyal. Fixing these five issues will improve your customer experience and help you boost retention, reduce churn, and increase long-term customer value.

Want to know how Nordic Nest reduced their lead times and cut 7,000 hours of manual labor annually? Read the case here!