No brand can afford to ignore returns management—at least not anymore.
According to NRF (National Retail Federation), the cost of retail returns has increased over the years—from $309 billion in 2019 to $890 billion in 2024. The same is true for the annual return rate that jumped from 8.1% in 2019 to 16.9% in 2024.
A high return rate immediately builds pressure on your bottom line, triggering a chain reaction: tight cash flow, overload in reverse logistics, customer service escalations.
The impact intensifies during major sales and holiday seasons, when warehouse staffing surges by 49% and call center hires increase by 44% just to handle the onslaught of returns and customer inquiries.
This is why returns management becomes the key for automating the returns process, enabling in-store returns and carrier pickup, nudging exchange opt-ins.
Finding the solution sounds simple, but finding the right partner is not. That’s why we created this guide- to help you choose the returns management software that fits your brand best.
10 Key Questions to Ask Before Choosing Your Returns Management Software
Smart questions lead to smarter decisions. Let’s start with the top 10.
1. How Easily Can the Software Integrate with Our Existing Systems?
Your tech stack is the backbone of your operations. A returns management software that doesn’t easily plug into your existing systems causes a domino effect: inventory blind spots, stuck parcels, and delays in refunds.
Therefore, before selecting the right platform, consider if it natively integrates with your storefronts, WMS, OMS, ERPs, payment gateways, CRM tool, and your carrier partners. This saves you from reworking your order, shipment, and inventory flows — and helps avoid silos and visibility gaps.
For example, when your customers initiate a return, the software instantly generates a pickup request or a return label. This streamlines the process for better customer experience and reduces the possibility of errors from manual oversight.
Action tips:
- Check the integrations page to see which platforms and tools are supported.
- Ask about the set-up process, latency, downtime record, API/webhook offerings.
- Avoid platforms without robust and fast custom integration support.
2. Does It Support a Wide Range of Return Methods (In-store, Pickup, Mail-in)?
Cross-brand partnerships, no-box/no-label returns, in-store drop-offs, and mail-ins are blending into a delicious cocktail—one that many retailers serve to win customer loyalty and make returns effortless.
Since 67% of customers consider one negative return experience reason enough to abandon a brand, return flexibility becomes key to retaining them. Different returns management software handle return methods differently. Some focus on concierge style returns. Some nail in-store returns and instant refunds. Some are pro at scheduling pickups with carriers and consolidating returns.
Action tips: No matter which return methods you offer, look out for the following non-negotiables-
- A self-serve portal where customers can easily choose their preferred return method.
- Display the nearest drop-off point or parcel locker, complete with geo-coordinates, to make returns more convenient.
- Automatic generation of shipping labels or QR codes for hassle-free mail-ins.
- Pre-built connections with multiple logistics partners and in-store systems like your POS software.
- Smart order routing to your warehouse or fulfillment center with intelligent carrier allocation.
3. Does the Software Handle Flexible and Customizable Return Policies?
Your return policy is often your brand’s true first impression as 80% of shoppers check it before deciding to buy. A friendly return policy encourages customers to make a confident purchase.
Whether you choose to offer free returns, issue refunds instantly, provide a flexible return window or charge a restocking fee, return management software can automatically enforce these policies. They cut out manual approvals and the need for emails and support calls.
Though most solutions let you automate your return policy through basic configurations, what retailers really need is true customization.
Action Tips: Evaluate if your preferred solution can-
- Personalize your policy such as setting up return restrictions, promoting gift-cards for refunds.
- Enable SKU exceptions with auto-approval/rejection.
- Adjust return duration (accommodating big sales/promotions) and prioritize rules.
- Offer nested return reasons, image validation, and customer’s note.
4. Can It Provide Real-Time Tracking and Notifications for Returns?
Customers crave real-time tracking and notifications, not just for the orders placed, but for returns too. With 84% of shoppers expecting faster refunds, many feel uneasy until they can see where their parcel is and when their refund will arrive. Therefore, the best returns management solution always proactively notify customers.
Like your customers, you’d also want to know where the return shipment is and make strategic calls like when to trigger refunds. For example, issue a refund at the time of the first scan or when the package reaches your warehouse.
Action Tips: A checklist for have a solid notification and tracking system:
- Both tracking API and webhook to enable live tracking updates with timestamps.
- Multichannel notifications with pre-built templates for easy set-up.
- Automated messages triggered at key milestones.
- Proactive exception alerts with standardized statuses and a central dashboard.
- Pre-built integrations with communication gateways and CRMs.
- Whitelabeled and branded tracking portal.
5. How Does the Software Improve Customer Experience Post-Purchase?
The post-purchase experience isn’t over once customers hit “Buy.” It’s just as critical when they hit “Return Your Order”. Many brand owners underestimate how far they fall short of customer expectations—even in critical areas like returns and delivery updates. According to a Deloitte study, 78% of retailers believe they offer proactive delivery communication, yet only 59% of customers feel the same.
Source: Deloitte Digital B2C Commerce Survey, September-October 2023
Personalization forms the core of any post-purchase strategy built to improve customer experience. Building return policies specific to customer segmentation plays a big role in rewarding your loyal customers or bringing more into the fold, and deter unwanted behaviour like bracketing and other frauds. Astonishingly, 87% of customers over-order apparels and return those they don’t want, a nightmare for apparel brands.
The spread of LLM based models and GenAI has made AI-enabled personalization accessible and easy to implement.
Action Tips: Find out if the returns management platform offers-
- AI-enabled customer segmentation to tailor return policies.
- LLM-generated hyper-personalized and contextualized emails at scale.
- AI detector for preventing frauds or safeguards for return policy misuse.
- Proactive ETAs, language localization, and a branded return experience.
6. Can it Encourage Exchanges Over Refunds?
Exchanges aren’t just customer-friendly—they’re revenue-friendly. 60% of online customers prefer an exchange or store credit over a direct refund. This opens up the opportunity to nudge them toward alternatives that keep revenue in-house.
Your returns software should allow customers to browse an open catalog or a custom one for exchanges beyond simple size or color swaps. But here's the catch: not all platforms sync accurately with your live inventory or SKU logic, leading to mismatch issues and stockouts.
Exchanges can be bundled with upsells. A smart RMA flow can turn a return into an upgrade, not a loss. Likewise, while automating refunds sounds appealing, high-value items often require manual checks to prevent errors and fraud.
Action Tips: Look for the feasibility to-
- Set up multiple refund formats including store-credit, gift cards, discount codes.
- Trigger refunds at your preferred milestone.
- Enable site-wide exchanges along with automated price variance reconciliation.
- Combine manual refund checks with smart retries on transaction failure.
7. How Scalable Is the Returns Management System?
A returns management software is only as powerful as its ability to scale. While automation gets you started, it’s scalability that supports your growth. It should be able to keep up with your rising volume and operational complexity even 5 or 10 years down the line.
Action Tips: There are four main components to scalability and your returns management software should have them all to future proof your expansion-
- Handle surges like peak season sales or promotions without performance slowdown or outages.
- Fulfill customization needs, expand features quarterly, have faster product deployment.
- Support expansion to newer geographies and set up new currencies, payments, carriers with ease.
- Enable multiple users, secure log-ins; have robust data security measures, decentralized team access, and custom setups.
8. Does It Offer Advanced Reporting and Analytics?
As 68% of retailers plan to upgrade their return capabilities, most seek ways to lower their return rate. Imagine having access to customers’ return patterns, return reasons, total returns and exchange volume, returns-to-exchange ratios. Better yet, having unprecedented visibility, automated reports, customizable dashboards, and notifications for important metrics.
You can mine the data to easily identify bottlenecks and revenue leaks, plan for seasonal demands, detect recurring customer behaviors, create safeguards, check for inventory issues, redesign your exchange campaigns, and upgrade customer experience.
Action Tips:
- Look for platforms that give you a comprehensive breakdown of the causes and trends observed in your return data.
- Analyze based on SKU, customer segments, category, or tags on an interactive dashboard.
- Check the availability of predictive models that forecast return volumes or detect fraud patterns.
9. What Kind of Customer Support Does the Software Provider Offer?
If you are worried about not having active and timely customer support, you’re right to do so. Support right from the moment you plan to onboard with a platform pays well, especially in your product adoption, usage knowledge, and training. Aligning with your business objectives and building a successful plan requires successful cooperation for customer support teams.
A recent Bain survey found that only 65% of customers felt their post-sales needs were moderately or adequately addressed. You wouldn’t want to be in that position. Therefore, choose a returns management software that offers support across key areas: product deployment, technical implementation, integration needs, support ticket resolution, and product onboarding.
Action Tips:
- Look for live support via emails, calls, or chat.
- Ensure you get help articles and self-learning materials.
- Confirm that responsive support isn’t paywalled behind advanced subscriptions.
10. What Are the Costs and Pricing Models?
Most return management solutions offer pricing models in two ways: tiered systems or custom pricing. The one you choose would depend on your return volume and the features you opt for.
For example, if you are a Shopify start-up with 100 return orders, choosing a basic subscription plan or free plan like ClickPost’s Shopify Returns App would mostly suffice. But, if you are a fast-scaling business with a steady increase in returns, you may want to consider a fully automated system to derive ROI.
The tiered model allows you to browse different subscription bundles to choose the right one. But, with custom or granular pricing you can opt for features and pay as you use them.
Action Tips:
- Enquire about any charges if returns exceed your plan limit.
- Browse customer reviews to find if there are any hidden fees.
- Clarify if any features are add-ons, as this might incur more charges.
Ready to transform your returns management?
Book a demo with ClickPost and discover how we can streamline your operations today.
Losing revenue while handling customer escalations is one of the fastest ways to curb growth. ClickPost has helped many brands tackle this challenge with its automated returns and exchange suite. It optimizes the returns experience for customers by offering a branded portal configured with personalized policies. Its proactive exchange nudges, gift‑card/store‑credit as refund modes, site‑wide exchange flexibility, and deep analytics convert returns friction into a revenue lever.
ClickPost Customer Story
Here’s what Anshu Kumar, Logistics and Customer Delight Lead at Comet, a fast growing D2C footwear company had to say about ClickPost’s impact in returns management:
Final Takeaway
Returns don't just impact your margins—it erodes long-term customer trust. This is why pairing with the right solution partner is so important, both for your ROI and your customer retention strategy. We have highlighted many must-haves but integrating with returns management solutions like ClickPost is the fastest way to boost customer experience and ensure hassle-free returns.