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Retailers’ return strategies could help mitigate tariffs—if fraud and inefficiency don’t get in the way

The insight: Retailers’ return strategies play a crucial role in managing the impact of tariffs. Efficient reverse logistics processes can help maximize companies’ existing inventory and reduce buying costs—vital savings at a time when nearly every overseas order carries a minimum duty of 10%.

  • Companies that rush returned goods back into the market can reduce their purchase orders by up to 15%, Casey Chroust, COO of returns management platform Optoro, told CNBC.
  • The benefit remains even if those items aren’t in pristine condition: Over three-quarters of consumers are likely to purchase used goods—and interest is set to stay strong as tariffs make buying secondhand more appealing.

Buried by returns: Speed matters, but many retailers currently struggle to manage the rising tide of returns. These aren’t just weighing on companies’ bottom lines, but they’re also starting to clog the in-store experience as more shoppers are pushed to return items in person.

  • Total return volume will surpass the $1 trillion mark this year, per our forecast, driven by a 12.5% surge in ecommerce returns.

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