How to Organize Returned Products for Faster Inventory Reconciliation

Managing a high volume of customer orders and shipping can cause issues when trying to manage your returned products. If products aren’t organised properly, your inventory could be inaccurate, your warehouse could become very busy and items may not be restocked quickly. This can cause issues with order fulfillment, purchasing and customer service. Having a clear process for managing returned products will allow you to know what items you’re receiving, check their condition, update your inventory and store them correctly. A clear process will help you manage your couriers and keep your inventory accurate.

Establishing a Dedicated Returns Area

Creating a zone for your returned products will help you keep your returned items separate from your inventory. If you leave items in random spots around your warehouse it can be difficult for your employees to know which items need to be checked and added into your inventory. Creating a dedicated zone for your returned items will help your employees receive, record and sort your returned shipments. Ensure your zone has enough room for different types of products and will allow your employees to process your returned items without causing any issues for your normal warehouse processes.

Your zone should have a clear process for organising items upon delivery from your courier. You can create areas for your unopened shipments, items to be checked, approved items and damaged items. Using signs and storage containers will help your employees easily identify where to place their returned items. This will stop your items being touched unnecessarily and will help avoid any mix ups between your returned items and ready for order items.

Recording Returned Shipment Information

When receiving your returned shipments you should record some key information. This will help you match your returned items to their original sale. Your employees should note down the order number, item information, date returned, quantity and tracking information. This will help you confirm you’ve received the right items and can help spot any issues with what’s being returned. Having a consistent process for recording your returned items will help you investigate any missing items or disputes.

Using an inventory management system can help make this process easier. Your employees can look up the original order, confirm quantities and update the returned status. This can help if you’re managing small business shipping as you may have fewer staff so having a consistent paperless process can help. Having digital records will also help you see a clearer history of your returned items.

Inspecting Products Before Restocking

Before you add your returned items back into your available inventory, they should be checked. There could be issues with packaging, missing parts, wrong items and use of the product. Your employees should have a consistent process for checking your items based on the type of merchandise. For example, electronic items could be tested to ensure they work, whilst clothing could be checked for stains, missing tags and damage. This will help stop you sending unsuitable items to customers.

Based on your findings, you should add your items into your approved inventory if they’re suitable for resale. If there was damage to your merchandise you may need to repair it, make a claim with your supplier or throw it away. If your item needs to be checked further, place it into your holding zone. Adding this to your inventory system will help your employees know which items are available.

Updating Inventory Records Promptly

If you don’t update your inventory promptly you may have issues with your purchasing team, sales and fulfillment team. Your returned items may be sitting in your warehouse but not be available in your inventory. This can cause you to buy unnecessary replacements or give inaccurate information on your stock levels. Have clear processes in place to update your inventory as soon as they’ve been checked and approved. Assigning who is responsible will also help you avoid any issues.

Your inventory should show the true status of your items. Add your items into your available stock if they’re suitable for resale. If they’re damaged or incomplete they should still be in the right inventory category. If you have multiple storage areas then make sure you’re accurately adding in any transfers. Regularly comparing your physical stock with your digital stock can help identify any issues and allow your employees to fix any issues.

Coordinating Returns With Courier Services

Having a good process for managing your returned items will help you manage your couriers efficiently. Have clear processes in place for receiving your returned items, confirming tracking information and managing any unauthorised items. Giving your customers clear information on how to return items will help reduce your incorrect labelling. Using tracking information will also help your employees know when to expect your returns and will give you enough space to process the items.

Take a look at your return shipping process and identify any unnecessary delays. Having pre-paid return labels, clear packaging instructions and collection instructions can help make things easier for your customers and employees. If you’re receiving a high volume of returns then taking a look at your couriers can help. Identify which couriers are giving you accurate tracking information and good collection options. Having a good process in place will help get your returned items into your inventory quicker.

Monitoring Returns Processing Performance

Regularly reviewing your performance will help you identify any issues with your returned item processes. Tracking the average time taken to check your items, number of outstanding returns, inventory issues and percentage of items that were able to be added into your available stock can help. This will help you identify if you’re experiencing delays due to lack of staff, poor recording, busy warehouse or needing to check items. Then your managers can make changes based on your real needs.

Training your employees will help you have a consistent process. Give your employees clear instructions on how to record shipments, check items, update inventory and report any issues. This will help you have a consistent process and give you more reliable inventory. If you’re regularly reviewing your processes then you’ll have more accurate stock, organised warehouse and less admin for customer returns.

Conclusion

Having a good process for organising your returned items will help you. Having clear processes for receiving, recording, checking and updating your inventory will help you reconcile your items quicker. Having dedicated zones for your returned items and managing your warehouse with your couriers will help. Reviewing your performance and training your employees will help you have an efficient process. This will help your company keep accurate stock records, get your resale items back quicker and manage your customer returns without affecting your normal shipping.

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