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Blog | December 29, 2022 | 3 min read

How Retail Technology Can Reduce Returns

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Roy Horgan, Group SEVP Strategy at SES-imagotag, weighed in on the potential of retail technology to reduce the risk of returns over the holidays: 

As the holiday season approaches, retailers are grappling with excess inventory levels and the resulting challenges that come with managing high return volumes. In an effort to address this issue, we are seeing retailers such as J. Crew and Old Navy reevaluating their return policies in order to reduce the number of returns.

While it may seem like a cost-effective solution for retailers to reduce the volume of returns, it is important to consider the potential impact on consumers. Limitations on return policies may encourage shoppers to do more research before making a purchase and head back into stores to check out products in person.

This presents an opportunity for retailers to enhance the in-store shopping experience and provide customers with the information they need to make informed purchase decisions. Retail technology has made significant progress in improving the customer experience and offers endless potential for retailers to create a more informed shopping experience for consumers. By incorporating technology such as digital price tags, QR codes, and dynamic shelf-edge marketing into the in-store shopping experience, retailers can empower customers to access detailed product information and reduce the risk of returns.

Overall, the use of retail technology to improve the customer experience and promote more sustainable retail practices can be a win-win for both retailers and consumers. As holiday spending increases and retailers continue to manage inventory levels, we can expect to see further changes to return policies. By leveraging technology to equip customers with the information they need to make informed purchase decisions, retailers can reduce the risk of returns and create a more positive and sustainable shopping experience.

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