Question: What’s the ecommerce industry’s least favorite time of the year? Easy, post-peak returns. Products flood back into warehouses, profits shrink, and operational complexity spikes. But what if that didn’t have to be the story anymore?
Smart brands are reimagining returns as a growth engine. When powered by technology, data, and fulfillment integration, returns can drive retention, loyalty, and even revenue.
The key is turning reverse logistics into a connected, insight-driven process that transforms what happens after a purchase into a competitive advantage.
Returns don’t have to mean losses
From 2023 to 2024, ecommerce returns increased 39.2%, totaling $362 billion in merchandise. And that doesn’t even account for in-store returns.
Returns are expensive for brands, but they don’t have to be a loss. With the right systems in place, businesses can capture value through exchanges, resales, and smart restocking strategies.
In fact, the shift toward intelligent reverse logistics is one of the most promising areas in ecommerce optimization today. When returns workflows are automated, data-driven, and flexible, they can reduce refund rates, keep customers in the ecosystem, and even increase profit per return.
Just as omnichannel fulfillment revolutionized delivery, “omnichannel returns” are now doing the same for post-purchase experiences.
The post-peak returns surge
Once the rush of peak season subsides, the second wave begins: the flurry of returns. January alone often brings the highest return volumes of the year as shoppers send back gifts, exchanges, and impulse buys. For fulfillment teams, that means shifting quickly from outbound efficiency to inbound management. Without the right systems, that transition can strain capacity, create bottlenecks, and eat into profits. But for brands prepared with integrated reverse logistics, the post-peak period becomes a chance to recover value, reconnect with customers, and reset for the year ahead.
The problem with traditional returns
The typical post-purchase process is still built on outdated, manual workflows. In many ways, it’s designed only to limit loss rather than create opportunity.
Common challenges include:
- Siloed operations: Returns managed separately from fulfillment and inventory slow the process and create blind spots.
- Refund-only options: Limiting customers to refunds misses chances for exchanges or store credit that retain revenue.
- Lack of visibility: Poor tracking and communication during the return process erode trust and loyalty.
- Manual data collection: Without automation, it’s impossible to analyze why returns happen or how to prevent them.
The result? Increased operational costs, lost sales, and frustrated customers who might not come back.
Turning returns into retention
Brands that reimagine returns as a customer experience opportunity can produce measurable results. It’s about giving shoppers a seamless, transparent return process that makes them more likely to repurchase. As the final touchpoint in the buyer’s journey, how returns are handled can determine whether customers remember your brand fondly or end up walking away.
Key strategies for turning returns into customer loyalty include:
- Offering exchanges instead of refunds: Let customers easily swap for a different item, color, or size.
- Incentivizing store credit: Offer small bonuses (like extra credit value) to retain revenue.
- Using AI for recommendations: Suggest alternate items based on return data to boost re-purchase rates.
- Automating workflows: Reduce lag time between return initiation, approval, and refund or restock.
- Integrating fulfillment and returns data: Real-time visibility keeps both customers and teams aligned.
The AI advantage in returns
The next generation of returns uses “intelligence.” Artificial intelligence (AI) is already transforming how brands predict, process, and profit from returns.
For example, AI-driven systems can automatically identify common return reasons, forecast return volumes, and suggest corrective actions, whether that’s improving product descriptions or flagging a supplier issue.
Moreover, AI agents can engage directly with customers to facilitate exchanges, resolve issues, and recommend replacements. In fact, returns platform Redo found a 51% increase in retained revenue through AI agents.
Redo + Kase: Returns redefined
That’s why Kase has partnered with Redo, a leader in AI-driven post-purchase experiences, to integrate smarter returns directly into our fulfillment ecosystem.
Redo’s platform automates claims, exchanges, and warranties, turning what was once a manual, reactive process into a seamless, proactive customer experience. Together, Kase and Redo make it possible for brands to:
- Centralize orders, returns, claims, and warranties
- Capture revenue that would otherwise be lost to refunds
- Deliver real-time visibility into every stage of the returns process
- Streamline operational workflows from initiation to inspection
With Redo’s AI capabilities and Kase’s end-to-end fulfillment, brands can now handle the entire returns lifecycle faster, smarter, and more profitably than ever before.
Reframing reverse logistics for growth
Returns will never disappear, but their impact on your bottom line can change, especially in the post-peak season. When fulfillment, reverse logistics, and AI work in sync, every return becomes a chance to build loyalty, retain revenue, and refine the customer experience.
Instead of a profit drain, returns become a strategic advantage that helps brands grow stronger with every interaction.
Ready to transform your returns? Partner with Kase to connect your fulfillment operations with smarter reverse logistics. With Redo, we’ll help you turn every return into an opportunity for loyalty and growth.
