Dropit, a retail technology company that layers AI into existing fulfilment systems for a smarter retail ecosystem, has introduced Smart Returns.
The RetailTech 50 firm’s AI-powered solution simplifies returns management by integrating with retailers’ existing systems. It uses real-time data to determine the most efficient return location for each item, enabling retailers to maximise the value of every return.
Returns have long been a costly, resource-intensive and wasteful aspect of the retail industry. Short seasons, extended return windows and a one-size-fits-all return path often result in missed sales opportunities.
For every billion dollars of sales, returns cost retailers a staggering 165 million dollars, with yearly returns totals having increased by more than 500 billion dollars between 2019 and 2022.
For retailers, this translates to significant profitability concerns, with suboptimal returns processes leading to inventory imbalances, costly logistic expenses, unnecessary markdowns and environmental waste.
Dropit says that its Smart Returns allows retailers to harness AI-powered technology to simplify and optimise return management. Unlike traditional approaches, Smart Returns combines advanced rules-based decision making with machine learning, enabling the system to leverage historical and real-time data to power intelligent, dynamic returns decisions.
Smart Returns integrates with existing inventory, warehouse and order management systems to consolidate information and make smarter decisions. It uses diverse first and third-party data to determine the best location for every return – saving retailers time and money.
“At Dropit, we believe in revolutionising the retail industry by bridging the gap between online and offline channels,” said Karin Cabili, Dropit founder and CEO.
“With Smart Returns, we’re taking a step further towards unifying inventories and optimizing operations. By using AI to intelligently route returns based on real-time data, retailers can achieve better inventory balance, reduce unnecessary markdowns, and enhance their overall profitability.”