Radial and Two Boxes Bring Returns Management into Focus

Returns management is often treated as a necessary headache on the edge of warehouse operations. On this episode of The New Warehouse Podcast, Kevin is joined by Kyle Bertin, co-founder and CEO of Two Boxes, and Shauna Bowen, EVP and Chief Digital and Transformation Officer at Radial.

Two Boxes provides technology for processing returns inside fulfillment and distribution centers. Radial is a global 3PL serving e-commerce and B2C brands. Together, Kyle and Shauna explore why returns deserve more attention.  

Stop Treating Returns Like a Cost Center

Kyle sees a basic mindset problem in how companies approach reverse logistics. “I always say returns are just inventory that has to be managed, and it’s just a little bit more difficult to manage it.”

Returned products still have value, but that value can disappear quickly if inventory sits untouched. Kyle notes that brands cannot afford to let “20%, 30% of their inventory goes to waste in the corner of a fulfillment center somewhere.”

Speed matters even more with seasonal merchandise. Shauna says getting product identified and available for resale can directly affect what merchants recover. “The sooner we can get it back into inventory, to be counted against what’s available when you’re shopping brand.com or retailer.com, that’s extremely important to them.” 

Kyle says 75% of consumers expect a refund within three days or less.

The Land of Exceptions

Outbound fulfillment runs on repeatable processes. Return processing is different.

Kyle describes it simply: “it’s the land of exceptions.” He follows that with an observation most warehouse leaders will recognize: “And exceptions are where efficiency goes to die in warehouses.”

That is where labor productivity can unravel. Kyle suggests leaders watch the process firsthand. “I would challenge you to go out to the warehouse, watch for two hours, and look at what they’re doing, and see how many times that person has to divert from time on task?”

Shauna says guided workflows reduce that dependence on individual judgment. “Not only is it more efficient, but it’s more accurate in the disposition of what to do with the product that was returned.”

Returns Management is Becoming a Data Problem

Kyle estimates roughly $1 trillion worth of inventory is returned annually in the U.S. Returns are growing about twice as fast as e-commerce, while fraud within returns is growing roughly four times faster. Roughly 11-12% of that $1 trillion is tied to fraudulent purchases. 

That changes what merchants need from their returns operation.

Kyle believes returns “are going to have to get a lot more data-driven. More data-driven return policies and policy enforcement.” That could eventually influence refund timing, customer policies, fraud controls, supplier decisions, and even which customers receive better return terms.

Today, many brands still lack that visibility. “It is still very much a black hole for a lot of brands,” Kyle says.

For Shauna, the goal is to build before the volume arrives. “And we’ll be there ready, not on our heels, but ready to serve as needed or as anticipated.”

Key Takeaways on Returns Management

• Returns are still inventory, and delays can turn recoverable product into lost value.
• Exceptions create much of the hidden labor cost inside a returns operation.
• Getting returned inventory processed quickly can create another opportunity to sell it.
• Faster workflows matter to consumers, with 75% expecting refunds within three days.
• Better returns data can shape decisions far beyond the returns department.
• The partnership between Radial and Two Boxes is delivering measurable operational improvements.

Listen to the episode below and leave your thoughts in the comments.

Guest Information

For more information on Two Boxes, click here.

To connect with Kyle Bertin on LinkedIn, click here.

For more information on Radial, click here.

To connect with Shauna Bowen on LinkedIn, click here.

For more information about returns management, check out the podcasts below. 

629: Bringing Joy to Reverse Logistics with Happy Returns

Finding a Home for Excess 3PL Inventory

600: Creating Value in Return Processing with Maven Circular