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"70% of Returns Skip the Label" - The Warehouse Still Has No Cost Figure

Writer: Sophia Hernandez
Sophia Hernandez
16 hours ago
3 min read

A return does not fail at the customer's door. It fails when the warehouse cannot see the parcel until it arrives, and the dock is already committed to outbound. Retailers estimate that 15.8% of annual sales will be returned in 2025, or $849.9 billion, the National Retail Federation and Happy Returns said in the 2025 Retail Returns Landscape report. Online sales are estimated at 19.3%. The rate was 16.9% in 2024, or $890 billion. Apparel sits at the high end of that load. The parcel still has to be known before it hits the building.


The First Mile Was the Blind Spot

Allbirds wanted a cleaner returns process without dropping the customer experience or the sustainability standard the brand sells on. The Shopify store was already the commerce platform. What it did not give the supply chain team was visibility of returns in transit, a forecast the warehouse could plan against, or a simpler step for the customer. In a case submitted to The Supply Chainer, Allbirds integrated its Shopify returns portal, powered by Loop, with ReBound's returns system. ReBound took the first mile from the customer to its hub and consolidated parcels before they reached the warehouse. The published case also lists early inspection of returned parcels, to catch mistakes and fraud. The stated result was visibility across the journey, earlier notice of what was coming, and better data for warehouse planning.


ReBound added QR-code returns next to printed Royal Mail labels, so the customer did not have to print. Up to 70% of Allbirds returns used the QR code. That is the only number in the file. It is a convenience and paper figure. It is not a cost, a dock-time or a labor figure.


Stef Elliott, senior supply chain manager at Allbirds UK, said: "Shopify works really well for us, and the integration between Shopify and Loop/ReBound is very good. The main benefit with ReBound now is that they own the first mile from the customer to their hub, and then consolidate the parcels for us. It's easy to keep track of the whole chain, and give clear instructions to our warehouse teams - it's a smooth process and it works well for us." On the QR code she said: "We implemented the QR code last year with ReBound's help, and that's had a huge impact on our customer experience. Before, customers had to have a printer at home, and it wasn't a very good experience for them. Now, customers really like having the choice, and that's been really helpful." The submission titled her head of supply chain. The published ReBound case titles her senior supply chain manager.


Allbirds integrated its Shopify returns portal, powered by Loop, with ReBound's returns system
Allbirds integrated its Shopify returns portal, powered by Loop, with ReBound's returns system

The Warehouse Still Competes With Itself

The pressure that number does not answer is already on the record. In The Supply Chainer's piece on fashion returns, inbound reverse logistics competes with outbound for the same labor, doors and storage. Pablo Ciano, chief executive of DHL eCommerce, said in industry analysis cited there: "Returns are now an unavoidable expectation." Katherine Cullen, vice president of industry and consumer insights at the National Retail Federation, said returns are no longer the end of the transaction.


A consolidated inbound does not remove that contest. It moves the notice earlier. Columbia ran a similar first mile with ReBound, on Narvar rather than Loop, and used the consolidation and pre-alert to plan the returns department. Tanguy Honore, quoted on ReBound's Columbia case, said: "Our return department in the warehouse is super happy with the packing and information received from ReBound. It's way easier for them to plan the resources at the warehouse and to manage the bulk of returns that are coming back." His title is not in the case. Neither file says how many hours earlier the notice arrived, or what share of the original item value the return still consumed.


One Metric Is Not a Proof of Impact

The query that produced the Allbirds case asked for efficiency, cost and return on investment. The file that came back has a client name, a first-mile change, a 70% QR rate and a quote on warehouse instructions. It does not have a savings figure, a processing-time cut, or a headcount change. Ella Broadbent, who sent it, said a second case from Paxon would follow. Until that file, or a number Allbirds has not given, the operational claim stops at the hub: ReBound owns the first mile, the parcels are consolidated, and the warehouse can be told what is coming. It has not shown what that notice was worth.


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The Supply Chainer's editorial team of experienced writers, editors and industry experts collaborates to produce high-quality content that tackles the dynamic challenges of the global supply chain landscape. We are dedicated to building a vibrant community of supply chain professionals while promoting knowledge sharing and industry innovation. ​ We don’t maintain social media accounts as a matter of principle. To find our editorials on social search: "The Supply Chainer"

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