Retailer Community

The Hidden Cost of Manual Returns

At first glance, accepting containers manually may appear to be the simplest and least expensive way to operate a return point.

Costs and revenue

Is manual handling really the lowest-cost option?

At first glance, accepting containers manually may appear to be the simplest and least expensive way to operate a return point.

There may be little or no technology to purchase, but that does not mean the process is free.

The real cost of manual returns is often found in the day-to-day operation of the store.

Staff time

Every manual return requires staff involvement.

Depending on the process, employees may need to:

  • Check each container
  • Count the return
  • Issue the customer's refund
  • Bag and tag containers
  • Move and store full bags
  • Resolve errors or customer queries

A few minutes at a time can become significant when multiplied across hundreds of returns.

Cleaning and hygiene

Returned containers may contain residual liquid or arrive sticky or damaged.

This can create:

  • Additional cleaning
  • Spill management
  • More frequent waste-area maintenance
  • Extra demands on staff time

Storage and consumables

Manual returns still require space and materials.

Retailers may need:

  • Approved bags and tags
  • Secure storage areas
  • Space for full bags awaiting collection

As return volumes increase, these requirements can become more significant.

Errors and discrepancies

Manual processes can also increase the risk of:

  • Counting errors
  • Ineligible containers being accepted
  • Incorrect refunds
  • Differences between recorded and verified returns

These errors can create additional administration and potential financial losses.

Look at the total cost

When comparing return solutions, retailers should consider the total cost of operation, not only the initial equipment cost.

A solution with a higher upfront cost may reduce staff time, errors and other ongoing operational requirements.

Diagram breaking down the operating costs of manual handling: staff time, cleaning, storage, consumables and administration.