ParcelLab has launched an artificial intelligence (AI)-powered tool that helps retailers predict and mitigate the financial impact of returns.
By estimating parcels moving into retailer warehouses, the new ParcelLab Returns Forecast AI helps retailers better plan warehouse resources, reduce processing times and lower operational costs, purchasing The post-experience software provider said in a press release on Tuesday (June 25).
The introduction of the tool comes at a time when retailers are dealing with an increasing number of returned parcels, ParcelLab founder and CEO Tobias Buxheide said in the release.
“With ParcelLab's return prediction AI, we're empowering warehouse managers and logistics experts to turn this challenge into a business opportunity with a tool that allows them to see patterns and measure percentage errors. can set themselves up to do,” Buckheide said.
The tool provides data-driven AI insights that eliminate the need for manual inbound forecasting processes typically used by warehouse managers and logistics specialists, according to the release.
It incorporates peak seasonal and historical data patterns into its forecasts, providing greater visibility into returns, the release said.
Retailers can use their Predictive Returns Analytics report to avoid over- or understaffing, improve revenue forecasting and planning by predicting return volumes, and release Understanding the reasons for returns can reduce future returns.
Returns Forecast AI is part of parcelLab Retain, parcelLab's post-purchase platform that allows retailers to register their returns, create a label or QR code, track returns online and receive proactive communications. .
“By optimizing the returns process, retailers can significantly reduce associated costs, increase profit margins and improve overall financial health,” the company said in the release.
ParcelLab launched Retain in August 2023, saying the new product is supported by the company's existing infrastructure and that retailers adopting the product have seen increased customer retention and reduced profitability.
PYMNTS Intelligence found that 33.4% of US consumers consider online returns to be a very or very important shopping feature offered by retailers. In addition, according to the “2023 Global Digital Shopping Index: US Edition” by PYMNTS Intelligence and Cybersource, another 1.6% of consumers say it is the most important shopping feature.