Strategies to Convert Returns Management From a Drain to a Profit Center

Make your policy visible. Include your company's returns policy on all outbound packages that you send, Martinez said, as well as prominently display it on your website. Then run tests to find the optimum places to post this information — i.e., which creates the least amount of returns.

Determine a balance between customer satisfaction and profitability. While very few retailers are currently making money off of returns, you can build customer loyalty with a liberal returns policy. Of course, that may mean eating some more of the costs yourself.