Reducing Returns Starts in the Warehouse — Not at Customer Service

The returns problem doesn't start where you think

When the return rate rises, most companies look at the product ("does it meet expectations?"), the product page ("are the photos accurate?") or the customer ("are they deliberately over-ordering?").

But one cause is often overlooked: the warehouse.

Research in the e-commerce sector shows that 20-30% of all returns are caused by fulfillment errors. The wrong product. The wrong size. The wrong quantity. The customer doesn't get what was ordered — and sends it back.

What does a return cost?

The direct costs of a return are higher than most companies realize:

With 500 orders per month and a 2% error rate, that's 10 unnecessary returns. Cost: €180 - €580 per month, or €2,160 - €6,960 per year.

And that doesn't even count the lost customers.

The 5 most common picking errors that lead to returns

1. Wrong product picked

The most obvious error: a different product than ordered. This happens especially with products that look alike — similar packaging, similar names, or product numbers that differ by a single digit.

House of Beers recognized this problem: with thousands of beer varieties, labels and packaging are sometimes barely distinguishable. One wrong beer and the customer receives an IPA instead of a Tripel.

2. Wrong quantity

The customer orders 3 units, the employee picks 2. Or 4. This goes wrong especially with bulk items and orders containing multiple units of the same product.

3. Wrong variant

The right product, but the wrong size, color, or flavor. This is particularly frustrating for customers because it shows the company isn't working carefully.

4. Product damaged due to haste

Under time pressure, products are handled less carefully. Damaged products are sometimes shipped anyway — and come back as returns.

5. Swapped orders

Two orders are picked at the same time and the products end up in the wrong box. Both customers receive a wrong order.

How order picking software prevents returns

The common thread in picking errors is the lack of verification. The employee grabs a product and relies on their own judgment. Only when the customer complains does the error come to light.

Order picking software with barcode scanning breaks this pattern:

Verification at the moment of picking

The employee scans the product's barcode. The system instantly checks whether it's the right product, in the right variant and the right quantity. Wrong product? Immediate warning. No chance of packing the wrong item.

Step-by-step guidance

The system shows the exact warehouse location for each product. The employee is guided to the right shelf, sees which product to pick, and scans to confirm. No room for interpretation.

Quantities are enforced

If the order requires 3 units, the employee must scan 3 times. The system only proceeds once the correct quantity has been reached.

Results from real-world practice

The impact is measurable:

• Kerstdiner.nl reduced picking errors by 84% — from 25 to 4 errors across 18,432 picks
• House of Beers completely eliminated wrong deliveries thanks to barcode verification

An 84% reduction in picking errors means a proportional drop in fulfillment-related returns. In our example calculation: from 10 to fewer than 2 unnecessary returns per month.

Additional measures to reduce returns

Besides better order picking, you can further reduce returns with:

Photo verification at packing

Take a photo of the contents before the box is closed. This provides evidence in disputes and enforces diligence.

Clear product information on your online store

Make sure dimensions, colors, and specifications are accurate. The better the expectations are set, the fewer disappointments.

Inventory accuracy

With real-time inventory management you prevent selling products that are no longer in stock. No workarounds, no substitute products, no returns.

The ROI of better order picking

The calculation is simple:

• Current costs: Number of picking errors × average return costs × 12 months
• After digitization: The same calculation, but with 80-90% fewer errors
• Savings: The difference — often thousands of euros per year

Add to that improved customer satisfaction, more repeat purchases, and less strain on your customer service.

Start today

OrderPiQR offers 50 free picks per month. Enough to test whether barcode verification reduces your picking errors. No credit card, no contracts.

Also read: Preventing picking errors in the warehouse for more practical tips.