Infobip has highlighted Rich Communication Services and WhatsApp as messaging channels retailers can use to manage the cost and operational disruption of product returns in the UK, as annual return costs are expected to exceed GBP 27 billion.
The company cited data from Retail Economics, which forecasts that the annual cost of returns across the UK retail sector will rise above that level. The warning comes as retailers move from peak seasonal trading into a period that often sees higher returns volumes.
Returns create direct costs for retailers through reverse logistics, refunds and processing. They also affect stock availability and planning. Retailers also face differences in consumer behaviour, including repeat returners and late returns that can complicate inventory decisions.
Infobip said some of these behaviours link to "buy-to-try" purchasing and "wardrobing", which refers to items bought for short-term use and then returned. The company said delayed returns can increase the impact on profit margins and inventory management.
"Each year we see retailers impacted by the burden of managing post-Christmas returns. At times, it can seem like an unavoidable aspect of online shopping, but there are ways of managing return levels and reducing their business impacts. By offering richer communications, including high-quality images, and facilitating two-way conversations, RCS and WhatsApp are helping retailers to address the leading causes of returns and streamline the returns process," said Kim Johal, Retail Specialist, Infobip.
Pre-purchase clarity
Infobip argued that richer messaging can play a role before a purchase. It said returns often follow a mismatch between expectation and reality, particularly in categories where sizing, fit and appearance drive purchase decisions.
The company said RCS and WhatsApp can deliver content inside a messaging conversation. It listed high-resolution images, 360-degree views and interactive sizing tools as examples. Infobip said these features can reduce uncertainty at the point of decision. It linked this to fewer returns driven by product expectations not matching what arrives.
RCS is a protocol used by mobile operators and Android messaging apps. It builds on SMS, adding features such as richer media and interactive elements. WhatsApp is a separate messaging platform used widely by consumers in the UK. Retailers have used it for order notifications, customer service, and marketing messages where consent applies.
After-sales messaging
Infobip also focused on post-purchase communication. It said retailers can use messaging channels to provide information that keeps customers engaged with a product after delivery.
The company said messages can include care instructions, usage tips and styling advice. It framed this as a way to reduce dissatisfaction after the purchase. It also linked this to fewer returns related to perceived issues that could be addressed with clearer guidance.
Retailers already use email, chat and SMS for parts of this process. Infobip's position suggests that richer channels can increase engagement by placing guidance where consumers already communicate. It also said two-way conversations matter, which can add a customer service element without moving a shopper to a separate channel.
Returns workflow
Infobip said messaging can also play a role when a return becomes necessary. It described an "in-channel" process that covers the steps from initiating a return through to tracking.
The company said RCS and WhatsApp can handle returns initiation, digital label generation and real-time tracking updates. It said this type of process encourages faster returns, which can reduce the risk of stock becoming outdated. It also said faster processing can lower costs associated with handling returns.
Retailers have faced pressure on returns policies and processing times as eCommerce has grown. Some have introduced charges for returns or tightened return windows. Others have invested in consolidation, drop-off partnerships and automation. Messaging-based workflows represent another area of operational change, focusing on keeping the customer journey within a single conversation thread.
Channel strategy
Johal also linked RCS and WhatsApp to broader customer communications strategies that include marketing and service functions.
"RCS and WhatsApp are emerging as an indispensable components of an omnichannel communication strategy, empowering retailers to drive efficiency across marketing and customer service. This approach leverages new technologies that provide greater transparency and efficiency throughout the customer journey, crucial for improving margins and building trust with consumers," said Johal.
Infobip operates a cloud communications platform that integrates messaging channels for businesses. The company positions its services around customer engagement and communications management across multiple channels, including identity and contact centre products.
The company's comments suggest retailers will keep investing in customer communications as they reassess returns costs and customer service operations during the year.