Stow
Returns Management

Returns management from receipt to inventory outcome.

A return reaching the warehouse is only the start. It still needs to be identified, inspected, graded and moved to the correct inventory or exception outcome. Stow manages the physical returns workflow across UK and EU fulfilment operations.

Discuss your returns operationSee how returns are processed
ReceiptInspectionGradingRestockingException review
The real problem

A returned product is not useful inventory until somebody has checked it.

A return can be physically inside the warehouse while the system still cannot say whether it is sellable, damaged, incomplete or waiting for review. Until that decision is made, the item is neither useful stock nor a closed exception.

A return sitting in a box is stock you cannot sell and a customer issue you cannot close.

Returns queueToday
Received today84
Awaiting inspection21
Ready to restock38
Exception review7
Outcome recorded18
StatusInspection in progress
Illustrative operational view
Returns flow

What happens when a return reaches the warehouse?

Return arrivesIdentifiedReceivedInspectedCondition assessedGradedOutcome recordedRestock or exceptionInventory updated
01
Return received

The physical item reaches the returns operation and is matched to the available return information.

02
Item identified

The product and the relevant order or return reference are checked, where that information is available.

03
Condition inspected

The item, its packaging and any required components are reviewed according to the agreed process.

04
Grade or condition outcome recorded

The physical condition is recorded using the outcome rules agreed for that product.

05
Restock or exception route applied

Suitable stock can move towards resale availability; exceptions stay separate for further review.

06
Inventory status updated

The warehouse record reflects the approved physical outcome, so stock status matches reality.

Timing depends on the return volume and the inspection each item needs. Stow does not promise instant restocking; it commits to giving each return a recorded outcome rather than leaving it in a queue.

What Stow handles

The returns operation behind the parcel coming back.

Grouped by the job it does, from the item arriving to the stock record telling the truth again.

Receipt & identification

Returns receipt
Receiving returned goods
Item identification
Return reference matching where available

Inspection & condition

Physical inspection
Condition review
Completeness check where supported
Damage identification where supported

Grade & outcome

Grading
Return outcome recorded
Resale suitability
Exception routing

Inventory reintegration

Restocking suitable stock
Inventory status update
Availability after approved processing
Exception separation
Inspection

The box came back. What condition is the product actually in?

Inspection is what turns “a parcel arrived” into a decision the warehouse can act on. What it needs to establish depends on the product and the process agreed with you, not one universal standard.

Correct item
Visible condition
Packaging condition
Completeness
Signs of use
Damage
Whether further review is required
Return inspectionRET-10428
Product matchConfirmed
PackagingOpened
Visible damageNone
ComponentsComplete
StatusReady for grading
Illustrative operational view
Grading & outcomes

Inspection finds the facts. Grading decides the warehouse route.

These are outcome categories, not a universal grading scale. The rules that decide which category a return lands in are agreed for your products.

Resale suitable

Meets the agreed condition rules and can move towards available stock through the normal restock steps.

Review required

Needs a further check, or a different approved route, before any inventory decision is made.

Exception

Condition, completeness or information needs review before the return can be closed.

Restocking

A return sitting in a box is stock you cannot sell.

There is a gap between a return being received and it becoming available inventory again. Suitable stock only becomes sellable after the required physical and system steps are complete — the same discipline as warehouse putaway and inventory control.

InspectedOutcome approvedRestock taskLocation updatedAvailable

Stow does not promise instant restocking, and does not quote a universal turnaround time. What it commits to is that suitable stock reaches available inventory through a clear, recorded set of steps rather than reappearing by guesswork.

Where it holds

Not every return should go back onto the shelf.

01The product does not match the expected return.
02The item is incomplete.
03Visible damage needs review.
04Packaging condition affects resale suitability.
05The return reference is unclear or missing.
06The physical condition does not match the expected outcome.
07The item cannot be released to available inventory without a further decision.
Return exceptionHold
Return refRET-10428
ProductIdentified
ConditionReview required
ReasonMissing component
Inventory statusHold
Next
Verify expected contents
Record outcome
Route exception
Illustrative operational view
Inventory accuracy

Returned stock can improve inventory or distort it.

A returned item physically arriving should not automatically make it sellable. Inspection and outcome come first, stock status has to reflect physical reality, suitable items are restocked, and exceptions stay separate. That is why returns processing sits right against inventory accuracy and stock control.

Return status
Received
Condition status
Approved for restock
Warehouse status
Putaway pending
Inventory status
Not yet available

Then, once putaway is complete, the same unit moves to available — and only then can an order be picked against it.

Customer-service visibility

Customer service needs an answer, not another warehouse chase.

A recorded physical outcome gives support a status to look at instead of an email to send. Where the relevant systems and processes are connected, the return’s operational state can be visible to the team.

ReceivedInspection in progressOutcome recordedRestockedException review

This is operational status visibility, not financial decision ownership. Stow does not send every customer update, issue refunds, or authorise exchanges — those depend on your process and systems.

Closed loop

The return journey starts where outbound shipping ended.

Returns are the back half of the same operation that ships orders out. The two connect, but a delivery exception and a physical customer return are related, not identical, workflows — not every failed delivery follows the same route back. The outbound side is ecommerce shipping and carrier management.

FulfilmentShippingCustomerReturnInspectionInventory outcome
Fulfilment & returns

The fastest fulfilment operation still needs a plan for what comes back.

Fulfilment sends inventory out; returns processing decides what can come back into usable stock. When returns are processed inaccurately, inventory availability drifts and unresolved returns turn into stock and customer-service problems. It is the same operation seen from the other end — ecommerce fulfilment going out, returns coming back.

Cost drivers

What affects the cost of returns handling?

Returns are priced per return, and the work each one needs moves the number. You can model where returns sit in the wider invoice on the pricing page.

Return volume
Items per return
Inspection complexity
Product type
Grading requirements
Restocking work
Exception rate
Storage while awaiting a decision
Cost anatomy
Return receipt
+Inspection
+Grading / outcome
+Restock or exception handling

Illustrative, not a universal formula. Not every driver is a separate line; returns are priced per return, and Pricing shows how it is charged.

UK & EU reverse logistics

Returns work best when the return route matches the fulfilment operation.

UK returns can be handled by the UK operation and EU returns by the Poland operation, connected to where the stock actually sits. Not every return should cross a border to be processed; the right routing depends on the operating model, not a single rule.

UK returns
UK operation
UK stock reintegration
EU returns (Poland)
EU operation
EU stock reintegration
Routing inputs
Where stock sits
Return volume by market
Product type
Operating model

This is an operational routing decision, not VAT, tax or customs advice, and Stow works through it with you rather than assuming every brand needs separate return routes.

The decision

When do returns become the problem?

A quiet returns process is not something to fix. It usually becomes a problem when several of these show up together:

Returned products wait too long for inspection
Sellable items sit unavailable in a returns area
Customer service cannot see return status
Grading decisions are inconsistent
Inventory does not reflect return outcomes cleanly
Exception stock is mixed with sellable inventory
Returns create repeated manual warehouse work
UK and EU returns run through disconnected processes
Your current 3PL cannot explain what happened to returned stock

Switching provider is not automatically the answer. If returns are under control and inventory reflects them cleanly, there may be nothing to change. When you are weighing it up, it helps to compare running fulfilment in-house against a 3PL.

Related

Read next.

Returns FAQ

Common questions about returns management.

What is returns management?

Returns management is the physical warehouse operation that handles a product after it comes back: receiving it, identifying it, inspecting its condition, grading the outcome, and either restocking suitable stock or routing an exception for review. It is the reverse-logistics side of fulfilment, and Stow runs it across the UK and EU.

What happens when a return reaches the warehouse?

Arriving is not the same as being resolved. The item is received and matched to the available return information, inspected for condition and completeness, and given a recorded outcome. Only then can suitable stock move towards resale, while anything needing review is held separately.

How are returned products inspected?

Inspection checks the item against the expected return: the correct product, its visible condition, packaging, completeness, any signs of use, and whether it needs further review. The exact standard depends on the product and the process agreed with you — not every category is inspected to the same rules.

What does return grading mean?

Grading records the physical condition against agreed outcome rules so the warehouse knows the route: resale suitable, review required, or exception. Stow does not impose a universal grading scale; the outcome categories are set to suit your products.

When can returned inventory be restocked?

Once a return is inspected and its outcome is approved as resale suitable, it moves through a restock task and a location update before it counts as available stock. It becomes sellable again only after those physical and system steps are complete — not the moment the parcel arrives.

What happens when a return cannot be restocked?

It is held as an exception rather than mixed into sellable stock. The reason is recorded — wrong item, incomplete, damage, unclear reference or a condition mismatch — and the next step is taken based on the agreed process. Exception stock stays separate so it cannot be sold by mistake.

Does Stow issue refunds or approve exchanges?

Stow manages the physical warehouse workflow: receiving, inspecting, grading and recording the return outcome. Refund, exchange and customer-compensation decisions depend on your agreed process and systems and are not automatically owned by Stow. The recorded physical outcome can be made visible to the workflow that does make those decisions.

How do returns affect inventory accuracy?

A returned item physically arriving does not make it sellable. If returns are not processed cleanly, stock either goes unavailable when it could sell, or gets counted as available before it should. Recording the outcome and updating stock status is what keeps inventory honest — the same discipline as warehouse inventory control.

Can Stow manage returns in both the UK and EU?

Yes. UK returns can be handled by the UK operation and EU returns by the EU operation in Poland, connected to where the stock sits. Where a return should be routed is an operational decision, not tax or customs advice, and it depends on your operating model rather than a single rule.

Tell us what comes back and what needs to happen next.

Your return volume, product types, inspection requirements, grading rules and the outcomes your operation needs to support. We'll review the physical returns workflow and the warehouse work involved.

Discuss your returns operation →