The world of logistics is changing fast, and nowhere is that more evident than in retail return logistics. In this episode of The New Warehouse Podcast, Kevin sits down with Bill Thayer, Founder and CEO of Fillogic, and Chris Long, SVP of Technology at Loop Returns, live from Manifest 2025. They discuss how their companies are reshaping the returns process, making it more efficient, sustainable, and cost-effective.

The Problem with Traditional Retail Returns

Returns have long been a pain point for retailers, often treated as an afterthought in supply chains built for outbound fulfillment. “Everyone spent trillions of dollars building a forward network, but for the reverse network, everybody’s on their own,” Thayer points out. Fillogic and Loop Returns are solving this issue by bringing automation, technology, and strategic partnerships to reverse logistics, helping brands recover more value from returns while improving the customer experience.

The logistics of retail returns have historically been an operational nightmare. Without a streamlined process, retailers find themselves with stacks of unsorted boxes and an inefficient system that loses time, money, and valuable inventory. “Prior to things like Fillogic and their network, you just had massive pallets of dented Amazon boxes with who knows what in them,” Long explains.

One major challenge with retail return logistics is location. Many returns centers are far from consumers, making it costly and time-consuming to process items. “The problem with retail logistics is retail logistics,” says Thayer. “The networks were built around free trade zones, ports, and railheads—far away from the consumer.” By repurposing underutilized spaces in shopping malls, Fillogic is solving this problem, allowing returns to be processed closer to their point of origin and reducing transportation costs and carbon emissions.

Another issue is visibility. Returned items can get lost in the system without real-time tracking and automation, delaying refunds and restocking. “The fulfillment side is optimized with robotics and AI, but the reverse side is still a mess,” Long adds. Loop Returns brings order to this chaos with a returns management platform that routes items efficiently, reducing processing times and fraud.

Turning Retail Return Logistics into a Competitive Advantage

Despite the challenges, leading retailers are beginning to see returns not as a burden, but as an opportunity. “The really savvy brands have realized that if they optimize their returns process, they can actually drive revenue and increase customer loyalty,” says Long.

By leveraging Fillogic’s logistics network and Loop’s intelligent returns platform, brands can:

• Process returns faster – Loop Returns automates the initial customer interaction, while Fillogic ensures rapid sorting and restocking.
• Cut costs – “We turn inventory twice as fast and cut costs in half,” Thayer shares.
• Improve sustainability – Fewer unnecessary shipments and better routing reduce waste and carbon footprints.
• Reduce fraud – “Fraud in returns is skyrocketing. People are gaming the system, and we’re building the tools to fight back,” Long explains.

The key is using technology to segment customers and tailor returns policies. “Brands need to put strategic friction into the process—make returns easy for good customers but harder for fraudulent ones,” says Long. This personalization is the future of reverse logistics, ensuring retailers maximize efficiency while maintaining strong customer relationships.

Key Takeaways on Retail Return Logistics

• Traditional returns processes are inefficient and costly, with retailers losing money due to slow processing, fraud, and misplaced inventory.
• Fillogic’s mall-based fulfillment centers reduce transit times and make reverse logistics more sustainable and cost-effective.
• Loop Returns automates the returns process, providing customers a seamless experience while optimizing retailer efficiency.
• Retailers embracing reverse logistics technology gain a competitive edge, reducing costs, improving sustainability, and increasing revenue.
• Personalized return policies are on the rise, allowing brands to incentivize responsible returns behavior while deterring abuse.