Wholesale Returns Handling That Brings Order Back to Chaos

Wholesale returns handling is one of those operational chores that looks simple on paper until a retailer sends back a half-mangled pallet with a note that says something vague like quantity mismatch or packaging noncompliant. Search trends show operators asking why are my wholesale returns so costly or how do I process retail returns correctly, which usually means frustration has already set in.

If you have ever opened a return shipment and wondered whether a retailer repacked it using blindfolds, you are exactly the audience for this conversation.

Why wholesale returns are tougher than D2C returns

D2C returns arrive one item at a time with clear reasons: too big, too small, changed mind. Wholesale returns arrive in batches, accompanied by retailer opinions rather than explanations. They may include damaged units, mislabeled cartons, missing components, or items that were simply scanned incorrectly. Brands must sort through the mess and determine what is salvageable, what is scrap, and what requires credit negotiation.

Joel Malmquist, VP of Customer Experience at G10, explained the stakes. "If you do not do it right, you get those massive chargebacks." Returns are not just reverse logistics. They are financial risk.

Where wholesale return workflows fail

Most breakdowns start with inaccurate outbound inventory. If the original shipment was incorrect, the return will be even more confusing. Many brands learn this too late, after the warehouse receives returns that do not match any internal record.

Connor Perkins, Director of Fulfillment, sees this constantly. "One of the pain points our clients have experienced with previous 3PLs is inventory accuracy. Maybe their previous 3PL was not great at picking the orders accurately. So they were losing money by shipping wrong items or wrong quantities of items." Return problems often begin with outbound mistakes.

Why D2C-first 3PLs buckle under wholesale returns

D2C return workflows focus on single-unit disposition. Wholesale requires pallet-level, case-level, and sometimes master-carton-level reconciliation. D2C systems cannot track retailer variances, noncompliance reasons, or multiunit discrepancies. As a result, returns get dumped into bulk bins, written off prematurely, or mishandled entirely.

Bryan Wright, CTO and COO, highlighted the systemic issue. "A bad WMS will not track inventory 100 percent. A good WMS tracks inventory through the warehouse at every point you touch it." Wholesale returns need that granularity.

How communication delays make returns worse

Returns are time-sensitive. Retailers expect quick acknowledgment and fast resolution. Many 3PLs route return questions into slow-moving ticket queues where responses trickle out days at a time, leaving brands scrambling without answers. Meanwhile, returned units sit unprocessed, inflating inventory ambiguity and delaying restock opportunities.

Joel sees the cost of the delay frequently. "At some 3PLs you get thrown into a ticketed queue, and you get different people replying every time. It can take days, if not weeks, to get a resolution." Wholesale cannot tolerate that delay.

G10 eliminates the lag. "You call one person. That is it. And things get done," Joel said.

What proper wholesale returns handling looks like

A strong returns workflow begins with structured intake: scanned inbound pallets, validated quantities, clear disposition codes, and condition-based categorization. Restockable items flow back into inventory. Reworkable items move into corrective loops. Damaged goods follow retailer-specific reporting requirements. Nothing gets lost. Nothing gets guessed.

Connor explained how G10 prepares brands during onboarding. "When we onboard a client who sells into places like Amazon or Walmart, the process changes depending on where they are selling. We work through all of their routing guide requirements and make sure the warehouse is ready before the first order ever drops." Clean outbound processes make clean returns possible.

Returns under pressure: how G10 holds the line

Wholesale returns spike during seasonal resets, product transitions, and retailer overstock corrections. This is where weak 3PLs crumble and strong ones get sharper. Fast inspection, accurate documentation, and inventory reconciliation matter more than ever.

Joel recalled a moment when a retailer returned multiple pallets unexpectedly. "Our supervisor, warehouse manager, and several employees worked the entire day into the night, then came back at 5 a.m. to make sure we had the routing completed." Returns moved through the system with the same rigor as outbound orders.

He shared another example from a viral surge. "The client asked, Can you help us? And we said, Yeah, we gotcha. Then we sent a truck to the carrier at midnight." Even with demand spiking, returns remained organized.

The bottom line for wholesale brands

Wholesale returns handling determines whether you regain value or absorb losses. When returns are processed accurately, quickly, and consistently, brands recover inventory, reduce disputes, and maintain strong retailer relationships. When returns are mishandled, margins evaporate.

If you want returns handling that protects your inventory, your margins, and your sanity, reach out to G10. You will get structured processes, accurate reconciliation, and a team that treats returns with the seriousness they deserve.