ReRoute: Returns Automation Hub

Operations

Original Idea

Returns Automation Hub A web app portal backed by a background service that auto-approves returns, issues labels, and routes items to resale or refurb.

Product Requirements Document (PRD): ReRoute: Returns Automation Hub

1. Executive Summary

ReRoute is a comprehensive SaaS platform designed to transform the e-commerce return experience from a cost center into a competitive advantage. By leveraging rules-based automation, AI-driven visual inspection, and smart routing logic, ReRoute enables retailers to auto-approve low-risk returns, instantly issue shipping labels, and programmatically route inventory to its most profitable next destination (resale, refurbishment, or recycling).

2. Problem Statement

E-commerce retailers are currently plagued by "The Return Gap"—the period between a customer shipping an item and the inventory becoming available for resale. Manual processing leads to:

  • High Operational Costs: Warehouse staff spend 20% of their time manually inspecting low-value items.
  • Customer Friction: Refund delays lead to increased support tickets and churn.
  • Inventory Inefficiency: Items sit in "limbo" warehouses instead of being routed to refurb or liquidators immediately.
  • Environmental Impact: Inefficient routing leads to unnecessary carbon emissions.

3. Goals & Success Metrics

  • Reduce Return Processing Time: Decrease average time from return initiation to refund from 12 days to < 2 days.
  • Operational Savings: Achieve a 30% reduction in warehouse labor costs via auto-dispositioning.
  • Customer Satisfaction: Target a Net Promoter Score (NPS) of 75+ for the return experience.
  • Recovery Value: Increase the resale value recovery of returned items by 15% through smart refurbishment routing.
  • Sustainability: Track and reduce CO2e emissions by 10% through consolidated routing.

4. User Personas

  • E-commerce Operations Manager (Alex): Needs to configure return policies and monitor recovery margins across multiple stores.
  • Warehouse Logistics Team (Sam): Needs a fast, "one-scan" interface to verify items and trigger dispositioning.
  • End-Consumer (Casey): Needs a frictionless, "no-printer" return experience with immediate status updates.
  • Customer Success Agent (Jordan): Needs to view return history and manually override automated decisions when necessary.

5. User Stories

  • As a Consumer, I want to look up my order with just my ZIP code so that I don't have to hunt for a long order number.
  • As a Consumer, I want to see which items are eligible for a refund versus an exchange so that I can make an informed choice.
  • As an Ops Manager, I want to set a rule that auto-approves all returns under $50 so that my staff doesn't waste time on low-risk items.
  • As a Warehouse Worker, I want the system to tell me exactly which bin to put an item in based on its condition so that I don't have to guess.
  • As an Admin, I want to see a sustainability dashboard so that I can report our carbon savings to stakeholders.

6. Functional Requirements

6.1 Rules-Based Auto-Approval Engine

  • Allow admins to define "Circle of Trust" logic based on customer history.
  • Set price-based thresholds (e.g., auto-refund and "keep the item" for values <$15).
  • Configurable return windows per product category.

6.2 Shipping & Label Generation

  • Integration with FedEx, UPS, and DHL (via modern REST APIs).
  • QR-code-based "printerless" returns for consumer drop-offs.
  • Real-time rate shopping to select the most cost-effective carrier.

6.3 Smart Routing & Dispositioning

  • Resale: Route pristine items back to the forward-fulfillment center.
  • Refurbishment: Route defective but high-value items to specialized repair hubs.
  • Recycling/Donation: Localized routing for items with low Financial Recovery Index (FRI).

6.4 AI Visual Inspection (Mobile Browser)

  • In-browser condition assessment using the device camera.
  • Automated detection of "Original Seal Intact" vs "Damaged Box."
  • Edge-based processing to ensure privacy and speed.

6.5 Refund & Webhook Automation

  • Automatic trigger of Stripe/PayPal refunds upon carrier "first scan" or warehouse "receipt."
  • Sync return status back to Shopify/Magento Admin.

7. Technical Requirements

7.1 Stack Specifications (2026 Standards)

  • Frontend: Next.js v16.1.3 (utilizing use cache and Turbopack default).
  • Backend: Node.js v20+ with NestJS v11.1.12 (Express v5 engine).
  • Database: PostgreSQL with Prisma v7.2.0 (using prisma-client Rust-free provider).
  • Task Queue: BullMQ v5.66.5 with Redis (AOF enabled).
  • AI: ONNX Runtime Web with WebGPU backend for in-browser visual inspection.
  • Styling: Tailwind CSS with Shadcn/ui components.

7.2 Architecture & Integrations

  • Multi-tenancy: Auth0 Organizations for B2B merchant isolation.
  • Data Isolation: PostgreSQL Row Level Security (RLS) linked to org_id.
  • Shipping APIs: Direct REST integrations (FedEx/UPS) for longevity.
  • Sustainability: Calculations based on ISO 14083:2023 and GLEC Framework v3.2.

8. Data Model

Merchant

  • id: UUID (Primary Key)
  • name: String
  • auth0_org_id: String (Unique)
  • settings: JSONB (Policy configs)

ReturnRequest

  • id: UUID
  • order_id: String
  • customer_id: String
  • status: Enum (PENDING, APPROVED, SHIPPED, RECEIVED, COMPLETED)
  • disposition: Enum (RESALE, REFURB, RECYCLE, LIQUIDATE)
  • carbon_footprint_g: Float

Warehouse

  • id: UUID
  • capabilities: String[] (e.g., ["REFURB_ELECTRONICS", "APPAREL_CLEANING"])
  • geo_location: PostGIS Point

9. API Specification

POST /api/v1/returns/initiate

  • Request: { order_id: "123", zip_code: "90210", items: [{ sku: "ABC", reason: "SIZE_TOO_SMALL" }] }
  • Response: { return_id: "xyz", status: "AUTO_APPROVED", label_url: "...", qr_code: "..." }

POST /api/v1/webhooks/carrier

  • Request: Standard JSON payload from FedEx/UPS.
  • Logic: Enqueue job to BullMQ to update ReturnRequest status and trigger refund if "first-scan" is enabled.

10. UI/UX Requirements

  • Lookup Page: Minimalist design with ZIP code + Order ID. No password required (Magic Link fallback).
  • Item Selection: Grid layout with high-res product images and clear eligibility badges.
  • AI Scan Modal: Guided UI overlay showing the user where to point the camera to detect "Original Seal."
  • Merchant Dashboard: High-level metrics showing "Recovery Value Saved" and "Carbon Savings (tCO2e)."

11. Non-Functional Requirements

  • Performance: < 200ms API response time for warehouse scanning.
  • Scalability: Auto-scaling BullMQ workers via KEDA based on queue depth during "National Returns Day."
  • Security: AES-256 encryption for PII; ISO 27001 compliant data handling.
  • Accessibility: WCAG 2.1 Level AA compliance for the consumer portal.

12. Out of Scope

  • International customs brokerage and duties recovery (Phase 2).
  • Management of physical "Return Bar" kiosk hardware.
  • LTL (Less Than Truckload) freight returns for oversized furniture.

13. Risks & Mitigations

  • Fraud: Customers returning rocks instead of phones. Mitigation: AI visual inspection + Weight verification at carrier drop-off.
  • Carrier API Instability: Mitigation: Fallback to secondary carrier (e.g., ShipEngine) if primary REST API is down.
  • AI False Positives: Mitigation: Flag "uncertain" AI scores for manual warehouse review rather than auto-dispositioning.

14. Implementation Tasks

Phase 1: Project Setup

  • [ ] Initialize project with Next.js v16.1.3 and Turbopack
  • [ ] Configure NestJS v11.1.12 with Express v5 engine
  • [ ] Set up Prisma v7.2.0 with provider = "prisma-client" (Rust-free)
  • [ ] Configure Auth0 Organizations for multi-tenant RBAC
  • [ ] Initialize Tailwind CSS with Shadcn/ui theme

Phase 2: Core Infrastructure

  • [ ] Design PostgreSQL schema with RLS for Merchant isolation
  • [ ] Implement BullMQ v5.66.5 for background label generation
  • [ ] Build REST wrapper for FedEx/UPS OAuth 2.0 flow
  • [ ] Implement "Magic Link" passwordless order lookup

Phase 3: Automation Engine

  • [ ] Build Rules Engine (JSON-logic based) for auto-approvals
  • [ ] Integrate Stripe/Shopify Refund Hooks
  • [ ] Implement GLEC v3.2 carbon calculation service
  • [ ] Build the "Self-Service" customer portal UI

Phase 4: AI & Routing

  • [ ] Integrate ONNX Runtime Web with WebGPU for mobile inspection
  • [ ] Develop AI model for "Original Packaging" verification
  • [ ] Implement geospatial routing logic for 3PL selection
  • [ ] Build Merchant Sustainability Dashboard

Phase 5: Hardening & Launch

  • [ ] Load test BullMQ workers with KEDA autoscaling
  • [ ] Perform WCAG 2.1 accessibility audit
  • [ ] Conduct end-to-end integration test with Shopify Admin API
  • [ ] Deploy to AWS ECS with RDS Read Replicas