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In 2014, consumers returned a record $284 billion worth of merchandise to retailers. This number is increasing largely due to the increase in online sales (which typically bring a higher return rate) and relaxed return policies to drive customer loyalty. Lack of innovation over the past 50 years for dealing with consumer-returned and excess inventory is costing retailers billions of dollars, and can no longer be approached as an afterthought or left to inefficient traditional liquidation methods. This is especially true in today’s climate when every point of operating margin matters so much. By implementing an efficient solution for returned and excess merchandise slated for liquidation, a company can meaningfully impact its overall operating margin.
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