Consider this: in 2014 consumers returned a record $284 billion worth of merchandise to retailers. That’s a huge number (about equal to the GDP of Singapore) and it is only going to get bigger due to the continued increase in online sales (which typically bring a higher return rate) and relaxed return policies by retailers to drive customer loyalty. What’s more, a lot of that merchandise can’t go back on the shelf. 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.

So, how does one create an impactful solution for liquidation of returned and excess merchandise?

B-Stock Solutions’ CEO Howard Rosenberg recently contributed an article to Supply & Demand Chain Executive on the topic, which included questions to ask when implementing a solution:

  • Does the solution provide the control you want?
  • Are you building a strategic advantage for your company?
  • Is the solution adequately flexible?
  • Is the solution compliant with public company filing requirements?
  • Do you reap the benefits or does your liquidation partner?
  • What kind of new approaches are other retailers using?

For detailed explanations on all the above questions, as well as what to look for when choosing a liquidation partner, check out the full article here. For more information on how B-Stock Solutions can help you implement a successful liquidation solution, please contact us.

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