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Relaxed return policies create a competitive advantage for retailers with consumers but can wreak havoc on reverse logistics. Hundreds of billions of dollars in merchandise is returned to retailers each year, most of which can’t go back on the shelf; this could be due to diminished item condition, damaged packaging or product obsolescence. No matter the reason, that’s a significant amount of idle inventory taking up backroom or warehouse space and subsequently costing money.
However, by getting smart about the secondary market and looking beyond traditional liquidation methods, you can create a more sophisticated, scalable solution that optimises the cash coming back into the business from customer returns and other excess stock.
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