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Between buyer’s remorse, relaxed return policies and the substantial increase in online purchases (which come with an average return rate of 12%-15%), 3.5 billion items are returned to retailers each year. This adds up to around $260 billion of merchandise.
A large portion of this merchandise can’t go back on store or virtual shelves – due to diminished item condition, damaged packaging or product obsolescence – and is slated for liquidation. Luckily the ‘L word’ (in this case) doesn’t have to be a term of frustration or thought of as a lost cause; in fact there is huge opportunity to recoup value for this inventory simply by applying technology and sound strategy.
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