Depending on what retailers do with holiday returns and overstock inventory—to the degree that they touch it, sort it, triage it, refurbish it, recycle it, resell it—the associated costs of the reverse supply chain can add up quickly. “It’s expected that roughly 10 percent of purchases will end up being returned, so the estimates that I’ve read is that will translate into $70 billion worth of retail sales, which just get reversed. The impact is enormous. With 10 percent of your sales coming back, it’s not just running the register backwards, but the cost associated with handling all that product coming back,” according to Howard Rosenberg, CEO and co-founder of B-Stock Solutions.

There are several ways a retailer can try to recoup value from the gift returns and overstock inventory that tend to accumulate immediately after the holidays: resale to another consumer (in some cases including reconditioning and/or refurbishment), resale in bulk on the secondary market, donation and recycling. Destruction is another option for retailers, although no value is recouped, but further reduced.

Read Full Article >>

More from the B-Stock Blog

Discount Retail Chains’ Struggles Highlight Need for Diversified Secondary Market Strategies
Discount Retail Chains’ Struggles Highlight Need for Diversified Secondary Market Strategies

Within the last few months, Big Lots, Channel Control Merchants, and American Freight have each announced bankruptcy. The immediate future looks different for each of these organizations, and while these developments were somewhat expected to those in the know, they’re…

Nov 13 2024 · 6 min read

The B-Stock Holiday Playbook
The B-Stock Holiday Playbook

Nov 11 2024 · 0 min read

The iPhone 16 Is Breaking Pricing Trends In a Surprising Way
The iPhone 16 Is Breaking Pricing Trends In a Surprising Way

Apple released four new iPhone 16 models in September 2024. While the announcement, hype, and release happened just as consumers and players in the mobile industry have come to expect, what happened next in the secondary market was something of…

Oct 31 2024 · 4 min read

Like what you see?

Subscribe to our newsletter to get the latest news from B-Stock.