Laid-back return policies may well foster a competitive advantage for high street retailers with consumers, but it can cause major problems for reverse logistics. Hundreds of thousands of pounds in merchandise are returned every year and most of this never returns to the shelves – this could be due to damaged packaging or the product being out of season.
Whatever the reason, there’s a significant amount of money being wasted in warehouses and stock rooms all over the country. However, by thinking outside the box and searching beyond the traditional methods of recouping losses, you can optimise a solution that brings cash back into the business.
Bis Henderson Consulting have compiled this blog to give you a better idea of how to save money where customer returns are concerned.
Automated Auction Services
An online based auction service can make it easier for potential buyers to compete for your inventory, than it would be to negotiate face-to-face with a few buyers.
Remain in Control
Retaining control over your secondary market is essential. Whoever purchases your excess merchandise can have an effect on your brand, so choosing wisely can’t be underestimated.
Your excess stock may have absolutely no value to your business, but it may have substantial value to secondary market buyers who specialise in competing for and selling secondary inventory.
Zero in on the Right Buyers
When more buyers are added into the equation, it increases competition and therefore prices. So logic suggests that having the right set of buyers might increase competition and therefore drive up your prices even more.
Categorise your buyers into product categories, condition codes, financial ability and geographic location to further your ambitions.
Traditional methods for dealing with customer returns and excess stock are seldom the best way to go. Reactive and traditional methods are part of the problem that has resulted in billions of lost pounds by retailers and brands.