Most unsold and returned product disappears into the abyss of storerooms, never to be sold or repaired. Revlogs offers an alternative ending to this tale of woe. A profitable ending…
There’s nothing worse for a retailer or manufacturer than merchandise which just can’t be sold. But as you very well know, this is still one of the biggest drains on profits for both retailers and OEMs. An effective reverse logistics program will greatly reduce the number of items which end up gathering dust in returns rooms and eventually being thrown on the scrap heap.
From a retail perspective, a customer return is generally replaced with a new item and a credit to the OEM is raised. While this behaviour is more prevalent with low-budget stock items, it can happen with the more expensive products as well. Whether returned items linger in the returns room or – worse still – are stolen, the negative impact on your bottom line is undeniable.
Revlogs has found that in about 80% of cases returned items are either completely undamaged or in need of only minor repairs. Whether it is a skirt with an unravelled hem, an electric toothbrush with a flat battery, or a dinner service with one chipped plate, no-one in their right mind would assign the item absolutely zero value. Yet this is what often happens: the product is stashed in a returns area (which should really be used to house saleable product) and forgotten about until the annual stock-take.
With an intelligent outsourced reverse logistics system in place, this would never happen. The skirt would be repaired, the battery in the toothbrush would be replaced, and the broken plate substituted for a new one. Within a week or two the items could be back on the shelves, contributing to your revenue.
More serious defects
Even the 20% of returned products which are severely damaged are not worthless. Regardless of whether they are sent to a repairs centre and later resold, or sold on to a third party to salvage some value, the message is still resoundingly clear: product which in the past would eventually have been thrown out is now contributing to your bottom line.
3 ways Revlogs boosts your bottom line
It is an irrefutable fact that reverse logistics will allow you to have more products on the shelf all the time while significantly contributing to a shorter cash-to-cash cycle.. It will do this by:
- Eliminating the need for large returns rooms and in the process liberating more retail space.
- Ensuring that products with minor (or zero) defects are back on the shelves as soon as possible.
- Seeing to it that even products with more serious defects are resold whenever possible.