What happens to retail returns?
In 2015, retail returns reached $290 billion in the U.S. and Canada, accounting for 8 percent of total retail sales. Companies face challenges such as constantly changing demand, costly warehousing and transportation expenses, as well as the need for a quick turnaround time to recover profit from returned goods.1
Time is the biggest key factor in determining the recoverable value of returned goods. Retailers must process, sort and send items to final disposition as quickly and cost-effectively as possible. Here are some of the ways retail returns are processed.
- Return to stock: Returned items in new or like-new condition can be put back on shelves or used for e-commerce fulfillment for full value.2
- Return to vendor: We process returned items that didn’t meet customer requirements due to flaws or damage.
- Liquidate in secondary markets: Due to costs, these returned items are collected and sold in bulk below retail value to liquidation and outlet stores.
- Recycle, donate or destroy: When necessary, we recycle, donate or dispose of items — either in whole or in part — using regulatory-compliant and environmentally friendly procedures.
Download the graphic to see how the process works.
2 Brian J. Gibson, C. Clifford Defee, Rafay Ishfaq, “The State of the Retail Supply Chain: Essential Findings of the Fifth Annual Report” (Retail Industry Leaders Association), March 10, 2015.
GENCO Is Being Rebranded to FedEx Supply Chain
Leading supply chain solutions, paired with the global FedEx network, give customers endless possibilities in an interconnected world.
How inbound logistics impacts the customer experience
Focusing on the fundamentals of inbound logistics can also help deliver an outstanding and consistent customer experience.
Three ways emerging tech is helping the supply chain workforce
Technological innovation is a driving force for improving the holistic efficiency of the supply chain as well as safety and efficacy of your workforce.