Shoppers shelled out almost 17 percent more on Cyber Monday 2017 than they did the year before. In fact, in only 24 hours, Adobe Insights reports there were $6.5 billion in online sales on Monday, Nov. 27, 2017. Mobile accounted for $2 billion in sales that day.
Yeah, yeah.. We know.. 2017 — biggest online shopping day in U.S. history.
Great news if you sell online, right? Click. Click. Click. Ah, the sound of sales.
For sure. However, we invite you to consider reality for just a moment. Sales are way up. So are returns. The sound you are hearing is actually the rise and fall of your own balance sheet. Don’t be so short-sighted as to think that what goes up isn’t going to come down. Hard.
Of the $107 billion spent online during the 2017 holiday season, Adobe predicts $32 billion in merchandise, or a whopping 30 percent, will be returned when all is said and done. Yikes! (Brick and mortar returns were 10 percent of sales — harsh, but not as crushing as being forced to take back almost one-third of everything you shipped out.)
The story isn’t pretty. Reality can often seem bleak. However, there is a silver lining; employing a high-tech, high-returns solution for reverse logistics ensures companies get the highest recovery of net costs on returns.
Face it, you can’t stop the returns from coming in but you can do everything possible to increase money-saving efficiency during the sorting process. Adopting a high-tech solution such as goTRG’s SaaS platform reduces waste, environmental impact and costs which, in turn, results in a better consumer experience, better pricing and higher retail margins.
Many companies, including Home Depot and Walmart, are choosing the highly innovative solutions offered by goTRG, a SaaS platform for Omni-Channel & Supply Chain. In addition to maximizing return recovery, goTRG’s customers opt to recoup some returned product value by selling items on a wholesale online marketplace such as goTRG’s DirectLiquidation.com, Optoro’s Bulq.com and Liquidity Services’ Liquidation.com.
To squeeze every dollar out of a returned item, it needs to be examined.
Can it be reshelved?
Can it be resold?
Is it worth fixing?
In far too many cases, companies either toss a return into the dumpster (no financial return, maximum environmental impact) or spend too much time and money in having a person make a fairly uneducated decision about disposition. The latter results in a scenario where a company might pay $35 to repair an item it can sell for less than $20.
That’s the definition of NOT making money.
The answer to what may seem like an unsolvable problem is actually fairly easy. Find a technology solution that takes the guesswork out of the returns process.
“goTRG provides its customers with the greatest chance of giving returned products a second life,” explained Sender Shamiss, CEO of goTRG, the industry’s leading supply chain and SaaS solutions provider. “With our market-changing reverse logistics software, R1, goTRG is able to track every piece of data and make the most efficient and fiscally responsible disposition decision for every item resulting in the best possible recovery.”
Many Big Box retailers and eCommerce giants like Walmart and Home Depot have embraced goTRG’s business solutions & SaaS for omni-channel sales and returns management.
“goTRG’s innovative R1 technology powers every touch, movement and decision for the world’s largest companies resulting in superior net margins, controls and sell-through,” Sender added.
R1 is a fully managed reverse logistics solution that delivers the smartest choices for every touch, movement and price decision for some of the world’s largest companies while reducing their environmental footprint. “We are proud of the way our technology solutions are helping to make the world a better place by having a significantly positive environmental impact.”
Final thought: if the Big Boys are doing it, smaller and mid-size companies can, and must, also embrace technology to get ahead. It’s never too soon to start the conversation. But, before you know it, it could be too late.
Learn more about how omni-channel and reverse logistics solutions leader goTRG is changing the way the retail and etail processes returns. You can, literally, count the ways.
Guest Post from Bari Faye Siegel