RETURNS ANALYSIS
CHALLENGES
In the United States, consumers returned 16.6% of all products sold at retail in 2021. For every $1 billion in sales, the average retailer incurs $166 million in merchandise returns. As companies take notice of the financial loss that product returns represent, it is no longer practical to accept the situation without acting.
As companies take notice of the financial loss that product returns represent, it is no longer practical to accept the situation without acting. Companies are now challenged with taking a proactive approach and implementing a program that will help reduce returns, improve profitability and protect their reputation.
Key Benefits of Returns Analysis
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Improved profitability through reduction in product return rate
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Identification of poorly performing vendors that can be avoided or mentored
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Reduction of inspection requirements for good vendors while refocusing on vendors with questionable histories
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Updating inspection and testing processes to guard against reoccurrences of poor quality product
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Improved customer satisfaction as the result of better quality product at a reduced price