Gartner Research

How to Maximize Full-Price Sales of Returned Products in a Multichannel Retailer

Published: 24 April 2014

ID: G00261105

Analyst(s): Tom Enright

Summary

Across the retail sector, the volume and complexity of returns are increasing. In today's multichannel markets, most retailers lack a cost-efficient returns process. This research provides retailing supply chain executives the insights needed to maximize the full-price resale of returned products.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Focusing on gross sales as a KPI can create a culture of suppressing the importance of reselling returned merchandise, and can mislead retail executives as to true trading and demand patterns
  • Excessive prioritization of the route to market supply chain over the returns supply chain has meant that returns management has had insufficient priority in most retail executives' strategic thinking
  • Growing online sales, without supporting reverse logistics capabilities, could overwhelm retail executives with increased volumes of returns, as well as reduced availability and fulfillment levels

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