When you’re running a huge company, it might seem more profitable and productive to work on the products that are selling fast and are not being returned. Often times, when a company is doing well, it may not care about returns because the sales are going really well. The truth is, your company could be losing money by not assigning someone to handle those damaged products, instead of letting them get piled up and thrown out. Your company can be more resourceful by organizing your returned products no matter if it’s damaged, missing parts, or if it’s just messy.
Damaged Products
Assembly line made products can be defective, but the issues can also be remedied with part replacement, or additions. If you have your returned damaged items checked for the necessary repair, you may find that there is a simple fix. By refurbishing some of those products, you can return your product to sale, and make up for what was once a lost profit. As long as the product is what the customer wants, and is working properly, you can have confidence that it will not be.
Missing Parts
Products that are missing parts should be kept so they can be taken apart and have the missing parts added. Sometimes, a missing part to a set can simply be a special screwdriver that was supposed to be included. In some cases, a piece of equipment belonging to a set could’ve been shoplifted, causing a return, and the miss of a potential sale. That’s why it’s important to evaluate the reason for the return. If the missing part or piece is simple, have it added back into the box, and get the product ready for sale once more.
Messy Returns
Sometimes our customer relations associates have to deal with open boxes, parts all over the place, and random plastic sleeves. These products are not a lost cause. Putting time into these products to make sure they are reorganized and still have the initial parts are all that needs to do in order to get the product ready for resale. This type of situation is a really simple way to lose profits. Assign someone in the customer service department to work behind the scenes to make sure products are organized and ready to be handled accordingly. Don’t let the reverse supply chain be responsible for a tiny increase or even stagnation in your profits.
Returned products can be a pain to deal with, but that doesn’t mean companies should ignore them. Setting aside customer returns to be forgotten can be a costly practice. When companies take a look at the report of their returned inventory, they can calculate all the potential loss in profit. Just imagine if these items were sorted, repaired and placed back on the shelves for sale. It would reduce the total amount of loss of inventory and boost profits tremendously. Avoid being wasteful in profits and inventory by putting the time in to organize and handle your returns.
