The majority of products sent back by Black Friday shoppers will end up being resold through discount outlets, according to data from retail logistics specialists Advanced Supply Chain.
Research by the logistics company, which moves over 300million goods around the world annually for retailers, found that just one in ten retailers manage to resell more than 76% of returned goods via the original point of sale.
Where products aren’t resold through the same channel:
• 41% of returns are resold through discount sales channels, such as outlets
• 16% of returns are recycled
• 13% of returns are donated to charities
• 12% of returns are sold to other businesses, such as auction houses
• 12% of returns are disposed of
• 6% = other
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Advanced Supply Chain CEO Ben Balfour said: “Disposal of returns doesn’t support retailers’ sustainability goals and is often the very last resort. Discount sales channels prove a popular destination for returned products, because consumers like a bargain and it’s a quick option for retailers to shift imperfect, returned stock at the best-possible price.
“The real win-win for shoppers and retailers is for returned items to be resold as Grade A stock, where a product is quickly restored to perfect condition and made available through its original sales channel.
“This helps avoid margin dilution caused by returns and puts less cost pressures on retailers, which otherwise risks shoppers being charged to return unwanted goods. Connected, data-rich supply chains are crucial for improving Grade A salvaging of returns.”
Advanced Supply Chain works with retailers to develop efficient returns processes that restore goods back to prime condition and make them quickly available for resale.
Research from the company also suggests “false returns” will be an issue for retailers this Black Friday. Two-thirds (63%) of retailers have seen a rise in disingenuous returns during the cost-of-living crisis.
Balfour concludes: “Wardrobing is an issue for retailers and especially around the festive season. However, we’re more likely to see a spike in false returns because Black Friday deals can encourage impulse purchasing and trading down.
“People buy brands they are less familiar with, and less impressed by, as well as products they can’t really afford. They send items back when the financial reality sets in and aren’t always genuine about their reasons for returning products.”
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