Many product vendors invest freight, labor and storage costs to process returns at their own facilities, only to liquidate the products in bulk when they arrive from the retailer. Liquidating from the retailer's returns center can avoid these costs and generate similar or higher recovery rates.
For some products, immediate liquidation is clearly preferred over extending the disposition cycle. Heavy freight like large furniture can yield a good recovery value, but not good enough to warrant the high transportation cost and damage risk. Low-value items like toothbrushes and combs have limited recovery value and would not be worth the extra freight and processing costs.
Over the last 10 to 15 years, product liquidation has become a large and increasingly sophisticated industry. Leading third party reverse logistics providers have invested in the high-level expertise and technology required to transform product liquidation from a "necessary evil" into a profit center for both product vendors and retailers.
Here are the advantages that leading third party reverse logistics providers can bring: Read More.
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