The Economics of Recommerce
Returns are on the rise, with rates spiking to 16.6% of items purchased in 2021 — up from 10.6% in 2020. Retailers were already challenged with handling this type of inventory, and now they’re finding themselves with even more of it to manage. Many have been forced into asking the consumer to “just keep it,” — creating an even more negative customer experience — while others elect to just have the item picked up and disposed of.
Additionally, retailers who tried desperately to increase stock to support massive consumer demand during the pandemic are now burdened with overstocked items and full warehouses following a drop in consumer spend.
These situations lead to massive challenges for brands - increasing costs, dormant inventory and working capital, and negative impact to their customers’ experience.
Additionally, retailers who tried desperately to increase stock to support massive consumer demand during the pandemic are now burdened with overstocked items and full warehouses following a drop in consumer spend.
These situations lead to massive challenges for brands - increasing costs, dormant inventory and working capital, and negative impact to their customers’ experience.
The apparel market has solved many of these problems through various recommerce solutions from companies like thredUP, Poshmark, RealReal and others. Amazon has incorporated resale and used items on their site for years. But, similar solutions have not been available for brands selling oversized items because it’s simply very difficult to support and make the numbers work.
FloorFound provides a solution to expensive oversized returns that takes the burden off the brand’s shoulders, makes the costs manageable, and drives gross recovery up to 70% of revenue for returned items.
This is a unique solution that impacts multiple areas of your business — specifically Operations, Marketing, E-commerce, and ESG. We’ve broken down the metrics brands we work with are using to understand the ROI of their recommerce programs.
FloorFound provides a solution to expensive oversized returns that takes the burden off the brand’s shoulders, makes the costs manageable, and drives gross recovery up to 70% of revenue for returned items.
This is a unique solution that impacts multiple areas of your business — specifically Operations, Marketing, E-commerce, and ESG. We’ve broken down the metrics brands we work with are using to understand the ROI of their recommerce programs.
We understand that oversized returns are an expensive and complicated problem, and we’ve seen too many brands overwhelmed by associated pickup, shipping, and storage costs that opt to take the loss on the item and leave it in the field, sell it to retailers, or worse — dump it in a landfill.
There’s a much better alternative. We’ve partnered with dozens of brands and have helped them transform oversized returns costs into a new stream of customers and revenue netting them on average more than 3x the revenue than previous solutions, including liquidation and marketplaces.
There’s a much better alternative. We’ve partnered with dozens of brands and have helped them transform oversized returns costs into a new stream of customers and revenue netting them on average more than 3x the revenue than previous solutions, including liquidation and marketplaces.
Download the Economics of Recommerce infographic here and view a deep dive presentation on this topic with FloorFound CEO, Chris Richter.
Want to know more about how recommerce can benefit your business?
Watch our Economics of Recommerce webinar here.
