Retail Returns Challenge
Customer returns are a fact of life. But just because they are inevitable doesn’t mean they can’t and shouldn’t be managed. In fact, for every $1,000,000 in customer returns, a retailer loses as much as $500,000 in EBITDA! But return rates can creep up without being noticed. Policies that once made sense can now add unnecessary—or invisible–expense burden. Process or technology changes can have unintended consequences.
Newmine’s CHIEF RETURNS OFFICER
The benefit is clear and measurable both in terms of bottom line contribution as well as customer loyalty and satisfaction. Data shows that for every 1% reduction in returns, 50% of that reduction drops directly to EBITDA. So how beneficial is that to the organization? So, if you reduce your customer returns by $1,000,000, half that amount, $500,000 will go right to your bottom line. We think that’s a compelling case to take a careful look at your returns!