Increasing Recovery on Consumer Returns: What’s at Stake?

Billions of dollars’ worth of US electronics manufacturer’s stock shipments gets returned unsold. That’s why businesses are now turning to Value Recovery to recoup considerable revenues.

History has shown that untenable levels of US stock shipments are returned to manufacturers. With an estimated 50-70% of consumer electronics are returns being No Fault Found (NFF), a solution needed to be found in order to regain profits and resist aggressive trading between top brands.

Thankfully, B2B online selling has now given rise to a thriving secondary market of buying, repairing, repackaging and reselling of returns inventory in what is now seen as a crucial alternative channel in the sale of secondary product.

Most CE manufacturers utilise one of two channels for reselling - retail salvage or auctions. Yet, whilst retail salvage, otherwise known as bulk liquidation, offers the temptation of cash up front and the quick clearance of your warehouse floor, you lose all control over downstream sales and this could potentially have a negative impact on your brand.

In value recovery terms, the evidence now points to auctions winning hands down over bulk liquidation, but not all auctions provide that all important downstream sales control. FreeFlow not only helps CE manufacturers to consider all aspects of their go-to-market strategy, but also enables brands to host auctions via their own online private marketplace platform. This not only gives brands the ability to control downstream sales to permit a clear view of the buyer, but also enables you to optimise the resale of your excess inventory within a competitive environment.

FreeFlow can demonstrate that if you’re clear on what you’re selling, and back it up with consistent operational performance, you’ll grow a loyal following of competitive bidders. And, by presenting your product to your buyers with an eye to helping them make money, you will further enhance your capacity to maximise margins through the retrieval of returned stock.

Knowing how to recruit, retain and grow your buying community is more science than art, discipline than hope, and FreeFlow provides brands with efficient strategies for recruiting new buyers alongside other auto-merchandising tools within its private marketplaces, leaving you in control of key decisions, channel control and pricing.

It’s an approach you may well wish to investigate.


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