Growing a business is never easy. With how fast the retail landscape is changing, making profits from products feels tough for any individual or store owner. From managing product returns efficiently to balancing expenses and needs, it is critical to maintain profitability while considering customer satisfaction.
Have you ever wondered how much money your business could save by skipping warehouse storage for returns?
Traditional returns processes have been the option most businesses opt for, but this comes with a significant problem: costs and extra investment.
Warehousing, transportation, and handling the items before they can be resold or liquidated. The list continues from them.
It is a better idea to have hybrid return models since they open options to maximize your income and reduce costs. For instance, moving to a “return-to-resell” program that bypasses warehouses. This is one of the best options since they help send returns directly to liquidators.
This new approach is innovative, and there are multiple programs retailers can be part of. The approach offers you instant liquidation for returns, cutting storage costs in the process.
Coastal Surplus Solutions helps retailers implement these efficient practices. We also open a hybrid strategy and help you work around it.
What Is a Hybrid Returns Model?
The name of the model gives it away: having more than your traditional model.
While this is the premise of “hybrid,” the entire concept in retail includes how you work on your logistics and streamline profits in retail.
Compared to a traditional retail business, a hybrid returns model streamlines reserve logistics. This is done by redirecting returned products away from the warehouses.
You can combine both options, but what makes the hybrid model better is how the products go directly to liquidators or resale channels.
You don’t store returns but rather move this now-unwanted inventory to secondary markets. There, items are easily resold or repurposed.
The model leverages technology and partnerships to evaluate returns rapidly. What it reduces for retailers specifically is:
- Handling time with the products in order to repurpose or resell them.
- Being stuck with inventory and returns.
- Reducing profits because of how much retailers spend on warehouse space.
Benefits of Return-to-Resell Programs
What’s the obvious benefit of this model? It is more than just profits and cash flow.
- You reduce operation complexity as a whole since it simplifies reverse logistics. You don’t have to go through multiple touchpoints or transfer steps.
- It is more sustainable. Since you are repurposing items, they won’t end up in landfills. This also encourages second chances, and you get a lot from items that weren’t going to make you any profit.
- Achieves cost reductions as you get to eliminate the need for expensive storage space. It reduces labor costs and helps you redirect your cash.
- Instead of being stuck with inventory, you get to convert returned goods or inventory into actual revenue. The best part? It is done quite quickly.
Real-World Impact (Especially in Florida)
Supply Chain Dive confirms that companies that use return-to-resell programs reduce storage costs. They also speed up cash flow. This helps businesses focus on growing rather than having to manage returns or extra waste in the inventory.
This has brought a new opportunity to repurpose the concept of the business and get the most out of the entire supply chain and its returns.
A case study from Inmar Intelligence highlights how a top-10 national retailer saved $4 million monthly in store labor. This was all achieved by consolidating returns processing and improving liquidation through returns.
At Coastal Surplus Solutions, we partner with retailers to implement hybrid returns models. We do it to maximize their value of returned products.
While our services are mostly about sourcing goods, we work on the rest of the steps with returns in particular:
- Our professionals use data-driven tools to assess the condition of returns. This establishes the resale potential of returns in real time and helps you set up a new price.
- We connect these goods with people who need and want them in order to keep moving the supply chain and bring your profit.
- Logistics? All are handled. We streamline them and ensure returns bypass warehouses and reach the final target.
Get Started on Hybrid Returns Models
While they sound like a lot of work, the return will be immediate.
Hybrid returns models introduce a new, smart, and cost-effective solution for retailers. This is, if they are looking to optimize their returns.
This even helps bulk buyers and liquidators who want to acquire products for resale or personal use.
By partnering with Coastal Surplus Solutions, every party involved gains access to returned products. This is in addition to business expansion.
Retailers in specific gain access to instant liquidation programs. This helps you achieve cost reductions, improve cash flow, and support sustainable practices.
Contact our team today and get started on this market. We source any products and help retailers or bulk buyers regardless of the products.
It can be anything from drywall and materials for construction to nail polish or skincare for nail techs and spas, respectively.
