Returns? Here's how to avoid writing them off 100%

Returns are a headache for many merchants. Items that are returned cost money, time and energy. And often they are written off 100% without further inspection. A shame, because there is usually still value to be gained - even with opened packages or slightly damaged boxes.

In this article I share practical tips on how to still get turnover out of them.

The biggest mistake: writing off returns too quickly

Many returns are immediately written off as soon as something seems wrong: the packaging has been opened, the box is damaged, or there are slight signs of use. But such a product is often still fine to sell.

It's all about expectations. As long as you communicate honestly and clearly about the condition of a product, many customers are willing to accept a little damage. Large online stores like Coolblue offer such items as Second Chance, others use terms like Open Box, Return Deal or Slight Damage. Transparency and a decent price make it attractive for the customer and perhaps still profitable for you.

Below are a few tips you can apply to your returns as a webshop:

1. Create a 'Second Chance' category on your website.

Create a separate page where you offer return products with minor damage or opened packages at a reduced price. As long as you are honest about the condition of the item, there is a large group of buyers looking for this very thing.

2. Work with quality grades (A/B/C quality).

Not every return item needs to be "new condition" to still be saleable. Use an internal classification:

• Like new, tested and good
• Minor damage or opened packaging
• Visible damage, but technically sound

This way, you make quick and clear choices when processing returns and offer your customers transparency. For example, you can choose to offer only A and B returns on your website.

3. Sell returns in bulk to a buyer

Assessing, processing or reselling returns individually is time-consuming. By collecting returns temporarily, you create an overview and can process them more efficiently or offer them to a buyer. Note: the better you sort and describe, the greater the chance of a good return.

5. Process returns quickly and in a structured way

The longer returns lie around, the greater the loss of value. Therefore, ensure:

• A quick initial check upon arrival
• A fixed checklist for assessment
• Regular batch processing in your logistics
  

This will prevent returns from disappearing somewhere in the back of the warehouse and being written off unnecessarily.

6. Think creatively about residual value

Some returns have surprisingly high value - not only financially, but also strategically. For example, consider the following options: :

• Donations with marketing value
• Contests or giveaways
• Alternative sales channels such as marketplace or auctions

Even damaged products can still be valuable - if you use them in the right way.

Finally: less depreciation = more margin

It's tempting to quickly dismiss returns as lost margin. But with a structured approach, smart reselling and a little creativity, you can avoid writing off 100% of a return item immediately.

And don't have the time or capacity to do that? Then working with a buyer like StockPartner can be the solution. You save space, time and aftersales, while still getting value out of your returns.

Every return counts. So don't let it go to waste.

Jan Peter LinstraBackofficeStockPartner.nl