Introduction

Olivia, the owner of a popular pet brand, faced a unique challenge in her business. Specializing in pet toys, her products were experiencing high return rates. Initially, these returns were not a significant concern. Olivia had opted for Amazon’s destruction policy for returns, where Amazon either liquidated or destroyed returned items. This decision was partly influenced by her frequent travels and lack of adequate storage space for returns.

Challenges

Over the years, Olivia’s business dynamics shifted. Selling fees increased, fulfillment costs doubled, and advertising expenses rose, squeezing her profit margins. The return rate for some SKUs was as high as 6-7%, but with high sales volume. What was once a marginal issue started impacting her bottom line significantly.

The SKUPREME Solution

Olivia turned to SKUPREME for a solution. SKUPREME’s platform allowed her to centralize her entire product catalog across multiple marketplaces, offering a comprehensive view of her business operations.

1. Centralized Returns Management:

Olivia routed all returns to her third-party logistics (3PL) provider, efficiently managing them through SKUPREME.

2. Categorization of Returns:

Her 3PL could now categorize returns into damaged goods, refurbished items, and those in perfect condition.

Results and Impact

1. Reduced Losses:

Only 3% of the returned products were unsellable, substantially reducing the loss on returns.

2. Increased Revenue:

The efficient reprocessing and resale of returns contributed to an additional revenue of $100,000 for Olivia’s business.

Conclusion