Industry Insights From Renewal Logistics:

3 Parts of a Re-commerce Program

We know that apparel brands are susceptible to high rates of returns. However, there is a way to reclaim potentially lost revenue. The answer to this issue and more is known as a Re-Commerce Program.

What is a Re-Commerce program?

A Re-Commerce program is a system set in place by apparel brands to recoup potential lost revenue due to high return rates.

Where do goods come from that will be considered for a Re-Commerce Program?

If you are an apparel brand then you understand returns are just a part of the business. These return rates can be as high as 50%. So is there a way to recoup lost revenue while simultaneously increasing brand loyalty. Yes, there is!

3 Components of a Re-Commerce Program

1. The Grading Program
It’s important to understand what condition the returned item is currently in. And does the item a high enough quality to invest time, money, and effort to bring back to first quality?

2. Refurbishment
You don’t want to spend more money on an item to prepare it for resale than its potential to generate revenue. We have found most returned items will just need to be steamed and placed into a new poly bag. The last thing you want is for your customer to question whether the item they received is first quality or not. If the item doesn’t qualify as first quality do not waste time on the refurbishment process. You are better off handing these items over to an off-price seller such as TJMAXX or Marshall’s

3. Disposition
Where does all the inventory go once the grading and refurbishment components have been applied? If it’s first quality it will go back into stock to be sold again, second quality will be distributed to an off-price seller, and recommence will go back on your website. For inventory that doesn’t make the mark you have the option to upcycle, downcycle, recycle and donate.

Looking For More?

If you ever want to chat with our existing clients, many of them we have NDAs with, so I can’t share their names on the website or in our newsletter, but I assure you, you’ve purchased product from them,  and if you want to verify our consistency, accuracy, and ability to handle complexity with ease, they’ll be happy to talk to you.

Renewal Logistics_logo (1)
Subscribe to our newsletter.

Keep up with the latest industry insights.

*By signing up you agree to receive emails from Renewal Logistics.