Trump tariffs lead retail to rush returns, items back to resale market
Since the cost of President Trump’s tariffs increases the prices of goods, retailers accelerates the return process, which they quickly hurried to the sales market as quickly as possible.
The segment of the supply chain responsible for the rapid return of feedback is known as the inverse logistics that retailers control the returned products and determine whether they can be sold, repaired or recycled or recycled. The more efficiently a retailer can manage the reverse logistics process, the faster the product can be re-sold-at full price or at the store’s output channels.
Refunds are the source of inventories of the items that have already paid tariffs. As a result, “it is useful for retailers to take back the goods to the stores”, Return Management Software Company Optoro’s Operation Officer Casey Chrous. “The average of 30% of the purchase price of the processing costs. Refunds can be an important salvation for companies to keep the costs low. Tariffs make new goods more expensive.” He said.
Chrous, over three -quarters of shoppers, more retailers to address the consumer with price awareness will directly buy trade products, he said.
“Retailers invest in fixing goods with small damage and defects.” He said. “Most of the major retailers either operate or think of some of these programs. In fact, 63% of retailers are already operating or a second -hand channel.”
According to Optoro, more than 85% of the returned goods are required to be returned to retail shelves for re -sale, but electronics have a lower ratio.
The National Retail Federation envisaged total return for the retail sector to reach the retail sector. 890 billion dollars In 2024.
According to the Alix Partners, the inverse logistics industry is experiencing significant growth in 2024 to $ 150 billion in the United States and growing faster than GDP and the predicted compound annual growth rate is between 6-8 and 2030%.
DHL supply chain among the best players in the field, Fedex– POWER SUPPLY– XPO– Kuehne + Nagel International AG, DB Schenker, Ch Robinson worldwide– Ceva Logistics– RYDER SYSTEM, And Geodis.
The prevalence of online sales parentheses – with the tariffs that the consumers will buy two to three of the same element in several dimensions and colors, and then return what they don’t want – with tariffs, he said.
The sales market is also growing again. The luxury digital warehouse company Stok has seen 74% (350,000 sku) expansion of the pre -hand inventory in the last three months.
“Re -sale is not just a story of sustainability,” said Roy Lugasi, founding partner and CEO of Stock. “Modern retail sales become one of the most important growth driving forces. Suppliers, especially in the front -hand area, are looking for global distribution quickly and smoothly.”
Lugasi, not a phenomenon that is limited to the goods sold in the US, said that more than 60% of the re -sales supply on the platform is supplied globally. Online retailers cannot be accessed due to logistics, customs and compatibility difficulties.
“For most retailers, a re-sales or excess programs launch takes 60-90 days (if domestic), and often impossible in the international arena. With the stork, this timeline falls to several days independently of the location,” he said, indicating the digitalization of the platform that improves and distributes the use of artificial intelligence and the digitalization of the platform.
Chrous said that retailers and brands could reduce purchasing up to 15% by taking advantage of returns as an inventory source. Customers using Optoro for feedback add the highest return on clothing, shoes and accessories with an average of 10-35%income. The faster the refunds are processed, the faster these products return to the market to be sold.
