Debunking the Myths of Customer Returns and the Use of Liquidation Channels

Myth No. 2: Returns should be aggregated in a central location, processed cheaply and held to sell in bulk.
Reality: Lean engineering optimizes net recovery and sales-cycle time.

Managing returns is not, nor should it be, the core competency of retailers. The operational execution behind a return traditionally has been an afterthought. The practice of stashing returned items in a central warehouse is common. This practice almost always creates an unnecessary drag on a company’s financial performance, however.