What happens to returns that are no longer saleable?

Not every return is put back on the market. You determine in advance who decides whether a return is resalable. What happens next is not a logistical decision but an agreement you make in advance. There are roughly three options, and it’s wise to choose which one you want for each product group.

Back to You

The item will be set aside and sent to you periodically. This makes sense for high-value products that you want to evaluate yourself, have repaired, or can still sell through an outlet. Agree on how often this will happen, because sending a box every week is more expensive than a consolidated shipment once a month.

Set aside in the warehouse

The item will remain in a separate location, outside of your sellable inventory. This is useful if you don't yet know what to do with it, or if you expect to find a use for it later. Keep in mind, however, that inventory that remains in storage still takes up space.

Destroy

For products that cannot be returned for hygiene reasons, or whose value is less than the cost of returning them, destruction is often the most practical choice. This is an agreement that you should explicitly document, because it involves your property.

Do the math

Online stores almost instinctively opt for “return to me,” but that isn’t always the cheapest option. Weigh the shipping costs, your own time, and the likelihood that you’ll still be able to sell the item against its value. With inexpensive items, the bottom line often turns out differently than you might think.

Arrived damaged

If an item arrives at the customer’s location damaged, that’s different from a regular return. Make a note of whether you want to track these separately so you can determine whether the damage was caused by the packaging or during shipping. You’ll lose that distinction if everything gets lumped together.

Shelf Life

For products with an expiration date, there’s an additional consideration: an item may be undamaged but still unsellable because the remaining shelf life is too short. Agree on the timeframe you’ll use for this.

Include it in the agreement

What happens to unsellable returns is part of the agreements you make, not part of day-to-day operations. Put it in writing, so no one has to think about it on a case-by-case basis, and you’ll know exactly where you stand.

Take a look at it every now and then

The pile of unsellable returns is a good indicator. If it’s growing, there’s usually something wrong with your product information, your packaging, or your sizing. You need to fix that upfront, not in the warehouse.