Returns impact in retail industry
Watch the video about the Ryder Returns Solution as well as complete the readings for the week.
This Ryder Returns Solution video is on YouTube.
Using these perspectives, describe how returns impact the retail industry as a whole. What are
some of the costs associated with returns on today’s retailers?
RLMT630 WEEK 7 FORUM 2
RLMT630 Week 7 Forum
Retailers get goods from manufacturers and avail them to consumers. They can also buy
products from distributors, go-betweens, or wholesalers, depending on convenience and
availability of commodities. The retail sector is vital to the economy, and it generates revenue
used to run the country. It supports the wholesale industry and consumers by providing a way
for them to get products. Retails make money when they raise prices of commodities above the
actual cost of labor, distribution, and equipment used. Thus, it is vital for retailers to increase the
cost of products to make meaningful sales. Returns affect the retail industry as a whole by
determining whether retailers will make more sales or losses (Ryder, 2012).
The initial cost of products determines retail returns. Retailers can make more money by
buying goods directly from factories instead of getting them from wholesalers. This allows them
to save cost they would have spent on getting products from go-betweens; enabling them to get
goods at lower prices and sell them high prices. The price increase is a profit margin retails make
when they sell products to consumers. It is double the cost and is required to pay business
stockholders. Retailers are putting more attention on resources to change logistics as they look
for ways to get value for products. Retails face numerous challenges such as malfunctioning
products, poor quality, and repairs that affect sales. Dealing with problematic areas will help
them make more returns and improve the industry. Some of the costs associated with returns in
today’s retail are sourcing new products, replacing returned products at the expense of a retailer,
and low returns as a result of replacing returned products (Ryder, 2012).
RLMT630 WEEK 7 FORUM 3
References
Ryder. (2012, April 27). Ryder’s Reverse Logistics Solution.
