Amazon Prime Day, a global shopping event exclusive to Amazon Prime members, is known for its unbeatable deals and massive sales. However, what many don't realize is the significant impact this event has on the retail return landscape. This article explores the aftermath of Prime Day and how it shapes the market for returned items, particularly for businesses like ours that specialize in selling these goods.
The Prime Day Effect: A Surge in Returns
Prime Day's attractive deals and discounts encourage consumers to make impulsive purchases. However, this often leads to an increase in buyer's remorse, resulting in a surge of returns following the event. Online sellers can expect return rates to increase by 20-30% during Prime Day. Other than that, the increased order quantity leads to more returns in general since there are more people placing orders.This surge is not just a challenge for retailers but also presents a unique opportunity for businesses dealing in returned goods.
This surge in returns is driven by several factors. Firstly, the sheer volume of transactions during Prime Day naturally leads to a higher number of returns. Second, the nature of online shopping, where customers cannot try or physically inspect products before buying, contributes to this increase. When purchasing online customers tend to occasionally be underwhelmed or disappointed by a product's appearance or functionality when they see it in person. Lastly, the ease of Amazon's return policy also plays a role in encouraging customers to return items they are not completely satisfied with.
The Second Life of Returned Goods
Returned items, especially those from Amazon, often find their way to secondary markets. These items, although returned, are typically in excellent condition, some even unopened. Businesses that specialize in selling these returned goods can capitalize on the influx of returns post-Prime Day. The increased quantity of returns typically overwhelms Amazon sellers which allows for better discounts on their returned inventory. these products are offered at discounted prices, providing a win-win situation for both the business and the consumer.
When purchasing a returned item the business benefits by recovering revenue from the initial return and associated fees and by clearing up warehousing space. Due to the discounted prices the consumer gets to enjoy saving 20-50% on their expenses which leads to great long term cost savings. On top of this, the environment benefits from the recycling of a fully functional product with little to no use. Now, instead of producing a new item with new resources consumers can take advantage of pre existing ones which in turn reduces the carbon footprint required for manufacturing.
The Role of the Return Retail Industry in the Returns Landscape
The return retail industry plays a crucial role in this ecosystem. These businesses source most of their inventory from retail returns, offering a wide range of products at significantly reduced prices. The surge in returns following Prime Day allows these businesses to replenish their stock and offer consumers an even wider selection of products. This influx of goods also allows the industry to diversify its offerings, ensuring that there is something for every customer in the secondary market. With the increased number of returns, businesses are desperate to clear out that space to replenish it with new items to sell. With that in mind return retailers can take advantage of this circumstance and possibly acquire the items for an even lower cost than per usual.
Amazon Prime Day is more than just a shopping extravaganza. It's a catalyst that sets off a chain reaction in the retail world, leading to a significant surge in returns. This surge, while a challenge for some, is a golden opportunity for the return retail industry. It's a chance to source high-quality goods at lower prices and to provide consumers with a diverse range of products at bargain prices.
As we navigate the aftermath of Prime Day, we invite you to explore the world of returned goods. Whether you're a bargain hunter looking for your next great find, or a reseller seeking to diversify your offerings, the surge in returns post-Prime Day is an opportunity not to be missed.
Visit Boxed Returns today to discover the hidden gems in the world of returned goods. Let's turn the aftermath of Prime Day into a celebration of great deals and fantastic finds.