{"id":1346,"date":"2023-12-11T04:34:32","date_gmt":"2023-12-11T04:34:32","guid":{"rendered":"https:\/\/ladingcargo.com\/blog\/?p=1346"},"modified":"2025-01-10T09:20:32","modified_gmt":"2025-01-10T09:20:32","slug":"buying-in-bulk-returning-in-burden-the-hidden-costs-of-oversized-returns","status":"publish","type":"post","link":"https:\/\/ladingcargo.com\/blog\/buying-in-bulk-returning-in-burden-the-hidden-costs-of-oversized-returns\/","title":{"rendered":"Buying in Bulk, Returning in Burden: The Hidden Costs of Oversized Returns"},"content":{"rendered":"<p>&#8216;Tis the season for returns. As consumers send back that too-small sweater or duplicate toy, these returns represent billions in lost revenue for retailers. But for large and oversized items like furniture and appliances, returns pack an even bigger punch to companies&#8217; bottom lines. Promising Texas-based solutions aim to turn this burden into opportunity.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ladingcargo.com\/blog\/buying-in-bulk-returning-in-burden-the-hidden-costs-of-oversized-returns\/#Boxes_of_Blunders_Billions_in_Merchandise_Returns_Each_Year\" >Boxes of Blunders: Billions in Merchandise Returns Each Year<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ladingcargo.com\/blog\/buying-in-bulk-returning-in-burden-the-hidden-costs-of-oversized-returns\/#Scaling_Up_Solutions_How_Tech_Can_Turn_Returns_into_Revenue\" >Scaling Up Solutions: How Tech Can Turn Returns into Revenue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ladingcargo.com\/blog\/buying-in-bulk-returning-in-burden-the-hidden-costs-of-oversized-returns\/#The_Future_of_Returns_is_Here_Emerging_Trends_and_Texas_Impact\" >The Future of Returns is Here: Emerging Trends and Texas Impact<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ladingcargo.com\/blog\/buying-in-bulk-returning-in-burden-the-hidden-costs-of-oversized-returns\/#Clearing_Clutter_and_Creating_Value_at_the_Border\" >Clearing Clutter and Creating Value at the Border<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Boxes_of_Blunders_Billions_in_Merchandise_Returns_Each_Year\"><\/span>Boxes of Blunders: Billions in Merchandise Returns Each Year<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Consumers will send back over $816 billion in returns in 2022 alone reports the National Retail Federation. Yet these staggering sums represent only part of the picture. Once reopened and damaged goods get factored in, returns account for nearly 6 billion pounds of landfill waste yearly according to Optoro.<\/p>\n<p>With bulky items especially, costs as well as reverse logistics expenses pile up. And damage rates climb each time a reuse winds its way back through delivery hands. In uShip\u2019s recent survey of retail executives, a full 91% dubbed these oversized return costs a significant pain point.<\/p>\n<p>\u201cWhat I took away was that 87% are struggling with returns,\u201d said UShip CEO Heather Hoover-Salomon. \u201cLarge and bulky goods, once they\u2019re out of the box, predominantly, they don\u2019t get put back in a box.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Scaling_Up_Solutions_How_Tech_Can_Turn_Returns_into_Revenue\"><\/span>Scaling Up Solutions: How Tech Can Turn Returns into Revenue<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Without reusable packaging, these open-box nightmares struggle to retain their original value. Over half of execs admitted they failed to resell up to one third of returned oversized merchandise.<\/p>\n<p>Yet within this hassle lies an opportunity: to reimagine sustainability measures while recovering revenue. The uShip report outlined key solutions from AI to improve delivery tracking. But packaging ranked high among suggestions.<\/p>\n<p>Specifically, reusable and durable containers maintain integrity amidst returns\u2019 winding journeys. For Hoover-Salomon, point-to-point shipping helps here too. \u201cBecause our service can be highly customizable in terms of packaging, there\u2019s a higher probability of getting a higher return value.\u201d<\/p>\n<p>Tech can further help retailers resell, not waste, their reopened inventory through enhanced visibility and coordination. Optoro\u2019s platform, for instance, leverages AI to instantly assess returns and route them to the most profitable downstream option. Last year alone they gave nearly 180 million returned items a second life.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Future_of_Returns_is_Here_Emerging_Trends_and_Texas_Impact\"><\/span>The Future of Returns is Here: Emerging Trends and Texas Impact<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Beyond packaging and platforms, shifting consumer preferences continue to mold the returns landscape. Experts predict rising rates as more spending moves online and economic uncertainty lingers.<\/p>\n<p>Plus supply chain snags induce even more buyer\u2019s remorse. \u201cThere are more returns because people take longer to get what they purchased,\u201d Hoover-Salomon explained. \u201cSo that time and gap impact their satisfaction with the product.\u201d<\/p>\n<p>Retailers must balance customer service with squeezed margins, especially amidst oversized items\u2019 inflated costs. Some restrict bulky goods returns altogether. Others increasingly offer pickups and drop-offs of opened merchandise to sidestep shipping scrapes.<\/p>\n<p>Pressure likewise mounts to prevent waste and keep products profitably circulating in the supply chain. Startups are responding to market needs across recycling, resale, and rental models around reusable goods. Venture funding poured over $2 billion into these circular economy companies just last year, says Closed Loop Partners.<\/p>\n<p>Texas aims to steer these emerging trends from the ground up. UShip and fellow Austin transport tech KeepTruckin both landed spots on this year\u2019s CNBC Disruptor 50 List for their innovations shaking up logistics. Ware2Go\u2019s tech-based warehouse network out of Houston helps retailers dynamically handle overflows with heightened returns.<\/p>\n<p>And the new McCarthy Capital-backed Venue Returns in Dallas equips small and medium businesses with cost-efficient, customized returns processing. Their recent $10 million seed funding attests to investor confidence in the over $100 billion market for returns management.<\/p>\n<p>With Venue\u2019s tech-powered, merchant-branded experiences, CEO Matt McDonough sees significant potential to \u201chelp retailers large and small turn returns into revenue\u201d right from the Lone Star State.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Clearing_Clutter_and_Creating_Value_at_the_Border\"><\/span>Clearing Clutter and Creating Value at the Border<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Beyond bold visions, tangible infrastructure investments along Texas\u2019 southern border support improved handling of the ballooning returns market. These developments promise sustainability and scalability for shippers and carriers navigating intricate cross-border flows.<\/p>\n<p>The CIL Group broke ground this fall on their Nearshoring Industrial Park in McAllen, TX. The 117-acre, build-to-suit property caters to manufacturers moving production back near US borders. Streamlined receiving and distribution of returned goods feature among intended site benefits as production shifts closer to home.<\/p>\n<p>Likewise expanded capacity along the Gulf aims to capture surging volumes of resale and recycling passing through Houston. Tigerhawk Logistics recently leased 135,000 square feet of customizable space with truck access at Portside Logistics Center. The million-square-foot buildout by Stream Realty affords room for the region\u2019s logistics footprint to stretch.<\/p>\n<p>Though returns pose complex challenges \u2013 and billions in losses \u2013 creative solutions promise more sustainable and profitable ways forward. As consumers send back this year\u2019s holiday haul, innovations in reusable packaging, advanced processing, and domestic infrastructure could together turn Texas into a return destination. Where reopened inventory once cluttered landfills, emerging trends may fuel regional jobs while unlocking returned goods\u2019 full value.<\/p>\n<p>By leveraging their expertise and resources,\u00a0<strong><a href=\"https:\/\/ladingcargo.com\/\">Lading Logistics<\/a><\/strong>\u00a0aims to provide efficient and reliable international shipping and logistics solutions for their clients.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8216;Tis the season for returns. As consumers send back that too-small sweater or duplicate toy, these returns represent billions in lost revenue for retailers. But for large and oversized items&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2227,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[131],"tags":[],"class_list":["post-1346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Hidden Costs of Oversized Returns<\/title>\n<meta name=\"description\" content=\"With returns piling up this holiday season, Texas companies like uShip and Venue pioneer ways to resell items rather than landfill them.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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