LuxUrux
Returns Worldwide enhanced the returns and revenue recovery process for LuxUrux, helping them streamline their operations, concentrate on primary sales, and transform their returns process from a cost-centric issue to an opportunity for revenue recovery.
The Challenge
LuxUrux, a seller of high-volume household bath mats, needed to lower their return rate. Traditionally, they considered returns as an inherent cost of conducting business in the e-commerce space. However, as their return rates reached 8% of gross sales, LuxUrux realized the significance of engaging with a reliable third-party logistics (3PL) provider to enhance their returns management.
After meeting with Returns Worldwide, an alignment of objectives laid the foundation for a collaborative partnership aimed at maximizing backend revenue while empowering LuxUrux to maintain its focus on forward-looking sales, all while reducing its return rate.
The Solution
LuxUrux streamlined their returns process by redirecting customer removal orders straight to Returns Worldwide through Amazon Seller Central. This adjustment ensured returned items were sent directly to RWW facilities, bypassing LuxUrux and greatly simplifying their return process.
LuxUrux was also given access to Returns Worlwides’s proprietary software, which allowed them to monitor their inventory and sales analytics in real-time, around the clock. Other than functioning as a client portal, this software also serves a vital role in our end-to-end solution, covering everything from the receiving, inspecting, grading, and relisting of returned products.
The Outcome
With the establishment of its new reverse logistics channels through Returns Worldwide, LuxUrux found itself better positioned to concentrate on its core competencies and continue scaling its business. The adoption of RWW’s returns management solution enabled distinct, measurable enhancements in their operations:
Effective Return Rate
LuxUrux was grappling with a high return rate of 7.93% before engaging in our services. The revised returns process led to a recovery of 5.58% of their total sales, which in turn led to an effective return rate of 2.35%.
Recovery of Returned Units
Of the 16,439 units returned by customers, LuxUrux, in collaboration with Returns Worldwide, successfully recovered revenue from 12,072 units. This significant recovery was facilitated by our systematic processing, inspection, grading, and relisting of returned items for resale.
Revenue Recovery
LuxUrux experienced a notable boost in its revenue recovery. From the total of $412,175.46 returned by customers in 2022, they were able to recover $290,090.62 in value from those returns.
n summary, the enhanced returns and revenue recovery process helped LuxUrux streamline their operations, concentrate on primary sales, and transform their returns process from a cost-centric issue to an opportunity for revenue recovery.
