Startup Retourplaza launches a cloud software product that allows online shops and logistics service providers to determine the residual value of their returns.
Retourplaza, which has been giving returns a second chance since 2015, has itself been using its intelligent software to receive and assess returns for years. Now it is launching for other companies the SaaS translation of this software, called GRADR. "Returns cost time and money," says founder Jan Minnee about GRADR. "We make sure those two components are reduced to the minimum. We enable webshops with the data generated by GRADR to make returns with substantially damaged packaging, for example, still generate a return of up to 85 per cent of the retail price. With a few simple clicks and photos in our Grading app."
Determining residual value of returns
According to Retourplaza, most online shops and logistics service providers do have the returns process and customer service in place. However, when a parcel is returned, each item has to be assessed individually. This is often done manually, with the outcomes being 'new' or 'not new'. "The latter category is rapidly increasing in volume and value and has an incredible number of variations per item that determine the residual value," the company says in a press release. "For example, whether the item has damage, has been used or has been returned incomplete. This is precisely where GRADR's foundation lies. By assessing each item as unique, a higher value can be generated."
'Side right: small scratch'
Giving the next buyer maximum information means the item is sold faster, Minnee believes. "After all, every buyer wants to know where they stand. Descriptions such as 'this item may have a possible damage' do not work in this. Precisely a description such as 'Side right: small scratch' with corresponding photos and price result in a much higher return. Our software generates this content."
According to Minnee, interest in second-hand products or second-chance returns is rising sharply. "Every percent a web shop can receive more for its returns is direct profit. We make that possible with GRADR and that margin is very welcome in our industry."
Data-driven instruction
Companies using the software technology can start using it without a link. A standalone GRADR App for desktop and mobile takes care of the necessary registration in the warehouse. Among other things, the order information, the reason for the return, as well as determining the unique condition automatically create a description with accompanying photos. The algorithms recommend the price and the platform includes business rules for automatically classifying the desired sales channels.
Employees operating the app in the warehouse will receive a data-driven instruction for the return, detailing what to do with the package based on the algorithms and desired return process. Minnee: "Our customers get all possible data at a glance that combines, among other things, the reason for return with the 'unique truth in the box'."
GRADR users pay a fixed price per return for the software. Some online shops and logistics service providers are already said to be using GRADR.
