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The Washington DC Based logistics company Optoro has raised $75 Million in funding. The firm helps both online and offline shops to resell their excess inventory thus avoiding loss.
Do we actually need such a service? Well if we analyze the data provided by the National Retail Federation which states that, almost 10% of total merchandise was returned last year worth $351 Billion, we can easily come to a positive conclusion. We badly need such a service that can make sure every merchandise is sold.
Similarly, a good returns experience motivates buyers to buy from a shop again. In fact, according to a survey carried out by Optro itself, revealed that 71% of buyers are likely to come back to a store if they get a positive returns experience.
Benefits Of Reverse Logistics
This helps in two ways. The companies with excess merchandise at the end of the business cycle can avoid incurring huge losses. And on the other hand, as no merchandise is thrown away before making their way into the store shelves, the environmental benefits are equally felt.
Optoro’s specialized software help firms manage sales returns and resale them. According to the firm’s Co-founder and CEO Tobin Moore, online stores experience sales return two to three times higher than physical stores do. And the figure is even higher for fashion and apparel stores.
Previously many brands produced exactly the amount that they could sell, or at least projected could sell. But as more and more shops are going online, many brands are intentionally keeping excess inventory. This makes reverse logistics more and more important.
Optoro’s SmartDisposition engine uses AI and proprietary algorithms to route returned and excess inventory to its next best home.
Optoro is experiencing many key market players getting behind their back. The newest funding round was led by Franklin Templeton Investments.
At times, we come across certain tech inventions that can be both a blessing and a curse. However, it would not be justified to judge an invention without actually implementing it to solve real-life problems. Amazon’s Rekognition is such an invention. It can help restore social security, but at the same time, it can also pose a great privacy concern for citizens. But don’t jump to a conclusion already. Read the entire blog and then form an opinion.
Here is a quick blog on Amazon Recognition and how Pinterest is using it. And make sure you come back for more.