Returns are a headache for many distributors. With limited product margins, if returns cannot be reduced and controlled, all the hard work may be in vain. It's normal to have returns when there are shipments, but how to effectively reduce and control them? Here are 12 tips based on personal experience.

1. Choose products that match local consumption habits

For example, consider the size, packaging, and price. Some markets sell better with bulk items, others with large packages, and others with low-priced products.

2. Use different assessment methods in different periods

For instance, winter is the off-season for beverages, so it's better to adopt a salary structure with high base pay and low commission, focusing on market development rather than sales volume. Summer is the peak season, so a low base pay and high commission structure is suitable, with sales volume as the main assessment. This prevents salespeople from overstocking to meet targets and causing returns.

3. Understand the sell-through performance of each outlet

Stores with good sales can take more stock, while those with poor sales should take less or none.

4. Check the customer's warehouse inventory before delivering

Delivering without checking inventory ultimately harms the distributor's interests. I've visited many markets and seen large quantities of unopened cases returned, which is the result of salespeople not checking inventory. For such returns, it's recommended to deduct three times the sales volume from the salesperson's record.

5. Visit the market frequently and ensure first-in, first-out

Don't just deliver and forget. Check the production dates each time you visit a store, placing newer products behind older ones on the shelf.

6. Set a reasonable price system and profit sharing

If prices are too high, products move slowly; if profits are too low, distributors won't push the products, also slowing movement. Slow movement leads to more returns.

7. Have a few stores with good sales and strong relationships

These stores can handle older-dated products. Returned goods should not sit in the warehouse; they must be quickly sent to these stores for promotions or clearance.

8. Adjust delivery conditions as needed

For example, consider delivering only half a case during the off-season. It may seem troublesome, but it not only sells goods and makes money but also reduces returns and losses, and creates the illusion of good product movement.

9. Do a good job with basic in-store displays

Displays should not only be large in quantity but also good in quality, and remember that "display is a resource." After delivering, don't just collect payment and leave; put the products on the shelf promptly. Even if shelf space is tight, squeeze it in.

10. Make good use of promotional gifts from manufacturers

I've visited markets and found that some distributors still have promotional gifts from our company from five years ago. It's easy to imagine that their warehouse returns are substantial.

11. Develop special channels

For example, banquet markets, prisons, bus stations, train stations, etc.

12. Choose appropriate dates for outdoor clearance events

For instance, hold outdoor events during major holidays, or take advantage of local market days to clear inventory. Returns are inevitable but can be reduced and controlled. The key is whether distributors are willing to find solutions, take measures, and implement plans. -END- Featured Content Click the title below to read directly: 14 Business Analysis Reports That Distributors with Sales Over 10 Million Must Read at Month-End, Including Table Downloads Excellent Product Promotion: The Best Learning Platform for FMCG Distributors in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly Reply with number 「1」 to view 1067 Articles Every Distributor Must Read Including 14 categories and 57 knowledge points From manufacturers to customers, covering practical operations and management All valuable content If you haven't followed us yet, please scan the QR code below Project Consultation | Promotion Cooperation Please call To join the group, click: Read Original