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Dynamically Generate Promotion in a Region for the Unopened In-transit Returned Items in the Region

IP.com Disclosure Number: IPCOM000249208D
Publication Date: 2017-Feb-10
Document File: 2 page(s) / 26K

Publishing Venue

The IP.com Prior Art Database

Abstract

When a return is initiated by a customer, determine, based on the return reason, whether the item in return is an unopened item, and then, if the item is an unopened one, dynamically generate a promotion on the item for the customers in the region, and then lastly, if/as required, notify an appropriate set of customers about the generated promotion.

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Dynamically Generate Promotion in a Region for the Unopened In -transit Returned Items in the Region

This article is around the state/condition of the items returned by customer. Basically, the items that carriers collect from customer can be closed/unopened box or open box. In order to help retailers reduce/avoid the overheads of the returns process, the article presents an solution to use pricing and promotion engine to promise and deliver unopened items (to some other customer) even before the carrier brings them back to the return center (of the retailer).

Problem 1: Returned inventory, in spite of being in the best condition (unopened box), is blocked for few days while being in transit to the return center. After return center receive the returned inventory, it is further blocked for some more time depending on the quality check process at the return center. Due to this retailer lose selling opportunities which results in revenue loss. The revenue loss hurts retailer more when the returned item is a hot one.

Problem 2: The retailer has to pay the carrier for the reverse logistics of even the best condition returned items, which becomes the financial cost (of return) to the retailer. This cost depends on the contract between the retailer and carriers. Generally, the cost is calculated based on the distance, inter-state transportation and volume/weight of the returned items.

Problem 3: While receiving even the best condition returned items at the return center and doing the quality check, retailers have some operational cost as well.

Note: The return rate is higher when customer chooses (while placing the sales order) to make the payment on delivery, and most of such returns include best condition items. For example, in India, cash-on-delivery (COD) is a very popular payment method and return rate of COD orders is higher than the one of paid orders.

When a return is initiated by a customer, determine, based on the return reason, whether the item in return is an unopened item, and then, if the item is an unopened one, dynamically generate a promotion on the item for the customers in the region, and then lastly, if/as required, notify an appropriate set of customers about the generated promotion.

Few, but not all, examples of return reasons, when the items are closed/unopened box, are:

a) Items not delivered because customer rejected to take the delivery due to change of mind. This scenario is very common in case of payment-on-delivery.

b) Items not delivered because customer not fo...