Returns Issues in the Consumer Electronics Industry


It’s estimated that yields cost the Consumer Electronics industry more than $10 billion yearly, and although yields are unavoidable, it is essential that a means to capture the”true” reason for product returns be developed and executed.

But let’s for a moment examine the present method of collecting reunite information from the end consumer. In the majority of cases whenever a item is returned a clerk simply asks the cause of the return, the user wanting to ease a smooth return experience only says the product”fails” the product is returned, charge is received, and both parties are happy (notably because the legitimate cost of their yield is bore by the manufacturer/distributor).

In other instances, warehouse stores which rely upon consumer histories inquire few in case any questions, concerned that a bad returns experience will cause the consumer to cancel his membership. In these circumstances the return’s clerk either marks the cause of return as”defective” or leaves the return reason completely blank; thus forcing the manufacturer to try the product to determine (or in some cases guess) the actual cause of the yield.

It is interesting to electronic manufacturing services that the CEA has recognized a new fashion in the time of yields. An analysis comparing return patterns from the year 2000 to 2002 implies that individuals are holding services and products longer before returning into the retailer, thus increasing the usage timing of this nice.

The”true” cause of the yield may vary from buyer’s guilt to displeasure with along with to even confusion about the best way best to work the item. In an ideal world producer’s helpline will be predicted if the product doesn’t work as expected. But we, as powerful and busy consumers, desire an item to be expected, directly out of their box, without the fuss and muss of calling that a technical service line.

The science of collecting accurate returns information is being developed, and by the above data it’s quite apparent that people do not have a clear picture as to why people return goods, and also retailer’s are not all that helpful in the gathering of data. It’s not necessarily the retailer’s error; as crucial questions regarding the item return could be perceived by the consumer because of a”bad” return experience and could cause the merchant to reduce this consumer (and the others which may be swayed by the disgruntled consumer). If positive data could be gathered from the yield of this merchandise it might possibly be used to enhance the consumer’s product experience or even to reduce returns.

It is a challenging issue without a clear responses, consumer’s desire choice and power, manufacturers usually do not want yields, and retailers are caught in the middle. Many manufacturers have attempted to create yields programs to cut back or eliminate product returns but those experienced marginal success mostly dependent of the rate of yield. The ability to gather information associated with product yields can result in a solid competitive advantage and a better consumer experience however in order for this to occur we must select the initial steps in collecting the critical data.