We’re excited to announce our partnership with Karhu, the Finnish footwear brand known for its craftsmanship, innovation, and iconic designs.
Karhu Renewed, the latest resale business powered by Archive, is designed to extend the life of the brand’s footwear by reselling lightly worn or like-new products. Rather than letting customer returns sit unused in backrooms, Karhu products purchased through their exclusive wholesaler or on the brand’s direct-to-consumer website in the US will be listed on Karhu Renewed, recirculating high-quality inventory that would otherwise have been discarded or left untouched.
The rapid growth of e-commerce over the last decade—particularly during the pandemic years—fueled an increase in customer returns. The average return rate for online transactions is 15%, three times higher than the rate for in-store purchases. As a result, brands and retailers across apparel and footwear are facing higher logistics costs. The annual retail value of returned goods in the U.S. is said to be approaching a trillion dollars.
When customers return items, companies lose the initial sale revenue and incur costs related to processing the return and handling potential damage to the product. In cases where brands unload returns to liquidators—a common solution—they often earn just 20% of the original retail price. Returns also contribute to environmental waste; a number of retailers choose to ship unwanted inventory abroad or trash returned products all together, adding to their carbon emissions.
While brands typically can’t sell returned products at their full retail price, resale offers an avenue for recapturing revenue that would be lost otherwise. This is especially true for companies like Karhu that make high quality products designed to stand the test of time. If, for example, a customer tries out a pair of Karhu sneakers and decides the size isn’t right, that lightly-worn pair of shoes still has years of value with another buyer.
Through Archive’s custom Warehouse Management System, Karhu can now efficiently track, process, and resell returned products—unlocking a substantial new revenue stream while optimizing returns management. Karhu products returned to their exclusive wholesaler or the direct-to-consumer website will be processed by Tersus Solutions, an Archive partner that offers a full suite of textile reclamation and resale logistics services, including cleaning and repairs.
Karhu Renewed introduces a scalable resale solution, setting an example for other brands looking to navigate wholesale partnerships and returns management while unlocking a new revenue opportunity. In addition to solving for the returns challenge, Karhu Renewed will help the brand enhance customer engagement and meet its sustainability goals around waste reduction and carbon emissions.
Are you curious about implementing a scalable, profitable returns solution for your brand? Reach out to our team at info@archiveresale.com
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