Chapter 13

Dealing with Losses, Theft, Damages, and Returns


check Taking precautions to minimize your risk

check Dealing with damage or loss

check Managing product returns and counterfeit goods

Product loss, theft, damage, and return are inevitable, especially when operating in the global marketplace. When selling your product to a new customer base, especially one in a foreign market, there is a strong likelihood that such incidents will increase. Your foreign sales and distribution networks are far removed from your domestic operations and networks: That added distance to market will almost assuredly add to your losses from theft and in-transit damage.

How you market your product will also have a major impact on theft, damages, and returns. If your product is sold through conventional retail stores, losses from theft will be higher. If your product is sold primarily via the Internet, expect damages in shipment to be greater.

Depending on what you are selling, returns of items purchased on the Internet can be significant. A number of recent trade studies have shown that 20 percent of many types of items purchased over the Internet are returned, and that 30–35 percent of online purchased ...

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