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Personal experience. I've built out numerous supply chains. One of my favorite anecdotes is that Best Buy used to pay for 1000 units, but require us to ship the
by bunnie 5y ago
Personal experience. I've built out numerous supply chains. One of my favorite anecdotes is that Best Buy used to pay for 1000 units, but require us to ship them 1020 units. And the factories always agreed to it because the alternative was paying for reverse logistics on any return. Basically it was always cheaper to send 2% extra, free of charge, in the forward direction than any risk of handling a return in the other direction. Everybody wins - the factory pays less in the end for warranty service, and Best Buy gets a 'no questions asked' return policy without paying for it. That's also why you'd see the 'as is' racks at best buy... those were the returned units. Wasn't worth it to send them back to the factory, just sold at half the price with no returns allowed.
If you still don't believe me, go to Fedex.com and quote the price to ship a large screen TV from your home to Shenzhen.