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Should returned goods be refurbished or liquidated?
Compare recoverable resale proceeds with refurbishment, testing and reverse-freight costs.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Returned units / year
- 10,000
- Units suitable for refurbishment
- 65 %
- Net resale proceeds / refurbished unit
- $80
- Refurbishment & testing / suitable unit
- $25
- Liquidation proceeds / unit
- $12
- Extra logistics cost / suitable unit
- $8
Annual refurbishment advantage
Example result only, not a forecast or promise.
- Units selected for refurbishment
- 6,500
- Net advantage / selected unit
- $35
- Cash spent on refurbishment & logistics
- $214,500
What to do with this result
Inspect safety, warranty and resale-channel constraints; unsuitable units remain on the liquidation path.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Refurbish advantage = returned units × suitable share × (resale proceeds − refurbishment − extra logistics − liquidation alternative).
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Demand, lead times and service levels are scenario inputs. Validate variability, physical constraints and supplier terms before ordering.