3 Ways Retailers Benefit from Donating Excess Inventory and Returns

Aug 24, 2023
Chai NadigFounder, CTO

Online and brick-and-mortar businesses can’t escape returns. Whether due to size discrepancies, style preferences, defects, or straight-up returns fraud, returned items can pose a significant challenge for retailers to manage efficiently. There's a sustainable and socially responsible alternative to dispose of returns and excess inventory in landfills.


1. Boost Brand Reputation and Customer Loyalty

Consumers care about corporate social responsibility and environmental impact, and retailers who prioritize sustainability tend to capture more loyal customers. By choosing to donate returns to nonprofits, charities, shelters, or community organizations, retailers can establish themselves as socially responsible entities committed to making a positive impact beyond profits.

When customers view a retailer in a positive light, it increases their attractiveness to sustainability-minded consumers. This can lead to increased customer loyalty and attract new customers who want to support like-minded brands. In competitive sectors, where brand perception is pivotal in shaping purchasing decisions, enhancing reputation through donations can be a strategic advantage.

2. Create Cost Savings and Enjoy Tax Incentives

Here’s the big one: money. It costs retailers more to landfill an item than it does to donate it through LiquiDonate—and the cost of shipping, handling, storing, and transiting merchandise to landfills can add up fast. By choosing to donate excess inventory instead, retailers can cut costs for waste management and disposal. Businesses can then redirect cost savings toward other initiatives, amplifying the positive impact of the donations.

Similarly, retailers can claim tax deductions for their donated items, effectively reducing their tax liabilities. This can translate into substantial savings, especially for larger retailers with significant volumes of returns. LiquiDonate also makes it easy by providing a donation tax receipt for each donation, right in the user’s dashboard. It’s simple, fast, and saves money.

3. Strengthen Employee Engagement and Satisfaction

Just like consumers, employees care about their employers’ social standing. It’s no surprise, then, that morale and engagement are crucial factors that influence a company's overall productivity and success. When employees see their workplace contributing to meaningful causes, it fosters a sense of pride and engagement. Retailers that prioritize donating excess inventory and returns foster a stronger sense of community within the organization.

As retailers navigate managing the returns process and moving excess inventory, making the shift from landfilling to donating is both financially and socially sound. However, the logistics of implementing a donation program can be overwhelming to many retailers—but LiquiDonate makes it super simple.

LiquiDonate offers retailers a convenient and cost-effective solution for donating excess inventory and returns. With our user-friendly platform, nonprofit-matching algorithm, and expertise in logistics, we streamline the donation process, helping unsellable items find their way to those in need instead of being wasted in landfills.

By partnering with LiquiDonate, retailers can effortlessly amplify the positive impact of their donation initiatives while also reaping the financial and reputational rewards.

Ready to see how easy—and cost-effective—it is? Let’s talk.


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