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reverse logistics company – US Market Buzz http://www.usmarketbuzz.com Nation and Economy Mon, 20 Jul 2020 16:28:22 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.23 If FedEx (NYSE:FDX), Sears Holdings (NASDAQ:SHLD), Amazon (NASDAQ:AMZN), and EBAY (NASDAQ:EBAY) Are Doing It, Would You Be A Buyer At These Prices? http://www.usmarketbuzz.com/if-fedex-nysefdx-sears-holdings-nasdaqshld-amazon-nasdaqamzn-and-ebay-nasdaqebay-are-doing-it-would-you-be-a-buyer-at-these-prices-3088 Thu, 19 Mar 2015 17:09:51 +0000 http://www.usmarketbuzz.com/?p=3088 Reverse logistics is a relatively new industry having its humble beginning back in the 70’s with dry stored items being shipped to grocery stores who wanted to max their profits and not take such devastating losses. Little did the clerks and fork-lift operators know at the time that their screw ups would ultimately be a defined and studied billion dollar industry and now the opportunity is right in front of us to take advantage of such a growing market.

Think about this, the secondary market represents nearly 3% of the overall GDP in the US…3%! Even with all of the war activity abroad, Military expenditure as a percentage of GDP in 2013 was under 4% so when you think about how much of the economy hinges on secondary markets alone, the potential for entry is massive and an investment in an early stage company could prove to be an incredible payoff in the end.

Many Fortune 500 companies like GE (NYSE:GE), Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY) are taking full advantage of what some used to call a mistake. Even stores like Sears (NASDAQ:SHLD) and Macy’s (NYSE:M) look to create revenue from items that were once discarded or simply liquidated, at extremely low prices. According to a quote by Dan Eisenhuth, executive vice president for asset recovery at GENCO Distribution System, “Retailers used to liquidate to Compensate for ‘screw-ups.’ Today they do it to stay fresh.”

Take a look at an undervalued company like Progressive Green Solutions, Inc. (OTCBb:PGSC).  This company is deep into reverse logistics and boasts some strong numbers on its balance sheet and income statement especially for being a Pinksheet company, also considered a penny stock. More importantly, the company has already begun streamlining operations.  First its decrease in COGS was directly related to the adoption of the capitalization of direct labor and packaging costs.  Second, the company realized an increase in gross revenue attributed to greater availability of inventory for sale and an addition to the sales team late in June 2014.  Finally, Progressive saw in increase in gross margin due mostly to a new supply chain of air conditioners (out of all potential products that could bump up numbers).  It will be interesting to see how this next quarter unfolds especially as this reverse logistics company continues to grow.

 

There’s no doubt that the US secondary markets offer incredible opportunities for industries as a whole to benefit from decreased waste and increased opportunity for additional revenue.  Where businesses once used unsold or returned items on their liabilities section of the balance sheet, they can now turn a profit and increase the bottom line on the income statement.  It’s been said that with any growth industry, the early adapters see the biggest reward.

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