Just when you think retailers are losing on the massive number of returned merchandise during the holiday season, one start-up company is making millions out of them.

According to the New York Times, Optoro, a new start-up company that aims to ease the problems of financial and environmental costs of returned items, has found a way to dispose these items in the most profitable way.

Optoro Inc. recently joined the trend of handling returned merchandises and make a profit out of them. Wholesalers, resellers and even liquidators welcome this type of business. The company said that they process about 10 million returned items a year and significantly received more than $80 million in funding from Silicon Valley investors.

 

Returned items are a huge loss on retailers, mainly because these items are not subject to return to their stands. Instead, they land on third-party sellers such as Optoro Inc. Aside from the huge financial loss for every item returned, there is also the threat to the environment for some items that end up on landfills.

Companies such as Optoro Inc. ease this type of problems by collecting and reselling the said items. In a statement given by Tobin Moore, chief executive of Optoro, he said, "The way we consume right now isn't sustainable. We can't keep throwing stuff away. There is a better way."

Optoro has been managing software that is directly connected to their partner retailers. Once they track down a returned item, the software immediately directs it to the right channel of destination. This way, all of these items will be properly disposed whether on resale, donation or for recycling.

Electronic items dominate these returned items and are also one of the easiest ways to resell. Retailers, despite their generous return policies, significantly reduce the length of time that the merchandise can be returned in order to resell it during the holiday season.

Edgar Dworsky of Consumer World said, "Retailers want to cut down the period of time that someone has to return the item, so they can more quickly turn it around and sell it to someone else."

Meanwhile, according to Biz Journals, Optoro Inc. is extending its services in D.C. with a new office space installed. The newly rented space is located at the top floor of the 1001 G building, something that Quadrangle Development Corp. and Oxford properties Group consider a huge triumph.

Optoro Inc. joins another huge logistics company, Genco, in providing services to retailers such as Macy's, GAP and Target.