Sale or return is a type of sale that allows a buyer to return the goods if they are unsatisfied. Such a sale is usually prevalent in the book industry, where unsold books can be returned to the publisher.
SOR is generally used in the book industry because it allows sellers to stock multiple titles without guessing whether they will sell. It allows customers to browse a range of books and choose the one they prefer.
Sale or return is meant to provide the buyer with the option of avoiding the risk of the products they buy but cannot sell. Such a sale also induces the consumer to gamble on new and unfamiliar products. Publishers can persuade retailers to put new titles on their shelves by offering sales or returns.
However, the buyers might not feel happy with the sale or return since they have drawbacks:
- The buyer may only return some purchased products because some are lost or destroyed.
- The buyer may not be refunded fully for returned products; the publisher may even deduct a restocking fee.
- The buyer may incur the cost of shipping the products in case of a return.
Sale on return is one of the most essential things a publisher can sell its books to a retailer, allowing the retailer to return unsold books. This system provides publishers with an opportunity to publish new or unknown authors. Also, it will enable retailers to stock many books without worrying about unsold inventory.