For retailers
Retailers form a crucial link within the deposit system.
Retailers serve as a crucial link between the brand and the consumer within the deposit system. They play a key role in supporting the circular lifecycle of a garment with a deposit. To make the retailer's life as easy as possible, the Circulaid web app helps keep track of which deposit garments are sold and returned.
Within the deposit system, the retailer has two main actions:
Processing deposits on sold and returned garments
Recording the issuance and return of garments
The Circulaid web app is designed to support both actions as efficiently as possible. Ultimately, it’s important that every retailer feels proud and valued as part of Circulaid.
Getting started as a sales and/or return point
When a retailer wants to work with Circulaid, this can happen in two ways:
In collaboration with a fashion brand that wants to introduce a deposit system.
Individually, by registering as a return point.
The most common route is to use Circulaid in collaboration with a fashion brand. This means the retailer can act as both a sales and return point. In this case, the brand will approach the retailer to participate, and the rollout will be coordinated with Candour.Digital, the fashion brand, and the retailer.
In practice, it can also happen that a retailer is not yet selling clothing with a deposit system but still wants to be part of Circulaid. In that case, the retailer can register as an independent return point.
Circulaid for retailers
For retailers who serve as both a sales and return point, the following steps need to be followed:
Preparing a deposit collection in the inventory/cash register system
Selling and accepting returns of garments
Financially reconciling deposits
1. Preparing a deposit collection
When a retailer is preparing to sell a clothing collection with a deposit, it is important that during the check-in of these items in the inventory/cash register system, the corresponding deposit amounts (based on EAN/Barcodes) are also entered.
Currently, Circulaid operates with the following deposit amounts:
€2.50 - EAN: 8720707315727
€5.00 - EAN: 8720707315734
€7.50 - EAN: 8720707315741
€10.00 - EAN: 8720707315758
In the first version of the system, it is not yet possible to attach a deposit amount (at 0% VAT) to an item code. Therefore, retailers are asked to add these as separate items in the inventory system. Since these are deposit amounts, it is important that these four items are entered into the system at 0% VAT.
2. Selling clothing with a deposit
In addition to entering and preparing the inventory/cash register system, employees need support to work with the deposit system easily. Two aspects are important here:
Financially recording collected and refunded deposits
Recording the issuance and return of garments
Financially recording deposits
When a garment with a deposit is sold, the financial administration must take place through the cash register system. In addition to the garment, the deposit barcode (which will be easily displayed via the app) should also be scanned. The consumer then pays at the register, and the collected deposit is recorded in the financial administration under 0% VAT. In essence, this is no different from selling a "fictional" item in the form of a deposit, making it easy to trace in the bookkeeping.
Recording issuance and return of garments
In addition to the financial administration, a garment with a deposit must be officially issued by the retailer. This is important to create transparency in the product’s lifecycle and to trace where and when garments are issued and returned. It is important to note that Circulaid only processes product data, and participation in this system is anonymous for the consumer, as the system does not know who buys and returns the clothing.
When issuing a garment, the QR code in the deposit label should also be scanned along with the barcode. The cashier can do this using the Circulaid web app. By scanning the QR code with the camera of an iPad or iPhone within the web app, the product can be recorded as "issued."
When returning a garment, the same process is repeated, but this time it records the product as "returned."
3. Financial reconciliation of deposits
The financial reconciliation of deposits occurs periodically and takes place between the participating retailer and the Never Ever Waste Foundation. The foundation will request the retailer to report on the collected and refunded deposits once every three months. Based on this report, the deposit amounts are reconciled between the foundation and the retailer.
The report consists of two parts:
A financial overview of the sold and refunded deposits (EANs)
A product overview of the issued and returned products
When the financial overview matches the quantities of issued and returned products and the payment has been made, the deposit has been successfully reconciled.
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