Increase Sales With An Efficient Reverse Logistics Process

What is reverse logistics?

In order fulfillment, the term “logistics” refers to the process of coordinating and moving products or merchandise from a point of origin (typically a manufacturer, retailer, or supplier) to a final destination (typically the customer). However, for various reasons the final destination isn’t always final, and the consumer will decide to return what they ordered. Therefore, the term “reverse logistics” refers to the process of moving products or merchandise from their typical final destination back to the point of origin.

Why is reverse logistics necessary?

The mindset of today’s shoppers is very different than in previous decades. In the days when people only shopped in brick-and-mortar stores, they would give more consideration to a product before purchasing, because returning wasn’t always easy. It required keeping the receipt in a safe place, and then making a separate trip back to the store and waiting in line before they could successfully return the product and get their money back.

Even today, only 8.89% of products purchased at brick-and-mortar stores get returned, compared with up to 30% of all products ordered online. This is largely due to the fact that consumers cannot see, touch, or try on an online product before buying it. This, mixed with the ease of putting something right back in the box and shipping it back, have made returns a regular part of doing business that ecommerce retailers must deal with.

Order fulfillment-related errors also lead to many returns. About 20% of returns happen because a damaged product was received, and 23% of returns happen after a wrong item is received.

What is reverse logistics?

Why outsource reverse logistics?

Why outsource reverse logistics?

With 92% of consumers saying that they are willing to buy something again if the return process is easy, it is crucial for retailers to have a streamlined, seamless reverse logistics system in place.

The various phases of a successful reverse logistics process can include the following:

  • Communicating with, and providing an excellent level of customer service with the consumer who has initiated the return.
  • The physical shipping, receiving, and processing of the returned product.
  • Examining the returned product to determine whether it is damaged, or if it could be resold.
  • Determining what to do with the product. Not every product that gets returned needs to be (or should be) thrown away and considered a loss. Many can be repaired, restocked, recycled, or disassembled and sold for parts.

Your Brand, Our Passion!

The process of fulfilling orders and subsequently managing returns on up to 30% of these transactions requires a lot of a retailer’s time, money, and resources. By outsourcing to a 3PL and reverse logistics leader like ShipWizard, you can rest assured that you have a team of experienced experts managing your orders and returns.

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