January 12, 2023

A Quick-Guide for Reverse Logistics

Reverse logistics has been a part of retail for over 100 years. However, the exponential growth of e-commerce has led to a burst of reverse logistics, that is, shipping goods or items from the consumer back to the seller.

The reverse logistics process is vital to any successful and streamlined supply chain. Clients nowadays expect easy and convenient return policies; that’s why returns on e-commerce orders are three to four times higher than purchases at physical stores, so reverse logistics has become very common for most companies.

What is reverse logistics?

When a customer receives a product, returns or recycling may be required, which is when reverse logistics comes into action.

Reverse logistics starts at the end user, moving backward through the supply chain to the manufacturer or the distributor. Reverse logistics may also include processes where the client takes responsibility for the disposal of the product, such as recycling, refurbishing, or resale.

The goal of reverse logistics is to regain value from the products or dispose of them. Returns are worth almost a trillion dollars a year worldwide and have become more and more common as e-commerce grows. Also, companies are using reverse logistics to build customer loyalty, repeat business, and minimize returns-related losses.

Woman handling a machine in factory

The five R’s of reverse logistics

Along with financial impacts, an adequate returns process will positively affect the customer experience. When businesses interact with customers effectively during the return process, they don’t just drive repeat orders; they also improve customer satisfaction and loyalty. So, it is essential to improve the reverse logistics process in these five key areas:

Reverse logistics benefits infographic

What industries benefit from reverse logistics?

The industries that most benefits from reverse logistics include, but are not limited to:

  • E-commerce

  • Automotive industry

  • Pharmaceutical industry

  • Consumer electronic industry

  • Retail sellers

  • Luxury goods sellers

  • Reusable packaging industry

At Last Mile Logistics, we will be happy to assist you and your business with any transportation needs. Our trusted partners have the experience and knowledge to handle your freight and help you to achieve your organization’s goals.