Most reverse logistics scenarios relate to the final transaction in this chain, with examples including post-sale refunds or warranty periods. The recall of defective products is also included here, as is the collection of products at the end of their life cycle for recycling or proper disposal.

Beneath an effective reverse logistics transaction is a complicated maze of fulfilment partners and processes, especially if you run an international business. Who pays the return postage to get the product back through the supply chain network, especially from a different country? (Hint: If it’s you, customers will react more favourably as it builds trust, and it will give you an edge over the competition.)

While you need to ensure the process is easy for the consumer, you should also consider your strategy for returned items. If a customer returns a damaged piece of clothing for example, or something in the wrong size, where does it end up? Will it be repaired, destroyed or placed back in your inventory?

The reverse logistics process can run from the end consumer all the way back to the point of origin.

What are the advantages of reverse logistics?

According to a survey of almost 7,688 consumers in the USA, free returns are an important consideration when purchasing online, rating highly with 76% of respondents. Easy returns, too, reduce the barrier to purchase and increase customer retention. They provide an advantage over other online sellers who have a lengthy or difficult returns process.

An easy returns process builds trust, since it shows that the company backs its product, and it provides a positive after-sale experience. Therefore, a well-planned reverse logistics strategy may enhance a company’s reputation, allowing it to differentiate itself from its competitors.

How can I improve my reverse logistics?

Firstly, to improve your reverse logistics, put a strategy in place for returned products. You can calculate whether it’s more cost-effective to dispose of damaged items, return to the supplier or sell as-is at a discount. The cost of returns and the hit to your bottom line should factor into your plan.

Next, create a sorting area and deal with shipments as soon as they arrive back at the warehouse. This will allow you to restock items quickly if you’re placing them back in your inventory, and keep your workspace uncluttered.

Finally, work with a logistics service provider that allows for returns. Sendle, for example, offers a hassle-free process for customers to return goods to the seller, as does DHL. For bonus points, ship your items in packaging that can be reused by the customer, should they want to return their purchases.