Reverse logistics occurs after the sale. It includes an array of potential activities that recapture value and extend the lifecycle of the item. For example, consumers in many states participate in bottle return of glass soda pop bottles. Returning the bottles nets them a few cents and enables the manufacturer to cut costs by recycling the bottles. That small discount adds up to customer loyalty.
Reverse Logistics in Business
In a business environment, reverse logistics refers to returning a product to the distributor or manufacturer for recycling, refurbishing or servicing. The practice is also referred to as aftermarket logistics, the aftermarket supply chain or retrogistics. The processes belonging to reverse logistics include:
- recycling and waste management,
- returns management,
- warehouse management,
- warranty management.
You can add value to your firm’s returns management and further increase customer loyalty by making the logistics of their returns simpler. You can save money by recycling a used item. You can also recoup some of the money lost by the returned sale from a consumer using grading, product auditing, sorting and recycling on most items. With respect to electronic items, apply data wiping, refurbishment, and repair.
It’s a nice thought that perhaps everyone will keep their purchases but returns happen. About 12 percent of online retail purchases get returned annually, states a 2017 Narvar report. The good news is that those returners represent good customers. Of those who returned an online purchase, 82 percent were repeat shoppers and 95 percent who found the returns process satisfactory said they’d shop again with the retailer.
According to the report, “High-value customers are also the most likely to utilize the returns process.”
Making Returns Easier
Using a reverse logistics service like Captech Logistics or Worldwide Supply can streamline customer’s returns process. These services add tracking and package trace which results in a lower returns management cost.
Providing a quality returns policy indicates trust to potential buyers. E-commerce industry studies show return policies influence a customer’s choice in where to shop online. Making an easy to use e-commerce returns process encourages consumer loyalty.
The sustainability aspect of reverse logistics also helps companies appeal to a wider array of consumers. The activities of recycling and refurbishment show a clear respect for the environment while allowing the firm to cut costs.
Contact us at Starr & Associates to learn more about how to use reverse logistics and the e-commerce returns process to build your brand’s voice and improve your online presence. We’re your resource improving your company in Atlanta, GA and beyond.