About

Reverse logistics refers to the lifecycle of a product after it gets to the end-user. It usually involves how a customer uses the product and then disposes of it. The biggest concern for companies here is the product return. If you do not have a plan to deal with product returns, you may be out of the game.

Reducing product returns

According to stats, about 20% of e-commerce returns are due to shipping damage. That is a high rate for companies and businesses shipping products to customers. The good thing is that all it takes to address this issue is to change the void-fill or rethink the process of sealing the carton.

Another reason people return products is that they received the wrong item. To solve this problem, companies can manage their packaging lines to make them efficient and accurate.

The final reason for returns is the inability of the product to meet consumers’ requirements. It can be the wrong product size or the product’s inability to meet customer’s expectations. You can counter this issue by ensuring that your website communicates what the product is and what a customer should expect. You will have to see whether there is enough information available on the website before the customer presses the buy button.

It is worth noticing here that about 70% of customers avoid purchasing from a brand that doesn’t allow product returns. If you want to grab your customers’ attention, you have to formulate a robust product return policy.

Addressing the increase in e-commerce

The rate of product returns rises with the rise in e-commerce purchases. According to an estimate, e-commerce returns are three times more likely to be returned than purchases in retail stores. That means you have to be ready to deal with a lot of returns if you are running an e-commerce business. The most common reason for product returns in this regard is that the product wasn’t one the customer was expecting. For instance, your customer may order two different shoes if he or she cannot decide between both of them. He will return the one that doesn’t fit.

Remaining profitable and managing reverse logistics

Implementing equipment for automated box cutting is another way to manage reverse logistics. It will also help you improve throughput, increase safety, and reduce costs. This machine cuts random-sized boxes at pre-programmed widths and heights without affecting the safety of items in the box.

Rearranging your warehouse is yet another viable method to manage product returns. Items returning to the warehouse must be taken out of the box and analyzed for damage. This way, you can decide whether these products should be disposed of or remerchandised for a resell. Designating space and resources to tackle this issue may be the need of the hour if you currently deal with a high return rate.

Another way to manage reverse logistics is to manage your customers. For this purpose, you can track who returns your products and how often they return. This tracking is helpful, especially for businesses selling clothing and jewelry. Unfortunately, many customers use e-commerce purchases as a way to try different products and return them after they are done. By tracking such customers, you can formulate a return policy to manage the issue.