All ecommerce must deal with the elimination of unnecessary costs related to the supply process. And one of the aspects to be monitored is reverse logistics.
If not properly controlled, reverse logistics can interrupt the entire workflow, reduce profits and leave retailers with inventories that cannot be sold.
But when optimized well, it can present an opportunity for sales to be maximized and costs reduced.
WHAT IS REVERSE LOGISTICS?
At the most basic level, reverse logistics refers to all operations related to product and material returns.
And, unfortunately for sellers, this happens all the time.
Customers return their purchases; stores return surplus inventory to warehouses and non-current products are removed from the shelves.
All these products still cost money, so reverse logistics should provide retailers with a means to recover some of that value.
In addition, return management is very important for ecommerce since using the right tools can provide them with the data and information, they need to improve other branches of their operations.
THE BENEFITS OF AN OPTIMIZED INVESTING LOGISTICS
In general, the greatest benefits of good reverse logistics are:
- Increase the use of assets.
- Create happier and loyal customers.
- Generate a better ROI.
- Reduce losses and unplanned revenues.
- Improve the sustainability of the environment.
- Promote a culture of leadership in the industry.
The expectations of current customers require ecommerce to provide painless return processes, a trend largely driven by e-commerce giants like Amazon.
Making the return process simple has made returns more common. Some industry statistics estimate that return rates are between 30% and 40% according to Forbes.
However, this is not all bad. Online stores now offer flexible return policies to customers, earning their trust, and trying to optimize reverse logistics.
Companies can also benefit from all these returns.
The value of the returned merchandise can be seen in the data and helps to make future decisions about the levels of inventory and the necessary labour.
More efficient return management can also mean greater cash flow from reused returns and higher levels of customer satisfaction.
Finally, the need to find useful and efficient ways to recycle or properly dispose of unused products is also an advantage of optimized reverse logistics.
What was once thought to be a waste, now has an important market for recycled and reused products, with the consequent environmental benefits that this entails.
To optimize a reverse logistics plan, ecommerce must collect and analyse numerous data. Good ideas about each step of the reverse supply chain are the key to unlocking maximum efficiencies and a greater profit margin.
At Full Safe Logistics, we help online merchants every day to obtain valuable information about their operations, so that they can make decisions based on reliable data.
Contact us for more information on how we can help you with your reverse logistics strategy.