{"id":3409,"date":"2022-08-12T07:00:00","date_gmt":"2022-08-12T07:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/reverse-logistics\/"},"modified":"2025-09-23T23:59:17","modified_gmt":"2025-09-23T23:59:17","slug":"reverse-logistics","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/reverse-logistics\/","title":{"rendered":"Reverse Logistics Meaning and Process Explained"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is reverse logistics?<\/a><\/p>\n\n\n\n

How the reverse logistics process works<\/a><\/p>\n\n\n\n

Costs of returns on a business<\/a><\/p>\n\n\n\n

Tips for improving your reverse logistics process<\/a><\/p>\n\n\n\n

Conclusion<\/a><\/p>\n\n\n\n

Reverse logistics FAQs<\/a><\/p>\n<\/div>\n\n\n\n

Your ecommerce business probably spends a lot of time thinking about how to optimise your logistics costs<\/a> and process, but do you give your reverse logistics process the same consideration?<\/p>\n\n\n\n

If not, it could be costing you a lot of repeat business. Companies that provide a great post-purchase experience, including the reverse logistics process, are likely to see repeat business from customers 84%<\/a> of the time. <\/p>\n\n\n\n

In this article, you’ll learn what you should know about reverse logistics, how to improve the process, and why partnering with a 3PL like ShipBob is a common solution for many ecommerce businesses.<\/p>\n\n\n\n

What is reverse logistics?<\/h2>\n\n\n\n

While logistics encompasses everything involved in moving a product from the retailer\u2019s warehouse to the customer\u2019s location, reverse logistics <\/em>refers to the process of moving a product or package back from the customer to the supplier, in the event of a return or exchange.<\/p>\n\n\n\n

Product returns are common in the ecommerce industry, impacting anywhere up to 40%<\/a> of product purchases depending on the category. <\/p>\n\n\n\n

Customers might return an item because it doesn\u2019t fit, doesn\u2019t match the product description, is defective, or any number of other reasons \u2014 many of which won\u2019t stop them from shopping with the retailer again if their expectations are met during the returns process. <\/p>\n\n\n\n

The reverse logistics process covers everything from the initiation of a return to processing the product at the retailer\u2019s warehouse, including packaging, shipping, customer support, inspection, and restocking or disposing of the product through recycling, repurposing, or other means. <\/p>\n\n\n\n

It\u2019s important to build a reverse logistics process that\u2019s efficient, cost-effective, and delivers a great experience, for both the customer and the merchant.<\/p>\n\n\n\n

How the reverse logistics process works<\/h2>\n\n\n\n

In many cases, reverse logistics can be costly and difficult to manage.<\/p>\n\n\n\n

Many logistics partners, like ShipBob, can help your business automate and outsource the returns process with optimised routing to get the products back into your inventory as quickly and cheaply as possible.<\/p>\n\n\n\n

But before you source the right logistics partner, it\u2019s important to understand the steps that go into reverse logistics.<\/p>\n\n\n\n

Customer receives item<\/h3>\n\n\n\n

There\u2019s a lot riding on a successful delivery of a package, and you can minimise reverse logistics activity if you can “wow” the customer at this stage.<\/p>\n\n\n\n

Your delivery should arrive on time and in perfect condition with packaging that protects the item from damage during transit. And of course, it should include the item(s) that the customer actually selected. <\/p>\n\n\n\n

If any of these conditions aren\u2019t met (the box or item is damaged, the item is the wrong size or colour, or the delivery is delayed), your odds of a return go up. That’s why it’s important to focus on creating a fantastic customer experience through the entire delivery process. <\/p>\n\n\n\n

Even so, there are some cases where a customer may still want or need to return an item. What happens then?<\/p>\n\n\n\n

Customer initiates a return<\/h3>\n\n\n\n

Every brand will have their own returns policy. Ideally, it\u2019s easy for customers to understand with a specified return window for all products except final-sale items and other special categories.<\/p>\n\n\n\n

When a customer wishes to return an eligible item, they should have the ability to easily request a refund or exchange through one of your sales channels (website, app, email, etc.), via a support agent or an automated solution. <\/p>\n\n\n\n

Your agent or solution should be able to provide a seamless process for getting the item back to your warehouse, with flexible options based on the customer\u2019s preferences. <\/p>\n\n\n\n

Return label printed<\/h3>\n\n\n\n

Your brand should provide its customers with flexible options for returning an item. <\/p>\n\n\n\n

You might offer them pre-printed return labels<\/a> when they receive their package in case a return is required, or you can provide them with printable return labels when they initiate a return request. <\/p>\n\n\n\n

However, if a customer doesn\u2019t want to repackage an item, or repackaging requires specialized skills or materials, you should also include an option to take the unboxed item to a drop-off location, where it can be packaged safely on their behalf. <\/p>\n\n\n\n

Items are sent back to be returned<\/h3>\n\n\n\n

Next, returned items are sent back to the business.<\/p>\n\n\n\n

If a customer has chosen to self-mail the package, you can route it back to your warehouse or a 3PL’s fulfilment centre location that\u2019s closest to the customer\u2019s address, helping you save time and money on shipping by identifying the most efficient route.<\/p>\n\n\n\n

Or, a return can be routed to a fulfilment centre with low inventory to optimise stock in each location.<\/p>\n\n\n\n

If a customer has selected a drop-off location, you can save on shipping with bulk package pricing by waiting until you\u2019ve accumulated a larger quantity of returns, then shipping returns back in bulk at a discounted shipping rate.<\/p>\n\n\n\n

In either case, if you partner with a 3PL<\/a>, they can help you efficiently and affordably determine where to route your returns, and provide the customer with regular shipping and refund status updates along the way. <\/p>\n\n\n\n

Returned items are received & inspected<\/h3>\n\n\n\n

During the return process, your warehouse staff or 3PL partner will confirm that items are eligible for resale before restocking as available inventory. <\/p>\n\n\n\n

If the item is still in original packaging, you can skip this step, but if the item has been opened, it\u2019s important to check for signs of wear and tear or other flaws to determine whether the item should be returned to inventory. <\/p>\n\n\n\n

Depending on your policy, the customer may not receive their refund until this phase is completed, and you may opt for an alternative solution, like store credit, if the product is not deemed eligible for a return. <\/p>\n\n\n\n

Items are returned to inventory<\/h3>\n\n\n\n

Once items have been inspected, they can be re-shelved and relisted in your inventory if they are resellable. Your team or 3PL provider will restock the items and update SKU<\/a> count using an inventory management software<\/a>.<\/p>\n\n\n\n

Items can also be labelled as \u201copen box\u201d sales or another type of special listing or sale based on the item’s current demand, condition, etc. <\/p>\n\n\n\n

It\u2019s also important to find ways to safely and sustainably dispose of items that cannot be resold. Your brand might work with a recycling plant to recycle your products, or ship gently used products to a donation centre where they can receive a second life. <\/p>\n\n\n\n

Costs of returns on a business<\/h2>\n\n\n\n

The cost of reverse logistics includes many elements, such as:<\/p>\n\n\n\n