When it comes to mastering reverse logistics, the whole process can be an absolute minefield. As we begin to traverse a new landscape which is being shaped by the rise in eCommerce sales and influencer marketing trends, we’re noticing a dramatic increase in items returned for reasons which are not always to do with the brand itself. With this upward trend proving to be problematic for eCommerce brands, more needs to be done when it comes to turning returns into positive sales opportunities.
As with eCommerce fulfilment, reverse logistics greatly impacts a brand’s reputation. Incorrect navigation of the entirety of the returns process can often result in decreased revenue, product and inventory losses, and cause considerable upset to customers. Ultimately ending with loss of custom and reduced lifetime value (LTV).
That is why mastering the art of reverse logistics is one that we, here at SCEND, don’t take lightly. From the initial inspection to getting those products prepared for resale, we ensure every returned order is given the utmost respect and attention it deserves. If you’re in a position to do so, hiring the experts to take on your reverse logistics takes the stress out of product returns and refunds.
However, that being said we’re not here to just sell you a dream! And so we’re going to let you in on some really exciting insights into the returns industry so you can explore more on how to master your reverse logistics and keep your customers not only on your side but coming back for more.
Why "Reverse Logistics"?
First of all, let’s get into the nitty-gritty of it all. What is reverse logistics, and why are we using that specific terminology? The answer is simple really, by using this terminology, we’re allowing you to think of returns in a completely different way.
Reverse logistics refers to the process of transporting, itemising and re-stocking of a product returned by the customer back to the retailer or manufacturer. This aspect of the supply chain is just as critical as the logistics process we've all come to know, of delivering the product from the retailer to the customer. It demands the same level of precision, care, and attention to detail to ensure a smooth and efficient process.
As we’ve already stated, there are various legitimate reasons for returning items, and without the brick-and-mortar store where you can see, feel, and even try out a product in real life, customers ARE sending products back more and more often. But this ISN’T the end of their journey, or at least it shouldn’t be. Whether the return is due to a damaged product, an incorrect item, or a change in customer preferences, handling reverse logistics effectively is key to maintaining customer satisfaction. A streamlined process not only helps retain customer loyalty but also ensures returned items are assessed, processed, and either restocked or recycled as quickly as possible. In short, reverse logistics is an essential component of the customer experience and overall operational success.
Treating returns with the same care and respect you would a sale can result in that customer feeling looked after and respected. Creating meaningful relationships with those who purchase from your brand allows you to be seen as a customer-centric brand that cares primarily about building relationships, not just selling products. Allowing you to remain competitive in a growing eCommerce landscape.
Should I be placing barriers when it comes to returns?
Since 2022 we have seen online returns increase by over 20%, and with the eCommerce industry growing this number is only set to increase. That being said, many eCommerce businesses are looking at ways in which they can implement barriers which act as a deterrent for multiple online returns. In a bid to reduce their reverse logistics costs, businesses can be seen to be adding a returns charge, deactivating certain accounts with a high percentage of returns and even more subtle barriers such as having no returns portal or slip and instead having to directly call a customer returns line. Though some businesses are seeing these steps as necessary, is placing these types of barriers the best way to go when it comes to returns?
In short – the answer is no. As we’ve already said, reverse logistics is the other side to the same eCommerce fulfilment coin. And when customers order without physically seeing or touching a product they can never be 100% sure on the size, style, material and or quality of your product. Returns within an online business are inevitable and by placing these types of barriers you’re alienating customers who could be likely to purchase from your brand again, therefore reducing customer lifetime value and creating a long list one first-time buyers.
You want to turn your returns process into an asset for your business. Allowing your customers to shop how they choose to shop whilst still providing value and streamlined processes which limit downtime and ultimately increase long-term revenue.
Having a reverse logistics process in place which is customer-centric is the best way to ensure that customers feel safe purchasing from your brand. And even if they’ve had to make a return, they’ll keep coming back for more.
Swift returns and refunds don’t result in revenue loss.
As we’ve already mentioned, getting your reverse logistics process done right can be a massive asset to any eCommerce business. Providing customers with a seamless, swift, and efficient returns experience not only enhances your reputation but also drives higher retention rates, encourages repeat purchases, and ultimately boosts your revenue. With most customers having legitimate reasons for their returns having a swift and efficient process will make all the difference when it comes to your customers. By making their journey as hassle-free as possible, you can increase customer loyalty, generate positive recommendations, and build long-term trust in your brand
With SCEND we work on a quick and accurate reverse logistics model which is tried, tested and perfected over the 10 years we’ve been working in the eCommerce industry. Our tried-and-tested approach ensures that your customers can return items with ease, while we work diligently to get those products back into inventory in record time. This allows you to quickly restock and resell returned goods, maximizing your revenue potential, all while keeping customers satisfied and eager to shop with you again. With SCEND, you can achieve the perfect balance of efficiency and customer satisfaction, setting your business up for sustained success.
What does a streamlined reverse logistics process look like?
Step 1: The customer logs a returns request via your website or returns slip.
The first step in the returns process begins when the customer logs their return request. This typically involves accessing a returns portal, filling out a form, or contacting customer support, depending on the system in place. During this step, the customer provides details about their purchase, such as the order number, product information, and the reason for returning the item.
Step 2: The customer prepares and sends the returned product(s).
The customer will print a return label provided by your system, either through a self-service portal or via an email sent after the return has been initiated. The return label contains all the necessary information, such as the return address and a tracking number, ensuring the parcel can be identified and monitored throughout its journey back to you or your third-party logistics provider.
The customer then carefully repackages the item, ideally using the original packaging when possible, to protect the product during transit.
Step 3: The item is received into the warehouse.
Either you or your 3PL will receive the returned goods. Once the item is received, it will be logged back into the system and then inspected to ensure that it matches the reasons given for return. Faulty items will then be quarantined and disposed of according to your guidelines. Items which are fit for resale will be deep cleaned, re-labelled, packaged and placed back into the warehouse for picking and packing.
Step 4: Get live updates from your chosen 3PL.
During the returns process, your 3PL will keep you informed every step of the way. Through the use of clever technology, your 3PL should provide you with live updates meaning that you can process your clients’ refunds quickly. Getting a client’s refund processed quickly will increase the likelihood of them purchasing from your brand again in the future.
Step 5: Happy satisfied customers, means increased LTV.
Any good 3PL will work alongside you to ensure that your reverse logistics process is as smooth as possible for both you, and your customers. At SCEND we understand all too what providing an excellent fulfilment service can mean for both you and your customers. With a key focus on retention and revenue, a 3PL such as SCEND will provide the best logistics service whether that be connecting your products to your customers initially – or the reverse logistics process.
Want to know more about SCEND’s reverse logistics process? Explore more on our returns management page.
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