The phenomenal growth of e-commerce has sent returns skyrocketing. Traditionally, only about 9% of items are returned, but in the case of online orders, at least 30% are returned to merchants. This increase is putting pressure on the supply chain funnel and calling for smoother reverse logistics processes.
After reaching critical mass, returns can definitely impact your bottom line and brand image if not managed properly. How should companies flip the industry mailing list advantage? By using reverse logistics! Why? Because reverse logistics can improve overall business health in at least four ways: saving money, reducing waste, increasing customer retention and identifying potential for product improvement.
In this article, we'll show you how. 1. Reverse logistics saves money This is a priority that every company can appreciate. Saving money improves the bottom line and increases profits, which is obviously the main reason most companies do business. It may be tempting to mask returns, but they have a real impact on profitability. On average, manufacturing companies spend only 9-15% of their revenue processing returns. Fees can include many things, such as return shipping, receiving and restocking, clearing, and staff time. Here is a scene: