Using Reverse Shipping Logistics

What is Reverse Shipping Logistics?

We’ve answered the question “What is reverse logistics?” before, but here’s a refresher.
Reverse logistics (or returns logistics) is the process of products and raw materials going from the end consumer back to the initial shipper. Reverse logistics often come take the form of returns, repairs, or disposals. Some examples of reverse logistics protocols include:

• Redirecting cargo back to the manufacturer or separate facility rather than the selling business.
• Providing shipping labels or arranging the pickup of returning cargo.
• Having the capacity to repair and resell damaged products

These types of things are common in the retail and eCommerce world. UPS and Amazon are well-known for their reverse logistics, but many famous retailers also have extensive reverse shipping policies in place. You’ve probably even been a part of a reverse shipping process yourself!

For example, a customer ordered clothes from an online clothing retailer. When the clothes arrived, however, the customer realized they had ordered the wrong size. Proper return policies should give customers a way to return the clothes to the retailer without complications while also refunding the customers directly or through coupons or store credit.

The Goal of Reverse Shipping Logistics

It’s easy to get cynical about reverse shipping logistics. After all, the customer is showing some form of dissatisfaction over the product they purchased from you. However, there are several reasons why reverse shipping logistics matters:

• Small business owners can salvage value from returned products by reselling them at discounted prices.
• Business owners can rectify any mistakes or errors on their part, such as defective products.
• Customers may purchase from the business again after a successful return, earning their loyalty to your brand.
• Customers will be happy if they can return or exchange products.

Increasing customer satisfaction is the main goal of a smart reverse logistics strategy. Giving customers the proper channels for when their product or shipment goes wrong to remedy a bad experience quickly helps you salvage the value of a lost product and customer.

Reverse Logistics Best Practices

Considering your return policies and reverse logistics strategies early is more important than ever, thanks to the emergence of eCommerce shopping. These strategies are also essential for busy shipping periods of the year, including the holiday season. Here are some reverse logistics best practices to consider:

• Be very clear. Clear and transparent returns policies, repair processes, and recycling processes all play a role in an effective reverse logistics strategy and help you gain customer loyalty amid a bad experience.
• Think about being flexible. Flexibility in the returns experience goes a long way with customers. Look for ways to make sending items back easier or offer in-store drop-offs for locals. Since most consumers wait to return items for weeks, consider extending your return policy timeframe.
• Consider printing or emailing shipping labels. While many consumers prefer to return items in stores, 13% of consumers surveyed stated they prefer returning items through shipping. To help make it easier for customers to return items who can’t bring them to the store, consider offering printing or emailing a return shipping label.
• Check the returned item thoroughly. You might be able to repair or salvage certain items, which can help reduce your costs. Any items that can be repaired can be resold in the future. Keep in mind that certain items might not be repairable. In that case, see what you can recycle.
• Be accurate and quick. While customers might take their time deciding to return a product, they expect an accurate and fast turnaround in the returns process. Look at your current returns policies and data from previous years to see where you can streamline the process.