Reverse Logistics
The process of moving returned goods back through the supply chain, including inspection, restocking or disposal.
In practice
It's often more complex and costly per unit than forward shipping, since it involves inspection, a decision on whether to restock, refurbish, liquidate, or dispose of the item, and sometimes a completely different transportation route back to a warehouse.
A returned pair of shoes travels back to a distribution center, gets inspected for damage, and is either restocked as new or routed to a liquidation channel depending on its condition.
Why it matters
It's often more expensive per unit than forward shipping, which is why a high return rate can quietly erode margin even on products that sell well in the first place.
Worth knowing
- Involves inspection, then a decision to restock, refurbish, liquidate, or dispose of the item.
- Return shipping routes often differ from forward shipping, adding complexity to a logistics network.
- A well-designed process can recover meaningful value from returns that would otherwise be a pure loss.
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Let's talk it through
Tell us where things stand with putting reverse logistics into practice and we'll respond with next steps, no forms, no waiting in a queue.
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