How an Optimal Reverse Logistics Process Can Help Manage Increasing Apparel Returns
With the rise of e-commerce in the retail sector, the rate of returns has increased manifold over the past decade. As retailers are now forced to implement customer-friendly returns policies, the high returns handling costs and other challenges of reverse logistics can give retailers a tough time. Reverse logistics often prove to be particularly challenging due to factors including uneven product quality, lack of clarity over disposition options, and erratic inventory management practices. One of the key challenges of reverse logistics here is that it takes almost a dozen steps more to process returns than it does to manage reverse logistics. In this article, experts at Infiniti have curated some key strategies to ensure an optimal reverse logistics process.
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Reverse logistics strategies for retailers
Kiosks for omnichannel returns
The proliferation of omni-channel retail is one of the main reasons why retailers are in the need to enable omni-channel return processes in their business. Top retailers are even going to the extent of opening small kiosks to return goods that have been sold online. The returned products are then sent to a regional processing hub, followed by the retailers fulfillment centers, and finally the goods reach third-party logistics companies or liquidators.
Reverse auctions
This is a reverse logistics technique that is used for the secondary sales of the merchandise that has been returned by a customer. In the case of B2B returns, implementing a private auction space for returns liquidation ensures greater visibility and control over processes. It also helps retailers identify and work on performance improvement gaps.
Do you think investing in reverse logistics could hamper your businesss overall profits? Not if you do it the right way.