E-commerce boosted Reverse Logistics’s growth


In the last 12 months, E-commerce industry recorded steep growth in the last 12 months which remarkably impacted on consumer’s behaviors on every purchasing, following up by increasing return rate and reverse logistics. 

In conventional knowledge, logistics contains activities that bring goods to consumers, but with reverse logistics, goods are brought back from consumers to manufacturers or distributors, company’s resources also needs to be reversed back a step in supply chain’s processes. 

Reverse logistics has always been recognized as an industry with great potential to keep the relationship between sellers and consumers. This is also a useful way for manufacturers and distributors to improve the quality of customer service and expand brand awareness. 

However, reverse logistics also face more challenges, especially in the context of the epidemic when goods can be easily infected with diseases after distributed. 

According to Mr. Steve Banker Vice President of Supply Chain Services at ARC Advisory Group: Reverse logistics has brought large profits in the past 12 months for businesses due to the fast-growing of e-commerce., doubled compared to traditional purchasing behavior. In addition, research from Mr. Banker also shows that sellers have begun to realize the important of cost-free returning. 

Some of the other challenges that logistics also face including the high volume and large cost when handling returned merchandise in e-commerce transformation operations. If reverse logistics activities go into the optimal phase and aim for efficiency, it will bring direct benefits to businesses in terms of customer satisfaction, saving investment costs for resources, warehousing costs and distribution. 

Traditional buying behavior has a return cost 3 to 4 times higher than sending products to customers, especially in the publishing industry and greeting cards that accounted for up to 20% of products returned. Currently, reverse logistics is opening up more directions for sellers when it comes to building trust and connection with customers.

Both traditional and reverse logistics are important parts of modern supply chain management, which also creates pressure on building better services, customer experience on more increasingly popular returning order. 

Therefore, in the short distance, sellers will focus on using logistics services from 3rd parties to manage logistics activities with less stress, complexity and cost savings.

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