What is reverse logistics and how does it work in the world of online sales?

Traditional returns have always been a part of retail, especially if the item was not sold in the store. For example, large retailers, such as chain clothing stores, often return unsold goods to the warehouse or redistribute them through discount networks. This helps control excess and minimize losses.

However, with the increase in online sales and changes in consumer habits, product returns have become even more common. The pandemic has intensified this trend, as online shopping has become more convenient and safer for many people. Today, ordering clothes, electronics, or other goods online is a common practice. But alongside the growth in online sales, the number of returns has also increased. For example, in the USA, during peak periods of the year, about 10% of online purchases are returned to sellers.

A buyer who is dissatisfied with their purchase has the right to return the product. In regular retail, he simply returns the item to the store. But in online stores, everything is a bit more complicated. The return process requires the customer to send the item back to the seller via mail or courier service, which creates additional costs for both the buyer and the company.

The costs of returns include not only the transportation of the product but also its inspection, sorting, repackaging, and restocking in the warehouse. In some cases, companies decide to simply refund the customer without requiring the return of the item if its value is low. For example, if they are inexpensive accessories or household items. This helps maintain customer loyalty, which can lead to repeat purchases in the future.
But such a decision does not always come from the marketplace. In most cases, the seller listing their products on the platform is responsible for returns and associated costs. If the customer returns the product, then the seller.

takes on all expenses, including logistics. This is standard practice for most major internet platforms operating on a partnership model.

Such changes indicate that reverse logistics require more attention and resources than standard delivery processes. It is more complex, more expensive, and involves more stages, which is particularly relevant in the context of the growth of e-commerce.