Reverse Logistics In Ecommerce – The Last Mile Problem And Its Solutions

Reverse Logistics In Ecommerce| The Last Mile Problem And Its Solutions

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With Ecommerce business, comes the challenge of order returns or reverse logistics. Unless a company’s reverse logistics is set up to handle this efficiently, and with minimal cost, it will quickly become difficult to retain customers and run a profitable outfit.

Today, the eCommerce industry witnesses an average order return rate of about 10–11%. With proper logistics software, this can be managed and handled.

Customers always check order return policy before ordering from any ecommerce website.

An effective way of reducing the cost of last-mile delivery due to order returns is by using reusable packaging and returnable handling units.

Ecommerce business with a strong return order policy will help a great deal in retaining customers and achieving customer satisfaction.

Managers set up their delivery network to guide the order return back to the order-fulfillment center should the customer make a request for an order return.

Managing order returns in the world of online retail is much more complicated as compared to an offline store. There are various solutions go handle an order return.

Adopting automation makes the process of return orders and reverse logistics easier. Perhaps the best example of adopting automation is by implementing dispatch software.

The vast data-crunching ability of dispatch software gives logistics teams deep insight into the key reasons and enables them to make informed decisions of reverse logistics.

3PLs with sound reverse logistics typically store the returned parcels in their 3rd-party warehouses and manage the entire order return-refund-replacement process, including inspection, re-stock, reject, refund, replace (etc.).

A robust reverse logistics operation is critical in managing the inevitable problem of order returns. Therefore, logistics companies would do well to deploy best practices to do so, including

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