Now that half of our clothing purchases are sent back, reverse logistics – or the returns industry – has become big business, with companies finding ways to reduce waste
For those who regret their internet purchases – or those who unwrapped yet another hideous Christmas jumper – the prospect of a trip to the post office to send their returns awaits. Customers complain about the hassle, and many retailers now charge them to do it after some reported the sheer volume of items being returned hadBut now the returns industry – also called reverse logistics – is finally finding ways to reduce waste and even turn a profit.
Reverse logistics are more arduous than shipping goods out. Returns are often sent overseas in shipping containers to storage warehouses. Goods also have to undergo quality control to check they can go back on sale, which is expensive.“There is no such thing as a free return,” said Al Gerrie, CEO of ZigZag Global, which has a returns platform and global carrier network. “The logistical processes involved – inspecting, repackaging and redistributing items – costs retailers a lot.
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