Reverse logistics in eCommerce: key challenges and innovative solutions for cost reduction and sustainability

The reverse logistics in eCommerce is a critical part of the purchasing process, but also one of the most complex to manage. Returning an order involves much more than just a simple shipment: returns mobilise resources, affect business margins and have a direct environmental impact. main challenges of reverse logisticsThe report also shows how industry leaders are responding and what technological innovations are transforming the process.

Main challenges of reverse logistics in eCommerce

High operational cost

Reverse logistics is inherently more expensive than direct logistics. According to the Reverse Logistics AssociationOn average, it costs between 20% and 65% of the original product price to process a return. This is due to non-optimised routes, multiple handling, manual processes and the need for product inspection and reconditioning.

These high costs have a direct impact on brands' margins, forcing them to look for more efficient solutions.

Impact on customer experience

A complex or unclear return process can lead to frustration and loss of trust. In fact, a study of Narvar reveals that 95% of shoppers would buy from an online shop again if their return experience was positive. This makes reverse logistics a key enabler for the customer loyalty.

When the process requires printing labels, repackaging products or moving long distances, friction increases and the possibility of repurchase is reduced.

Management of returned stock

Returns are not only a logistical cost, but also a cost of inventory management. Every day that a returned product takes to be returned to stock is a lost sale. In addition, many returned products cannot be re-sold, generating economic and sustainability losses.

Sustainability and environment

Traditional reverse logistics generates a significant environmental impactThe carbon footprint of the products they buy: excess packaging, double transport and non-recyclable waste. As consumers increasingly value responsible practices, brands face pressure to reduce their carbon footprint also in returns.

How are industry leaders responding?

In the face of these challenges, market leaders are rethinking reverse logistics as a comprehensive strategynot just as an unavoidable cost.

Radical simplification of the process

Brands such as Amazon are opting for returns without label or packagingThis model reduces steps for the user and minimises operational errors. This model reduces steps for the user and minimises operational errors.

According to News WorkAmazon has started applying restrictions on free returns and labelling products as "non-returnable" to reduce abuse and costs.

More streamlined return policies

Amazon's change points to a global trend: controlling the volume of returns without sacrificing the customer experience. By limiting free returns on certain products, it aims to reduce costs and the carbon footprintpromoting more conscious purchasing decisions.

Complete digitisation of reverse logistics

Leaders are investing in digital platforms that facilitate the return to the customer, while they integrate real-time traceability and predictive modelling. These solutions improve operational efficiency and enable better resource planning.

Preventive approach to reduce returns

Many brands are focusing on reducing returns before they occur, through improvements in the product sheetsWe offer a wide range of products, high quality photos, size guides and augmented reality technologies. Prevention is part of smart reverse logistics.

Technological innovations that transform reverse logistics

Recent innovations include the product label-free + package-free returnswhich simplifies the process and reduces the environmental impact. At CeleritasWe are implementing it throughout our network of collection points.

What does the package free model entail?

• The consumer does not need outer packaging or printed labels.
• The consumer deposits directly into a Celeritas Point showing the barcode you have received from the website where you purchased the item or from Celeritas.
• From that moment on, the return has full traceability and tracking for both the website and the consumer.

This model, pioneering in its approach, represents an evolution towards an smarter and more sustainable reverse logistics which reduces friction, errors and waste.

Advantages of the package free model

• Better user experiencesimpler, no label, no external packaging.
• Fewer errorshuman errors in the shop or transport are minimised.
• More sustainableWaste reduction and unnecessary transport.
• Lower costs: higher reliability, shorter lead times and greater efficiency.

For more information on how we implement this system, please see our Celeritas returns service.

Sustainability as a differential value in eCommerce

Sustainability is already a decisive purchasing factor: according to Soziable54% of consumers would be willing to pay more for sustainable products. This reflects how integrating responsible practices into reverse logistics not only improves reputation, but can translate into sales and loyalty.

A sustainable reverse logistics reinforces the brand image and contributes to the retention of environmentally conscious customers.

In addition, brands that responsibly manage their returns are aligned with increasingly stringent environmental regulations and the expectations of an informed consumer.

To learn more about how reverse logistics impacts the sustainability and profitability of your business, please visit the importance of reverse logistics.

Conclusion: Optimising returns, a strategic necessity

Managing returns well is no longer a luxury: it is a operational, commercial and environmental need. In a market where consumers are demanding simple and sustainable processes, brands that are committed to innovations in reverse logistics -such as the package free model- are able to improve their margins, strengthen their reputation and build customer loyalty.

Reverse logistics is undoubtedly an opportunity to transforming challenges into competitive advantages and move towards a more profitable and sustainable eCommerce model.

At Celeritas we help transform this operational challenge into a lever for profitability and reputation.