LOGISTICS
A
s the ecommerce sector continues to expand, the onceoverlooked reverse logistics function has now rightfully taken its place as a critical strategic component for business success.
The management of returns, recycling, repairs and disposal is no longer merely a back-office cost centre – instead, the process is being used to drive profitability, improve consumer loyalty and advance sustainability progress.
A report from Bain highlights the current pressures retailers face:“ The holiday season should be packed with surprises, but not the kind that retailers are facing: excess inventory, rising shipping costs, increasing returns and more.”
You’ ve probably been there yourself; the new workout set under your Christmas tree doesn’ t quite fit, grandma got you yet another pair of slippers, you didn’ t quite make it to your best friend’ s for Thanksgiving, or maybe you panicbought a Kitchen-aid in the January sales. Whatever the reason, we all need to return something from time to time, and rely on robust systems to maintain brand trust. The report reveals US retailers hold US $ 66bn worth of additional inventory, a 21 % increase from prepandemic levels in 2019. This surplus of stock places mounting pressure on margins due to necessary markdowns, storage costs and penalties for cancelled orders.
It highlights the challenge of return costs:“ Processing a return can cost 66 % of the price of the product, putting formidable pressure on already-slim margins.”
154 January 2026