Back to supplier; know what reverse logistics is in e-commerce and what are the main reasons that incite it
The natural process after purchase is: the product comes out of stock, be transported and reach the consumer's home. See below, what is reverse logistics in e-commerce and understand what the function of this procedure is and its main motivations. The reverse path is not always the last movement of the commodity.
In a direct way, reverse logistics in e-commerce refers to the procedures associated with product returns, repairs, maintenance. It means moving products in reverse along the supply chain, regardless of motivation.
When we think about the logistics of e-commerce, we think about the movement of motivation of the purchase until the arrival of the product in the hands of the customer. The more common internet sales became, a new logistical challenge arose, the reverse movement for defects or customer dissatisfaction to the seller, or supplier.
Just as is common in physical sales, when presenting problems or the fact that the withdrawal period is guaranteed by law, the reverse interactions in the sales chain have reached e-commerce.
Main reasons for reverse logistics
In physical stores, it can make it clear that a certain sale does not accept returns, because it is stock tip, has small defects, but in e-commerce this is not possible, because the customer did not see the product "in fact".
There are a number of reasons that make reverse logistics inevitable, including incorrect product delivery, customer withdrawal, damaged product, delay in order fulfillment etc.:
* Customer motivations
* Incorrect product or wrong size;
* Withdrawal for not meeting the needs;
* The product was damaged on arrival;
* Product with functional defect.
* Motivations through the carrier
* The customer gave the wrong or incomplete address;
* The customer was not available to receive the order;
* Product repairs or replacement.
Who pays for reverse logistics?
The cost of reverse flow is usually high, especially when the value of returned goods is lower. The stock consumes the already tight profit margin when looking for competitiveness. According to iThink Logistics, "returns increase by about 8 to 10% of the cost price of the product."
All right, but whose pocket does that come out of?
Usually, the cost is borne by the seller. One of the main arguments that underpin this position is: the customer does not see or touch the products before purchase. Often descriptions can mislead the consumer.
From the sellers' point of view, each time the customer returns the product, the greater the chances of not buying in the same place. Customer acquisition value and long-term loyalty value are important to the market. Other than that, when delivering an inferior product, competition is strengthened. In order to avoid an even bigger problem, sellers often absorb the cost.