Too Many Happy Returns: The struggle to predict reverse logistics

The mind of the shopper

According to the UPS “Pulse of the Online Shopper” study, the integrator’s work in reverse logistics is paying off. Between 2012 and 2016, consumers reported fewer issues paying for return shipping, down from 66 percent to 50 percent over the four-year period. There was a similar response for paying restocking fees and delays in receiving credits or refunds, as retailers streamlined their processes.

While the rates are improving, UPS’ own data suggest that 35 percent of online shoppers are still unhappy with the experience of returning or exchanging a purchase online. UPS also found that 60 percent of online shoppers want free returns, and 44 expect easy-to-print return labels.

“Consumer preferences, enabled by e-commerce, have permanently shifted the supply chain landscape,” Iaria said. “As a result, companies are being forced to invest in a more agile set of distribution centers that seamlessly integrate forward and reverse logistics. This dynamic has buoyed demand for providers of last-mile delivery.”

Companies that integrate transportation squarely into their corporate strategies can best differentiate themselves in the eyes of customers, Iaria continued. “Today, with rapid advancements in every field, including retail and e-commerce, it is practically impossible for any company to develop and sustain best-in world expertise in every facet of operation,” he said. “Companies can gain expert help in areas where they may lack expertise by collaborating with 3PLs.”