For us as customers it is usually quite easy to return products that we do not like or that are not suitable for use. However, for the seller and the freight companies that handle this process from start to finish, these transactions are It’s like a nightmare.

How exactly does the freight return process work? What happens to the product that the seller takes back from us?

The return on online purchases is estimated at around 20%, although this varies per sector. In clothing this percentage can even be as high as 40%.

At this point, in 2022, the US will have a total It returned products worth $817 billion. In fact, this figure is so high that it is almost twice Malaysia’s gross domestic product. On the other hand, although reverse logistics seems quite simple to us, it is quite complicated for sellers.

For example, if you return something heavy, the seller will return it and then resell it. costs to return it to the place where it is regenerated or burned as fuel It’s significant.

Furthermore, in the bedding industry, where no product can be resold, 10% of customers They still do their utmost to return the purchased items. In this case, the seller, wanting to maintain customer satisfaction at the highest level, cannot resell that mattress and, so to speak, what happens to the seller.

In other words, when it comes to reverse logistics, sellers have to pay high prices.

Looking at the complex journey of reverse logistics, sellers must first ensure that the product is received from the customer whether it retains its functionality or not and pay attention to whether the product has been opened or not. If the product meets these standards, it is ready to be resold to someone else.

Another way that sellers prefer is to eliminate that product.

When it comes to destroying the product, that’s really just the point It’s not about sending it to the trash. These products can also be recycled, burned as fuel or donated.

Another option is liquidation.

Liquidation is a kind of seller, It is a system that only earns 5% of the product’s retail price. The product you return is packaged with the invoice and then sold to the liquidator, who is responsible for figuring out how to make money from it.

Some of these officials are responsible for the products repairs broken parts or removes stains. It then distributes these repaired products to secondary sellers, such as outlet stores or flea markets. In some cases, if the repair required is too complicated for the trustee, that product is sold at lower prices in such places.

In short, the returns sector employs many people and prevents things from being wasted. But to stop buying products we don’t need, It avoids all these tiring processes and makes the work of the sellers easier.

Our other content that may interest you: