Reverse Logistics

The rise of e-commerce has driven major shifts in warehouse strategies – one of the most significant being the growth of reverse logistics. According to The National Retail Federation (NRF), more than 15% of all online orders were returned in 2024. To keep up, warehouses have had to adapt, not only to keep their operations running smoothly, but to keep customer satisfaction high.

Reverse logistics, as the name suggests, is the process of goods being returned from the consumers back to a warehouse or distribution center. With returns climbing year over year, warehouses and 3PL providers are investing in systems and workflows built to handle the increasing volume.

Many are turning to Warehouse Management Systems (WMS) to improve visibility and control throughout the returns process. Much like order tracking helps consumers track their deliveries, a robust WMS helps warehouses manage inventory flow during returns in real time.

“By improving visibility and streamlining the returns process, 3PLs can reduce handling times, minimize storage costs, and enhance overall efficiency,” said Mark Harding, Director of Operations, Scarbrough Warehousing.

Self-serve return kiosks are also allowing retailers to meet customers in the middle to facilitate convenient and efficient returns for both parties. By putting these kiosks in grocery stores or shopping centers, companies can save their customers an extra trip to the post office to drop off their returns.

Even if consumers don’t always see it, a warehouse’s performance plays an essential part of customer satisfaction and long-term loyalty. A well-executed reverse logistics strategy can strengthen a brand’s reputation and help turn a potentially frustrating return into a positive touchpoint. From quick and on-time deliveries to stress-free and convenient returns, an effective omnichannel fulfillment strategy isn’t just a backend function – it’s a competitive advantage.