Scale
16-20% of retail sales are returned
Returns are a massive logistics challenge, especially for e-commerce brands with higher return rates.
Freight Glossary
Reverse Logistics
Reverse logistics is the movement of goods from the customer or end point back through the supply chain for return, repair, recycling, or disposal. It includes product returns, warranty exchanges, recalled goods, packaging take-back, and end-of-life disposal. Reverse logistics is operationally more complex than forward logistics because return volumes are unpredictable, items arrive in varying condition, and each return may require different handling.
Why it matters
Returns account for 16 to 20 percent of all retail sales in the US, and that percentage is higher for e-commerce. The cost of processing a return, including transportation, inspection, restocking, and write-offs, can eat 20 to 65 percent of the original item value. Efficient reverse logistics reduces these costs and recovers more value from returned goods. For retailers and brands, how you handle returns also directly affects customer loyalty and repeat purchase behavior.
When to use it
Build a reverse logistics strategy when your return volume exceeds 5 percent of sales or when return handling costs are materially impacting margin. This includes setting up return shipping labels, consolidation points for returned goods, inspection and grading processes, and disposition rules for each product condition. For freight-sized returns like furniture, appliances, or palletized goods, you need a carrier network that can handle irregular pickup locations and conditions.
How Warp thinks about it
Warp supports reverse logistics through its delivery network by handling return pickups from stores, homes, and jobsites using the same cargo van and box truck fleet that makes forward deliveries. Because Warp drivers are already in the area making deliveries, return pickups can be co-routed on the same trip, reducing the cost of reverse moves. Shippers manage return shipments through the same Warp dashboard with full tracking and proof of pickup.
Reverse Logistics
Moving goods backward through the supply chain is harder and more expensive than moving them forward.
Cost
20-65% of item value
Processing a return through transport, inspection, and restocking can consume a significant portion of the original sale value.
Warp approach
Co-route returns with deliveries
Using the same fleet for forward and reverse moves reduces the incremental cost of return pickups.