The increase in demand in e-commerce is a reality, especially in recent months, in which online sales has been the only window that has allowed companies and buyers to connect in sectors such as fashion. A growth that requires an evolution in logistics structures and presents several challenges for the supply chain, including that of reverse logistics, which directly influences the consumer experience, a key factor in the strategy of any company.
As a result, it is very important to have a clear return policy and to make it easier for end users to return the package they want to return, which is essential in order to maintain the trust of e-commerce users, but that entails certain costs for companies, which have to manage transport, the classification of the goods received by references and depending on their status, the refurbishment or withdrawal of the product, for recovery into the sales cycle, etc. Actions that have an impact on the income statement which should be minimised.
In Spain, in the case of sectors such as online fashion, the consumer is getting used to “bringing the fitting room home”, that is to say, buying several products, trying them on in their home and returning those that they do not want to keep, which presents a real challenge for e-commerce and shows the importance of reverse logistics to achieve a good consumer experience. In Latin America, fashion e-commerce is still in the early stages, but it is a growing trend, so professionalising reverse logistics management is becoming increasingly important.
According to data from the CBRE’s “Reverse Logistics” survey, 35%
of internet users have returned a product purchased through an online channel, especially items related to fashion, accessories and technology, which are the most returned. In fact, an Idealo study indicates that fashion items and accessories are among the second most returned (at 23%), even though their demand stands at just over 11%. In addition, according to Metpack data, 41% of Spanish consumers thoroughly check the return policy of an e-commerce site before deciding whether to make a purchase or not; and Research Now suggests that 51% leave the purchasing process in the event that they are not convinced by the returns policy of the website where they are buying. These figures are not negligible and companies should take them into account when gaining their customers’ loyalty and developing a cost-balanced return system.
Outsourcing reverse logistics: the key to ensuring consumer confidence and reducing costs
The management of e-commerce returns can become a problem if it is not professionally managed, there is no clear policy or we do not have a specialised partner for it. In fact, many brands know that it can trigger costs if reverse logistics management is not correct, so outsourcing this process can help them to vary and optimise costs, as it makes it possible to group returns to optimise transport costs, speed up the deadlines to recover the product, refurbish those that do not arrive in good condition and return them to the sales cycle as quickly as possible, as well as making it easier for the end user to return purchased items in a simple and hassle-free manner.
Therefore, companies in the fashion and lifestyle industry must have a logistics operator who is prepared to take on this challenge, which in the case of international sales can become a complex and costly process. Therefore, Logisfashion is committed to offering a complete service for fashion brands, which encompasses stock management, order preparation, the recovery of items, ironing, reverse logistics or effective solutions for reverse logistics that fit the new standards of consumer demand, which demand greater flexibility and coordination in the return policy for products purchased online from the different channels (their own stores, marketplaces, etc.).
Logisfashion continuously invests in operational solutions, upgrades and improvements of its systems (WMS, customer portal) and new tools to give a fast and flexible response to the many growing needs of its customers, thus improving its processes in the management of returns, as well as the other stages of the supply chain.
In this way, it responds to the main challenges of reverse logistics, such as costs (which approximately represent each year a 4.4% reduction in the annual revenue of online companies for returns that cannot be resold or discarded), the time in which the staff handles and reclassifies the product, the extra cost in extra space needed to handle and store the goods, the environmental impact of transporting the goods back to the warehouse and the actual monitoring of the products.
