To be able to successfully manage the return flow of a product is essential. This activity also about some crucial decision-making and practices internal and external to the firm. Enterprise’s today focus especially on the reverse logistics keeping in mind a “marketing-operations” perspective.

1. Importance of Reverse Logistics Practices for Online Retailers
To be able to successfully manage the return flow of a product is essential. This activity also about some
crucial decision-making and practices internal and external to the firm. Enterprise’s today focus especially on
the reverse logistics keeping in mind a “marketing-operations” perspective. For this, they make use of
conceptualization of consumer value and other related key drivers.
To understand the various facets of reverse logistics practices over a multi-disciplinary managerial overview,
it is essential to have a qualitative research methodology at place. Over the past few years, it has been
observed that an operational integration at the marketing-operational perspective can lead to effective
alignment of corporate resources resulting in higher consumer value.
In the recent time, reverse logistic solutions are gradually becoming one of the most crucial aspects that
online retailers must focus on to minimize the costs and improve customer relationships. Organizations today
often think about the effectiveness about reverse logistics practices to accomplish the above-mentioned
targets.
Reverse logistics has numerous costs, both direct and indirect for both the retailer and the
manufacturer. From a retailer’s point of view, the online returns reduce the net revenues, simultaneously
making the retailer burdened with the initial cost associated with the product packaging, inventory and
shipment from the manufacturer and end fulfillment to the customer. In addition, the retailer also
experiences consumer service and processing costs for the returned goods itself. In order to dispose all the
returned products by reselling or using other means, the retailers might just end paying for new packaging
along with moving the products to its final disposition point.
Today service providers specializing in supply chain solutions have come up with reverse logistics solutions
that provide the following services:
· Detrash and destruction of returned materials
· Date code based warranty assessment
· Test diagnostics and repair
· Software and/or firmware upgrades
· Refurbishment
· Repackaging
· Warehousing and Distribution
· Legally compliant disposal
· Web-based inquiry and reporting
· Advanced web-based management with 24/7 web visibility and reporting
It is a trend that online traders often overlook the reverse logistics processes. This is because they tend to
focus on the main logistic issues for instance retail fulfillment. However, the scope for benefits for the
retailers can be attained through improved returns management, both as cost savings and customer
satisfaction are plausible. From the customer association point of view, reverse logistics or returns
management can improve the customer experience and enhance the customer loyalty, which in turn leads to
increased sales. Furthermore, an organized and systematic returns management approach also helps to bring
down lost revenues, processing costs and maximizes value recovery for the returned products.