Reverse Logistics:
A strategic lever for
business performance

Introduction

Reverse logistics has become an essential pillar in the strategy of French companies. This global market, valued at 768.59 billion dollars in 2023, is experiencing sustained growth, with a projection of 1,166.81 billion dollars by 2032, an average annual rate of 4.8% (Fortune Business Insights). In France, the dynamic is particularly strong, driven by the rise of e-commerce, which has tripled the volume of returns in less than ten years (Fevad, Bilan e-commerce 2023).

This growth brings with it major challenges: how can millions of returns be processed efficiently without increasing costs? How can these reverse flows be transformed into economic and environmental opportunities? Reverse logistics is no longer just an operational issue; it is becoming a strategic lever for improving customer satisfaction, optimising the supply chain and meeting the regulatory requirements of the circular economy.

Beyond simply managing returns, reverse logistics is part of a global approach to transforming the value chain. It involves integrating new digital tools, adopting sustainable practices and working with specialist partners. Companies that succeed in mastering these reverse flows enjoy a sustainable competitive advantage, capable of generating savings of up to 30% on operating costs, while strengthening their brand image and social responsibility.

In this article, we offer a detailed analysis of the challenges, benefits and solutions associated with reverse logistics, based on verifiable data, concrete examples from the French market and practical recommendations for a successful transformation.

Customer value for e-commerce

The return customer experience: leveraging loyalty

The rapid development of e-commerce has profoundly transformed consumer expectations, particularly when it comes to product returns. In France, almost 20% of items purchased online are returned, although this varies widely depending on the product universe and the returns policy.

The highest rates are found in the clothing sector, at between 19% and 30%, and even higher for certain product categories. This trend is forcing companies to rethink their returns management, which is now essential to delivering a smooth, reassuring customer experience.

Consumers want a simple, fast and transparent returns process. According to OpinionWay research, 62% of French people say that a positive returns experience influences their decision to buy again (OpinionWay for Generix Group, 2022). Conversely, poor returns management can lead to a loss of trust and a negative impact on loyalty.

To meet these expectations, companies are investing massively in the digitalisation of returns: dedicated customer portals, automated sorting, rapid diagnostics and centralised organisation of logistics flows. These measures not only help to reduce the time taken for refunds, often criticised by consumers, but also improve the overall performance of the process.

Returns management can be a thorn in the side of e-tailers when it is not properly managed, generating a large number of incoming calls from dissatisfied customers and negative opinions on social networks. Returns management can also become a real asset, a major factor in building customer loyalty, when it perfectly meets the expectations of the customer, who will then see his confidence in the brand strengthened for future purchases.

Retailers like Zalando have even gone much further in using the returns service as a differentiation criterion by proposing an offer that allows customers to try out products at home and only pay once they’ve tried them!

What do customers expect from returns management?

Fast repayments.
Ease of organising the return and multiple return options (return by carrier, return to shop, choice of a nearby relay, etc.).
Free of charge. On this point, everything depends on the brand’s commercial policy, its product type and its positioning. However, offering a free returns channel (e.g. in-store returns) or at a reduced price is always appreciated by customers, who will then be more inclined to place another order the next time they visit the website.

Back in shop: generating traffic on the sales floor

Allowing customers to return their online purchases directly in shop is a solution favoured by over 70% of consumers in omnichannel commerce. This facility eliminates the need for packaging and shipping, and often offers an immediate refund or exchange, boosting customer satisfaction and loyalty.

For the company, this method reduces logistics costs, which are in the region of €10 (for standard, non-bulky products). It also encourages in-store traffic, generating opportunities for additional sales.

However, this solution has its limitations. Managing returns requires rigorous organisation, and some chains stress the complexity involved in training staff and setting up dedicated areas. What’s more, some products, particularly bulky or fragile items, are difficult to return in-store. Finally, with almost 40% of returns linked to size or fit problems, in-store returns are particularly well suited to the textile and footwear sector.

To sum up, e-commerce returns to shops significantly improve the customer experience and optimise logistics, but require careful coordination between channels and good operational preparation.

The challenge of processing returns quickly: maximising margins

Rapid processing of returns means that products can be put back in stock before they run out or lose their value (allowing them to be put back on sale during the height of the season and before the sales periods).

Some e-tailers even consider returns to be their warehouse’s number 1 supplier, particularly when returns rates are close to 20%. With this in mind, they pay the same attention to handling this flow as they would to respecting the delivery dates of their most important suppliers.

According to a number of industry studies, the introduction of digital portals, logistics automation and real-time traceability tools can significantly reduce the time it takes to get returns back on sale.

This speed is essential to maximise the value recovered, limit losses and meet the expectations of customers who want smooth management of their returns and fast refunds.

Automation technologies and collaborative platforms play a key role in this optimisation.

Reducing supply chain costs

Reverse logistics offers many ways of optimising the supply chain and generating substantial savings. It transforms return flows into opportunities for continuous improvement, at both operational and strategic levels.

According to DHL, returns cost companies 66% of the initial price of the product. Under these conditions, returns can quickly impact their results.

Transport

Managing returns has a major impact on transport costs, which often account for a significant proportion of total logistics expenditure. By centralising returns in specialised regional platforms, companies can pool flows and optimise routes. This pooling reduces the number of kilometres travelled empty, which lowers both costs and the carbon footprint. Several recent studies, notably by ADEME and players in the social economy, show that pooling logistics flows can reduce transport and processing costs by between 15% and 35%, depending on the scenarios and sectors studied (Ademe). These gains are accompanied by a significant reduction in the carbon footprint associated with logistics. Some French companies, such as Decathlon, have developed networks of collection points to facilitate the return of products and limit unnecessary journeys.

Reduce operational logistics costs

Historically, sorting, quality control and repackaging operations have been costly and time-consuming. Automating these processes, using robotised sorting systems and artificial intelligence, can reduce labour costs by up to 20%. These technologies also speed up the processing of returns, limiting processing times and the risk of errors, and reducing the need to store returned products.

By centralising operations in dedicated hubs, companies can benefit from economies of scale and plan their resources more effectively.

Centralising returns also makes it possible to optimise logistics costs and gain better control over reverse flows, thanks in particular to pooled expertise and technical resources. By optimising these processes, companies can limit financial losses while boosting customer satisfaction.

Zalando, the European online fashion giant, is facing return rates of up to 50% in certain segments. To turn this challenge into an opportunity, the company has invested in automated sorting centres to optimise operational productivity and direct products to the most appropriate storage centre.

Une zone de nettoyage et de réparation a même été mise en place pour maximiser la revente des produits qui ne peuvent être remis en stock tels quels (Zalando).

Traceability

Traceability makes it easier to detect anomalies (transport or other), control the customer promise and plan operations. It helps to optimise the distribution of products between resale, repackaging or recycling. It also contributes significantly to limiting returns fraud by better targeting sensitive contexts.

Retailers who invest in traceability are seeing a significant reduction in losses and an improvement in service quality.

Specialised solutions such as Reversys provide complete traceability of flows and tools connected to carrier information systems, optimising the management and tracking of returns throughout the process.

Using data to reduce return rates

Analysing data from returns is a powerful lever for anticipating and reducing future volumes. By identifying recurring reasons for returns (size, quality, incorrect description), companies can adjust their offer, improve product quality or refine customer communications.

According to an IMARC Group study, this approach can reduce the return rate by 10 to 15%, which represents substantial savings on logistics costs and an improvement in customer satisfaction (IMARC Group).

Issues by sector

Clothing and fashion

The clothing sector is particularly concerned by reverse logistics, as it has the highest return rates in e-commerce. According toMecalux, Up to 76% of online returns concern fashion (clothes, shoes, accessories). The main reasons are size errors, differences in colour or material, and a change of mind on the part of the consumer.

Returns rates in the clothing sector are in the region of 20%, and can be significantly higher depending on the type of product and the e-retailer’s returns policy.

Over 90% of returned items are generally 1st choice and can be resold. The challenge for this sector of activity will therefore be the speed with which returns are processed. Loyalty is a major issue in this sector, where customers have a particular affection for the brand. It is therefore essential to offer them an impeccable returns experience and fast refunds.

The speed with which returns are processed is a twofold issue, as it also affects the retailer’s margins. It will be essential to put items back on sale as quickly as possible so that they can be resold during the heart of the season and not during a promotional period.

To limit the financial and environmental impact of products that cannot be put back into 1st choice, companies are setting up solutions for resale in outlets, reconditioning or donations to associations. This helps to reduce textile waste and recycle unsold items.

Consumer electronics

In electronics and hi-tech, the return rate varies between 5% and 15% depending on the product.

Some of these returns are linked to malfunctions, damage or performance failures.

In this sector, companies favour repair, refurbishment or recycling to limit waste and meet regulatory requirements on electronic waste (WEEE). The sector is also benefiting from strong demand for reconditioned products, which are cheaper and more durable (Fortune Business Insights).

Generally speaking, reverse logistics is essential for managing defective products, end-of-life equipment and recalls. In 2024, more than 28% (Global Market Insights) of reverse logistics flows concerned the return of defective products.

Furniture and bulky items

The furniture sector presents specific logistical challenges due to the volume and weight of items. Returns often concern defects, damage in transit or ordering errors.

Return rates for bulky furniture are between 7% and 15%.

Companies are developing dedicated networks for collecting, refurbishing and recycling materials or donating them to associations. This approach limits storage and transport costs, while contributing to the circular economy (Research Nester).

Reverse Logistics and the circular economy

A high-potential market

Reverse logistics is an integral part of the circular economy. In 2023, 52% of online shoppers in France bought at least one refurbished or second-hand product, according to a study by Sellermania based on data from FEVAD. This trend illustrates consumers’ growing appetite for more sustainable purchasing models, while offering distributors an opportunity to generate new sources of revenue while limiting waste. This approach is part of a drive to reduce waste and make the most of resources.

Reconditioning helps to extend the life of products, while offering consumers more affordable and responsible alternatives. In addition, recycling materials from returns helps to reduce the consumption of virgin resources.

Case studies : Apple turns returns management into a sustainable asset

Major companies such as Apple have developed effective strategies to optimise the management of returns and limit their environmental and financial impact. Apple has developed a highly structured returns and reconditioning programme (Apple Environmental Progress Report, 2023), which recovers a large proportion of returned or used products for repair, reconditioning or secure recycling. Apple makes it easy to return products through a simplified service, extended return times during festive periods (such as Christmas), and a free recycling programme. These measures enhance customer satisfaction while helping to reduce electronic waste.

Best practices for circular reverse logistics

Encouraging second-hand products: More and more brands, such as Decathlon, are incorporating the resale of reconditioned products into their business model.
Set up recycling channels: Work with eco-organisations to ensure that waste is recycled.
Raising customer awareness: Encourage consumers to return used products to give them a second life.

Recyclage

Recycling is an essential step in reverse logistics, particularly for products that have reached the end of their life cycle or are beyond repair. In France, 88.6% of electrical equipment collected was recovered in 2023, including material and energy recycling and reuse (ADEME – Filière EEE, 2024).

This high rate reduces disposal costs, limits environmental impact and meets the requirements of the circular economy.
Companies are developing partnerships with eco-organisations and specialised channels to extract and recycle materials such as plastics, metals and electronic components. This strategy reduces dependence on virgin resources, promotes regulatory compliance and improves the environmental image of brands.

Technological solutions and their contribution

Digital technologies play a crucial role in optimising reverse logistics. The integration of digital solutions dedicated to returns management makes it possible to automate key processes, such as receiving, sorting, diagnosing and upgrading products. These tools improve the speed and reliability of processing while reducing operational costs.

Artificial intelligence (AI) and predictive analysis reinforce this dynamic by facilitating the analysis of returns flows, the detection of anomalies and the identification of products with a high probability of resale. These technologies also enable better planning of human and material resources, based on learning models derived from historical returns and customer behaviour.

In some sectors, traceability is also being enhanced by the Internet of Things (IoT) and RFID. These technologies provide real-time tracking of returned products, facilitate warranty management and improve transparency for customers. This increased visibility makes it possible to quickly identify malfunctions and optimise the distribution of products between resale, reconditioning or recycling.

Together, these technologies are helping to make reverse logistics more agile, efficient and sustainable, while delivering an enhanced customer experience.

Best practices and recommendations for successful reverse logistics

Digitalising the returns process: setting up simple, intuitive platforms for customers, with transparent tracking and rapid reimbursements.
Centralise and automate processing: Invest in dedicated hubs and automation technologies to reduce costs and lead times.
Analyse returns data: use the data to understand the causes of returns and improve products and communication.
Integrating sustainability: Encouraging reconditioning, resale and recycling to limit environmental impact.
Working with experts: Rely on specialist partners like Reversys to benefit from cutting-edge expertise and tailored solutions.
Training teams: Make employees aware of the challenges of reverse logistics to ensure that they support the approach.
Involving customers: Communicate the benefits of reverse logistics and encourage responsible behaviour.

Reverse Logistics : Beyond e-commerce

The reverse flow from shops to warehouses

Reverse logistics is often mentioned in the context of e-commerce activities.
However, reverse logistics is also an issue for physical retail. At the end of the season or after sales, goods sometimes need to be returned to free up sales floor space for the new collection.
Ce flux de retour, du magasin vers l’entrepôt, doit également être tracé et, selon sa nature, contrôlé en quantité et/ou en qualité avant sa réintégration en stock.
As with e-commerce flows, an appropriate organisation that facilitates sorting helps to optimise restocking operations.

B2B reverse logistics

Until now, e-commerce has mainly concerned B2C. However, with a slight time lag, B2B is also developing e-commerce sites, but with sometimes different problems. The quantities ordered can be much higher than those seen in B2C. What’s more, the quality of the service offered is essential if you are to stand out from the crowd of demanding professionals. The returns policy and the quality of its execution therefore represent a strategic challenge for companies marketing products to professionals.

Maintenance management

In certain industrial sectors, certain parts or equipment need to undergo regular preventive maintenance. This requires the implementation of reverse logistics, to collect the products, transport them to the company responsible for their maintenance (whether the original manufacturer or a specialist company), then collect them and return them to their customer.
The management of these flows is often a key element in this type of activity, as product maintenance is fully integrated into the company’s business model.
Implementing traceability and flow management solutions is essential to guarantee the quality and productivity of these processes.

Reversys: an innovative solution for controlling your returns

Reversys is an innovative French company specialising in collaborative e-commerce and retail returns management solutions. Its SaaS platform, designed specifically for reverse logistics, enables brands and retailers to effectively manage their returns flows (Reversys).

An optimised customer experience

Reversys facilitates the returns process for the end consumer with an intuitive interface and transparent tracking. Customers benefit from a simplified process, with faster refunds and clear communication throughout. This fluidity strengthens customer loyalty and the brand image of the retailer.

Responsible and efficient supply chain management

The Reversys platform incorporates advanced flow optimisation tools to reduce the carbon footprint associated with transporting returns. It also facilitates the intelligent sorting of products, their reconditioning or their channelling into recycling channels, thereby contributing to an efficient and more sustainable supply chain.

Traceability and real-time control

Reversys offers complete, real-time traceability of returns, with customisable key performance indicators. This visibility enables operational teams to make rapid, informed decisions, optimise costs and improve service quality.

Expert support and flexibility

In addition to technology, Reversys offers customised support tailored to the specific needs of each company. Its sector-specific expertise and pragmatic approach guarantee rapid and effective implementation, with a rapid return on investment.

This solution is perfectly suited to the needs of companies wishing to control their returns-related costs while improving their environmental impact and customer satisfaction.

Conclusion

Reverse logistics is undergoing radical change, driven by technological innovation, regulatory pressure, the transformation of logistics systems (brought about, among other things, by omnichannel technology and the development of marketplaces) and changing customer expectations. The next few years will see the rise of circularity, with widespread reconditioning, second-hand goods and intelligent recycling.

Reverse logistics is emerging as a strategic lever for French companies, generating operational savings of up to 30%, while improving customer satisfaction and environmental performance. Organisations that invest in automation, traceability, innovative solutions such as Reversys, and the circular economy are boosting their competitiveness in a demanding and responsible market.

Managing reverse flows is now a key success factor, combining economic performance, quality of service and sustainable commitment. Faced with these challenges, reverse logistics can no longer be seen as a constraint, but as a strategic opportunity to be seized.

Sources

our articles :

Why reverse logistics boosts customer satisfaction

Turn your returns into a loyalty lever with well-controlled reverse logistics.

Should reverse logistics be outsourced?

Optimising your product returns without losing control: finding the right balance.

Reducing reverse logistics costs

Reduce costs, improve the customer experience and increase efficiency with optimised reverse logistics.

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Reverse Logistics: A strategic lever for business performance