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Reverse logistics is the set of activities that is conducted after the sale of a product to recapture value and end the product's lifecycle. It typically involves returning a product to the manufacturer, distributor, seller or to the Ecommerce Company / Portal for servicing, refurbishment, recycling, exchange or cancellation of the sales.
Reverse logistics presents one of the biggest operational challenges in the world of Ecommerce freight logistics due to the sheer volume and cost of processing returns. Effective reverse logistics is believed to result in direct benefits, including improved customer satisfaction, decreased resource investment levels, and reductions in storage and distribution costs. The amount of returned goods going backwards along the supply chain from the end point (customers) is usually much more than people normally think.