The global reverse logistics market size is projected to reach USD 1,450.17 billion by 2030, growing at a CAGR of 9.4% from 2023 to 2030. One of the key factors contributing to the growth of the reverse logistics industry is the strict government regulations for product quality. One of the biggest threats faced by organizations is the risk associated with the quality of products. In addition to posing a serious threat to consumer safety, defective products can severely harm the organization's reputation and goodwill.
According to the National Retail Federation, 10% of overall online purchases were returned by customers in 2018 in the U. S. Over the past decade, the return of products has increased significantly. A purchase made online is returned three times more frequently than one purchased in a physical store due to digital problems, customer behaviors, and evolving business models exclusive to e-commerce. The increasing use of advanced technologies such as Automation, Robotics and Augmented Reality (A. R.A. R.) has enabled e-commerce companies to excel in efficiency and reachability.
An increasing number of consumers prefer online purchasing owing to benefits such as convenience, lead time, cost, and variety of choices. E-commerce businesses significantly depend on shipping and warehousing capabilities to transfer products from retailers or manufacturing units to end-users in a shorter lead time. Automation can be used to route customer return requests, create packaging and labeling materials, reduce wait times for returning items to physical stores, and offer customers the option to return orders by mail, among others.
Companies can use robotic process automation to contact consumers once the return request is initiated or to complete the return process and efficiently audit all operations. Automation can provide transparency in the return process to ensure that customers are aware of the process once they raise a request for a return, exchange, or submit a warranty claim. Moreover, it prevents fraud in the returns process.
The COVID-19 pandemic outbreak adversely impacted global supply chain operations. Logistics and transportation services encountered unprecedented challenges due to the pandemic. Lockdowns imposed in countries like the U. S., India, and the UK caused uncertainties in the movement of goods, placing strain on shipment companies. The logistics networks experienced disruptions due to supply and demand imbalances and reduced delivery capacity. Many nations encountered additional difficulties in their logistics activities owing to a limited workforce and reduced operational hours.
However, the COVID-19 pandemic had a positive impact on the growth of e-commerce platforms. With physical stores closed during lockdowns, there was a significant increase in e-commerce sales. Notably, in 2020-2021, the pandemic led to e-commerce sales amounting to USD 219 billion in the U. S., according to Digital Commerce 360. The surge in online sales consequently resulted in a rise in product returns by consumers worldwide. Moreover, the limited movement of goods and restrictions imposed by state and international governments caused delays in returns and refunds during the pandemic. In addition, businesses increasingly utilize return policies to distinguish themselves from their competitors.
According to the National Retail Federation, 10% of overall online purchases were returned by customers in 2018 in the U. S. Over the past decade, the return of products has increased significantly. A purchase made online is returned three times more frequently than one purchased in a physical store due to digital problems, customer behaviors, and evolving business models exclusive to e-commerce. The increasing use of advanced technologies such as Automation, Robotics and Augmented Reality (A. R.A. R.) has enabled e-commerce companies to excel in efficiency and reachability.
An increasing number of consumers prefer online purchasing owing to benefits such as convenience, lead time, cost, and variety of choices. E-commerce businesses significantly depend on shipping and warehousing capabilities to transfer products from retailers or manufacturing units to end-users in a shorter lead time. Automation can be used to route customer return requests, create packaging and labeling materials, reduce wait times for returning items to physical stores, and offer customers the option to return orders by mail, among others.
Companies can use robotic process automation to contact consumers once the return request is initiated or to complete the return process and efficiently audit all operations. Automation can provide transparency in the return process to ensure that customers are aware of the process once they raise a request for a return, exchange, or submit a warranty claim. Moreover, it prevents fraud in the returns process.
The COVID-19 pandemic outbreak adversely impacted global supply chain operations. Logistics and transportation services encountered unprecedented challenges due to the pandemic. Lockdowns imposed in countries like the U. S., India, and the UK caused uncertainties in the movement of goods, placing strain on shipment companies. The logistics networks experienced disruptions due to supply and demand imbalances and reduced delivery capacity. Many nations encountered additional difficulties in their logistics activities owing to a limited workforce and reduced operational hours.
However, the COVID-19 pandemic had a positive impact on the growth of e-commerce platforms. With physical stores closed during lockdowns, there was a significant increase in e-commerce sales. Notably, in 2020-2021, the pandemic led to e-commerce sales amounting to USD 219 billion in the U. S., according to Digital Commerce 360. The surge in online sales consequently resulted in a rise in product returns by consumers worldwide. Moreover, the limited movement of goods and restrictions imposed by state and international governments caused delays in returns and refunds during the pandemic. In addition, businesses increasingly utilize return policies to distinguish themselves from their competitors.
Reverse Logistics Market Report Highlights
- In terms of return type, the B2B returns and commercial returns segment is anticipated to hold the largest revenue share in the overall market by 2030, registering the fastest CAGR of 10.2% over the forecast period. This growth can be attributed to various factors that have influenced the dynamics of the industry. One of the primary drivers behind the rise in B2B returns is the increasing emphasis on sustainability and environmental responsibility
- In terms of service, the transportation segment dominated the market in 2022, gaining a revenue share of 45.76%. In the reverse logistics setting, transportation refers to the transport and distribution of returned or replaced merchandise
- In terms of the end-user industry, the retail & e-commerce segment dominated the overall market in 2022 attaining a revenue share of 49.91%. The segment has experienced significant growth within reverse logistics. This segment specifically focuses on managing product returns within the retail and e-commerce sectors
- In October 2022, Deutsche Post AG (DHL GROUP) supply chain introduced a fresh recovery management solution to decrease electronic waste. The new circular supply chain solution assisted businesses in facilitating adequate recycling, remanufacturing, or reusing of used electronic parts such as processors, touchscreens, computer modules, and technological assets
- The growth of retail & e-commerce in the reverse logistics industry has been significant over the years and continues to expand rapidly. With the increasing popularity of online shopping, customers have the convenience of purchasing products remotely. However, this has also led to a higher volume of product returns. As a result, retailers and e-commerce companies require robust reverse logistics processes to handle the influx of returned items effectively
- Key players in the market include United Parcel Service, Inc.; Deutsche Post AG; FedEx Corporation; CEVA Logistics; and DB SCHENKER (Deutsche Bahn AG)
Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. Market Variables, Trends, & Scope Outlook
Chapter 4. Reverse Logistics Market Return Type Outlook
Chapter 5. Reverse Logistics Market Service Outlook
Chapter 6. Reverse Logistics Market End-user Industry Outlook
Chapter 7. Reverse Logistics Market: Regional Estimates & Trend Analysis
Chapter 8. Reverse Logistics Market Competitive Landscape
List of Tables
List of Figures
Companies Mentioned
- DB SCHENKER (Deutsche Bahn AG)
- Deutsche Post AG
- FedEx Corporation
- Kintetsu World Express, Inc.
- United Parcel Service, Inc.
- Yusen Logistics Co., Ltd.
- RLG Systems AG
- Core Logistic Private Limited
- Safexpress Pvt. Ltd.
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 74 |
Published | August 2023 |
Forecast Period | 2022 - 2030 |
Estimated Market Value ( USD | $ 731.3 Billion |
Forecasted Market Value ( USD | $ 1450.17 Billion |
Compound Annual Growth Rate | 9.4% |
Regions Covered | Global |
No. of Companies Mentioned | 9 |