Returns Processing (Reverse Logistics)
Warehouse OperationsReturns processing, also known as reverse logistics, is the process of handling merchandise returned by customers. This includes receiving returned items, inspecting them, documenting the return reason, processing refunds or exchanges, and restocking inventory. Returns processing is costly and complex, involving manual inspection, potential refurbishment, and disposal of unsaleable items. Many 3PLs offer returns processing services, and some e-commerce businesses outsource this function entirely to focus on forward fulfillment.
Related Terms
Order Fulfillment
Order fulfillment is the complete process of receiving, processing, picking, packing, and shipping customer orders.
3PL (Third-Party Logistics)
A third-party logistics provider (3PL) is an external company that specializes in warehousing, fulfillment, and distribution services.
WMS (Warehouse Management System)
A Warehouse Management System (WMS) is software that controls and optimizes warehouse operations including inventory tracking, picking, packing, shipping, and receiving.