Reverse Logistics in E-Commerce

With increasing consumers in ecommerce industry, reverse logistics (RL) has been become a segment which the manufacturers and retailers cannot overlook. However, managing these returns endures significant costs through inventory, logistics and disposal and recycle, many of the organizations seem to employ inefficient procedure for dealing with these returns. Considering the tightness of the budget in companies, improvising the process of reverse logistics will have an impact on the overall company performance. The companies majorly focus on providing best of customer services with great quality products and price, emphasizing on the forward logistics. However, the design and planning choices are essential to be measured with reverse logistics system.

From 1980s to mid of 1990s, the scope of RL was restricted to the movement of materials against the primary flow. With time, the definition was refined and new definitions started to emerge. Now, RL can be defined as all activity related with a product/ service after the point of sale, the ultimate goal to optimize or make more efficient aftermarket activity, thus saving money and environmental resources’. RL could be the outcome of three causes:

  • Initiatives from consumer, where the consumer returned imperfect products back to the business
  • Initiatives from industries where from industry can recycle products that are defective.
  • Initiatives from government where the government sets regulations to recall products.


reverse logistics flowIn the event that you run an e-commerce store or are contemplating putting your fabricated, re-made, or conveyance inventory on the web, item returns are unavoidable. Reverse logistics in an e-commerce environment is a challenging to your business. Client administration is crucial to getting and keeping your online clients. The treatment of your client item returns is a vital segment of your client administration program.

Keeping in mind the end goal to adequately manage item returns, you have to guarantee you are tending to the necessities of your clients, as well as the requirements of your organization to guarantee you are minimizing the expense and effects of the profits on your organization since they can have an exceptionally noteworthy effect on your benefits.

With a specific end goal to survey and dissect your e-commerce Reverse Logistics, you have to comprehend the key parts for viable e-commerce reverse logistics. The key segments are returns strategy, returns receiving, accepting, ship an exchange or issue a credit, review and sorting, lastly resource recuperation which can be comprised of restocking, repackaging available to be purchased, return to merchant and scrap.

Reverse logistics in e-commerce are an inescapable truth of online retail. As the understanding of online categories got to be obvious in the most recent three years, the significance of setting up a reverse logistics process as a component of your e-commerce logistics methodology increments too. Give an awful returns experience and, you without a doubt, lessen the shot of a client returning for a repeat purchase. That is the reason numerous associations want to outsource their reverse logistics and e-commerce logistics.

Numerous shippers don’t see the taking care of and handling of RL in e-commerce as a centre of competency. Various organizations have outsourced accomplices in one or more of the key RL regions, for example, transportation administration, returned merchandise handling, e-commerce logistics innovation, and administrations, for example, like freight claims, accounting, and carrier relations.

It is critical to comprehend the procedures you require before you outsource, so you can characterize what should be done, how it should be done and how to scale achievement so you can adequately pick which partner can best fit your needs.



The Evolution of Logistics from Direct-to-Store Model to E-Commerce

E-commerce logistics is the hottest big thing that can change logistics and physical distribution networks. Over the past 40 years, e-commerce logistics has grew extensively in developed economies.

From a distribution property perspective, this evolution has passed through various general phases, which can be seen in the infographic below:

evolution of logistics infographic

Just to elaborate on the above infographic,

  • In the 1970s, most retail stores were replenished by direct deliveries from suppliers or wholesalers
  • In the 1980s, retailers started to centralize their store deliveries through new distribution centres which they controlled
  • In the 1990s, global sourcing (for non-food products) took off, with many retailers developing import centres to receive and process mostly containerized imports
  • From around 2000, e-commerce began to rapidly expand with pure-play (internet only) retailers leading the way in establishing e-fulfilment distribution networks

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Why is logistics efficiency so important now.

Every experience a customer has, can be made better.

Something as simple as this quote can lay the essential foundation for any corporation, in fact it should. In the world of Logistics, this indeed came out of the blue, like Godzilla, to impact their way of operating. It has become certain now that Logistics cannot be coined as ‘efficient’ just by providing low costs or having a major chunk of market share.

But why is it necessary to be efficient? Simple. The answer is sustainable growth.

In this era, most logistics companies are under the assumption that a good market share would help them sustain. They give away their services at dirt-cheap prices and quickly grow to establish themselves. Here’s the thing, they have misunderstood what sustainable growth means. It is NOT just business growth, but it is an expression that has expanded on the idea of ‘what are the responsibilities of business beyond satisfying shareholders?

One thing must be embedded into our minds: ‘Customer is always right’. This era is more customer-centric rather than product-centric. The customer knows everything and has endless expectations to be fulfilled. If you fulfil those, and also keep you company’s numbers in green, then you will know you are efficient.

customer experience

Typically, logistics companies face troubles like product returns, delays in delivery, high cost of manpower among others. Here lies the challenge. How would you create an effective logistics plan to minimise the effect? For that, you must follow these practices:

  1. Plan ahead, make it fool proof. Keep a minimal chance of failure or a breakdown in the chain, and know how to eliminate the possibility of any delays.
  2. Remember Murphy’s Law: if something can go wrong, it will. So always create contingency plans.
  3. Always learn from your mistakes.

By implementing an effective logistics plan you can ensure that

  • The number of returns and delays will reduce as there will be a lesser possibility of delivery the wrong product at the wrong place and wrong time
  • The delivery timelines will improve, which will enable you to cater to a larger customer and, in that way, improve profits
  • The manpower needs and incidental losses will substantially reduce.
  • There will be customer satisfaction and, in so doing, an enhancement in customer confidence
Image Coutesy:


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Don’t wait for special occasions to gift something. Surprise your family and friends.

One doesn’t need to gift on the Special Day to surprise another. It’s the thought behind the gift that brings the true meaning of surprise.

First and foremost, let’s look at why we give gifts.

May be it’s a tradition like giving gifts on birthdays, anniversaries, festivals; or you want to mark milestones and achievements, or you want to give it as a token of appreciation, or for some cause.

But here’s the real question: Why should there be a reason to give gifts? One can simply give a gift just like that, right? YES! And it is also the best kind of gift. It truly brings a genuine sense of surprise on the face, just like the face of Mr. Bean (Actor Rowan Atkinson) in the movie Mr. Bean’s Holiday when he found the lottery ticket number 919.

mr bean suprised

We believe that surprises can be ‘surprising’ when you put in your thoughts and a personalised touch to the gift. That’s why we are here to help you with some unique and creative ideas which would need your effort to make them as the perfect surprise gift.

  • Mix tape USB drive: Music is the best way to express yourself without saying a word. Just pick their favourite songs, create a playlist and add it into a USB drive. You can also put some extra effort like customising the USB drive by adding some special message on it.
usb drive
  • Your skills: Are you really good at arts and craft? Make something. Have a knack for singing? Take them to a karaoke. Are you a video-making enthusiast? Shoot a beautiful video like a testimonial. Use your natural talents, be original, and have fun.
  • Prepare a favourite family recipe: Simple idea, but it will put a big smile on your family’s face. But remember, keep it a surprise, don’t go around asking for the recipe. You need to know it well.

 food recipe'

  • Food for friends that they love but don’t buy or can’t find: Is your friend living away from home and can’t find his favourite food? Or is he/she just a miser? You know what you have to do.


  • A bottle of their favourite drink: Be it wine, whiskey, scotch or something else, there’s always a time to enjoy our favourite drink with our favourite person. Rest assured, you will be the favourite person.


  • A nice glass: A fine person, with a fine taste of drink, loves a fine collection of glasses. It adds up to their stunning collection. Buy a pair of glasses, you might need one the next time you go and share a drink.


  • Electronic Accessories: Gift them something simple and inexpensive as a Bluetooth headset or speaker, an external battery pack, a pair of good headphones or a wireless charger.


  • Clothes: There’s a sweet feeling that one gets when they put on a dress, shirt or a jacket that you gifted them. It’s the simplest idea, it would test your taste of fashion for them, and it isn’t too expensive. Be ready to get a lot of love if you get it just right.


  • Personal gift basket: Now this idea would need a lot of thinking. It needs to start with a gift basket and end with a wrap and a sweet message. Whatever you add in the basket, make sure that those are useful for day to day use.

personalised gift basket

  • Movie night basket: With this, you will end up watching a great movie with a fine drink, some popcorn and a memory you won’t forget.

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Reverse Logistics and its Pros & Cons

If Reverse Logistics were a person, it would say ‘It’s time to clean up the mess!’

Reverse logistics refers to the process of moving goods from their typical journey’s end, for the purpose of apprehending value or ensuring proper discarding. Remanufacturing and revamping activities also may be included in the definition of reverse logistics.

Usually, logistics deal with events that bring the product towards the customer. In the case of reverse logistics, goods move from the customer to the distributor or to the manufacturer.

reverse logisticsflow

Reverse logistics involves the progression of the product upwards the supply chain structure after its sales. In other words, reverse logistics takes place when the product is returned by the customer if it is damaged or not as per what the customer desires. The product would go the other way through the supply chain grid for the purpose of recalling any use from such product.

Reverse logistics has garnered a lot of attention in recent years. Yet, many companies haven’t fully comprehended its prominence. As a matter of fact, reverse logistics is considered to be more of an annoyance, an expensive and recurring headache.

One thing to acknowledge is that the amount of returned goods from the final destination (customer) is much more than people ponder. As an example, about 3% to (as high as) 50% of total shipments across all industries are just absolute returns caused in the companies. About 3%-5% of total revenue constitute as a cost of returns, as per research. Understanding the importance of reverse logistics, its neglect in the corporate world opens a chance to generate and accomplish customer relationships and build customer loyalty.

There are many advantages of Reverse Logistics such as financial gains along with social and environmental benefits.

  • It lets a trader collect products from the consumer or drive unsold products back to the manufacturer to be dissembled, organised, reassembled or reprocessed; lessening overall costs for an organisation.
  • Reverse logistics result in increased product lifecycles, diminished supply chain intricacy, sustainable practices and consumer preferences; which have to be improved on to maintain productivity and growth.
  • Gains include retaining customers by refining service goals and meeting sustainability goals.
  • More value can be mined from used/returned goods instead of utilising ineffective manpower, time and costs of raw materials involved in the original supply chain.
  • It also results in enhanced customer satisfaction and loyalty by looking into faulty goods and its repairs.

As compared to its advantages, one may find the following disadvantages too. But keep in mind, these can be removed by proper planning and execution of reverse logistics strategy.

  • If third party logistics are involved, there is a chance of loss of control. It is particularly eminent in outbound logistics where the third party logistics provider does not communicate or interact with the firm’s customer or supplier in depth.
  • Unexpected fees are incurred, like labour cost. Specific costs in this category can be customer relations and service labour costs, financial reconciliation labour costs, warehousing costs among others.
  • Cycle times tend to be longer. It refers to the time an organisation takes to routinely fill customer orders and related activities.

One must understand that reverse logistics plays an important role in the growth of an organisation, whether it’s financial, social or environmental gains. Because, in the end, the real mission of any organisation is ‘Customer Satisfaction’.

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Save Your Time, Money and Effort with GoPigeon

Time, effort and money. Every decision revolves around these resources. The real question has always been how to save them and how to optimally utilise them.

save time money and effort

GoPigeon helps you with providing one stop solution in courier service in the most effective way. We will pick your package and ship it to the desired destination, whether it be anywhere in India or overseas. Currently, we have shipped in across 25000+ pin codes all over India and are still exploring every nook and corner of the country.

GoPigeon is the right Single-Point-of-Contact for you. We make sure that the package is delivered through the right channel, in the right condition, at the right price and on the right time.

Well, how do we manage to do so? See it for yourself –

·         Door-to-door logistics service:

Our team of skilled Pigeons will pick up your package from your location. All you need to do is download the GoPigeon app from the Google Play Store and follow these 3 simple steps:

i.            Snap a picture of the package

ii.            Enter the details of the recipient

iii.            Choose a service from the various options available


·         Cost Effective:

GoPigeon offers you the lowest cost among all logistics service providers. You can be rest assured, you will definitely save up to 30% when you choose us.

·         Optimised Delivery:

Once we pick the package from your location, we will ship it using the most efficient and reliable options for a speedy and timely delivery. Be it air or road, the shipment is delivered at the destination at the right time, because we believe in precision and punctuality.

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Got items left from the wedding? Get those picked and shipped by GoPigeon

Weddings last long. After all, one must socialise with guests the size of an ‘army’, dance like there is no tomorrow, and eat and drink like Kumbhakarna. At the end of the wedding, all that one would want to do is go home, get into pyjamas and sleep like a baby. But that never happens, because there are things you need to clear out from the wedding venue. The contractors would take away the decorations, the chairs, tables, cutlery and everything else, yet you still are left with some things.

Well, worry not! We are there to take care of it, because we pick, we pack and we ship. Basically we do the whole thing for you. Nice, right? So let’s look at the things that are always left at the end of the wedding.


  1. Food: Always! How many weddings can you remember where there wasn’t any food left or wasted? We think that these leftovers can be fed to the needy and the poor. We can pack them and send them to NGOs, Old age homes or temples, wherever you can find people who would relish tasty food.


  1. Alcohol and other beverages: These are expensive and really hard to carry. We will make sure that these are delivered to your doorstep, every drop of it!


  1. Flowers: You would want those beautiful flower baskets and bouquets back at your place. The whole place just livens up and they smell so good. We will get them all too for you, all fresh and sweet-smelling. Got too many of these? Well, we recommend you to donate those to old age homes, orphanages and hospitals. You will be glad once you would know that you have put smiles on many faces with that small gesture.


  1. Gifts and return gifts: Gifts, gifts and more gifts. The bride and the groom are showered with these gifts that a van could be filled with these, easily. And what about the return gifts for the guests who couldn’t show up? We will get them all for you and ship them safe with uttermost care, just like a gift should. Big or small, in the end, all gifts are precious!

If we missed out on anything else, do let us know by commenting on this article, or mentioning it on our facebook page. We will get them too for you.

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