Reverse Logistics & Returns Management

Reverse logistics and returns management providers handle product returns, warranty claims, refurbishment, and disposition of returned goods for e-commerce businesses and manufacturers.

With e-commerce returns averaging 20-30% of orders and retailers struggling with returns processing, reverse logistics providers generate revenue of $150,000-$480,000 annually with profit margins of 20-35% through processing fees and recovery on resold items.

The business requires facility space for receiving and processing returns, quality control systems, relationships with liquidation channels, and understanding of returns processing workflows.

Services include returns receiving and inspection, quality testing and grading, refurbishment and repackaging, warranty claims processing, returns data analytics, product liquidation, and recycling/disposal of unsellable items.

Pricing typically includes per-unit processing fees ($3-$12 depending on product) plus percentage of recovery value from resales.

Success factors include efficient processing to minimize costs, multiple disposition channels (resale, liquidation, recycling), strong quality control, and data analytics to help clients reduce return rates.

Common clients include e-commerce sellers with high return volumes, consumer electronics companies, apparel retailers, and home goods sellers.

The business can start with specific product categories and expand based on expertise.

Marketing focuses on demonstrating recovery rates and cost savings compared to in-house processing.

With e-commerce returns continuing to grow in 2025 and businesses seeking to recover value from returns, reverse logistics offers opportunities for entrepreneurs who can build efficient processing operations that maximize recovery value while minimizing costs.