E-commerce · Logistics
Returns and reverse-logistics economics
Published · Reviewed by The Diligence Standard Team · Updated
Refund cost extends beyond revenue reversal to postage, inspection, refurbishment, restocking, disposal, fraud and lost recoverable value.
Records to reconcile
- Return events and reason codes
- Reverse-logistics and disposal invoices
- Recovery, resale and refurbishment records
Warning signal
Management reports return rate but not the full cost or recovery outcome.
Transaction impact
Product and channel contribution may be overstated.
Response
Build net recovery by SKU and reason, then target the highest-value operational causes.