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.