Enhancing Reverse Logistics and Reducing Damage Rates with Pregis Protective Products
Discover the 2023 retail shift with $1.4 trillion in online sales, 27% of the $5.1 trillion market. Unveil return trends, including the BORIS model, and the surge in demand for seamless processes. Explore Pregis products transforming reverse logistics with automation and sustainable packaging.
In 2023, the landscape of retail sales underwent a significant shift, with online sales contributing $1.4 trillion out of the total $5.1 trillion. This marked a substantial 27% of the retail market. However, the surge in online sales also brought about challenges in managing returns, amounting to roughly $250 billion.
The Return Landscape
Of the $1.4 trillion in online sales, nearly 18% or $123 billion were returned, and half of these returns were facilitated in-store through the BORIS model (Buy Online Return In Store). Interestingly, 23% of customers opted for third-party services, while 16% preferred dedicated reverse logistics services. On the other hand, 44% of customers allocated warehouse space for handling returns.
Consumer Expectations
Despite the escalating volume of returns, a staggering 80% of consumers expect free and easy return processes. Unfortunately, only 49% of online retailers are currently meeting this consumer demand.
Positive Trends
A positive trend emerged in consumer perceptions, with 67% favoring brands that offer in-store returns (source: Adyen Retail Report 2023 US).
Repackaging for Resale
Among the most frequently returned products, such as apparel, footwear, and accessories (26% of returns), retailers face the challenge of repackaging goods approved for resale. Pregis AMB solutions come to the rescue, offering automated bagging with printed labels, serial numbers, and stocking locations. This not only streamlines the process but also yields typical efficiency gains of 3 or 4 manual workers to 1 worker on an automated bagging system.
Electronics Handling
Electronics constitute the second most returned category, with an 11% return rate. To address this, Pregis recommends using the Airspeed HC PCR, an 80% post-consumer recycled content air cushioning that ensures safe shipping and minimizes a business's carbon footprint.
Conclusion
As the e-commerce landscape evolves, managing returns and minimizing damage rates become paramount. Pregis protective products offer practical solutions, from streamlining in-store returns to sustainable packaging for electronics. For further information on how Pregis can enhance your reverse logistics and reduce damage rates, please contact us today!
