The increased share of retail holiday sales being done online amid the pandemic will lead to a corresponding flood of returns back into the supply chain, creating reverse-logistics challenges for retailers and third-party logistics operators (3PLs), according to a report by CBRE. Effective real estate and supply chain management can help ease the stress of holiday returns.
Highlights include:
Given the stay-at-home environment, total online holiday sales are forecast to jump by 40 percent this year to $234.9 billion.
Up to $70.5 billion worth of these holiday purchases are expected to be returned—a process commonly known as reverse logistics.
E-commerce returns cause enormous stress to distribution networks, adding significant costs for retailers. For the average return, reverse logistics costs amount to 59 percent of the original sales price of the item.
Reverse logistics is creating opportunities for 3PLs, which drive a large amount
