Closing the Loop: Transforming Reverse Logistics into a Growth Engine

Reverse logistics is the last thing anyone in logistics wants to talk about during the holiday season. Right now, the focus is squarely on outbound shipments—meeting tight deadlines, managing inventory, and ensuring that every package makes it to customers on time. For most businesses, it’s a high-stakes race to capitalize on the busiest shopping season of the year. But as packages leave the warehouse and the calendar slips by, another reality looms: the flood of returns. While everyone is scrambling to ship orders, few are adequately preparing for what comes next—a challenge that, if handled strategically, can become a significant opportunity for growth.

Returns are often viewed as the unwanted consequence of customer dissatisfaction or buying mistakes. Yet in today’s retail and e-commerce landscape, they are unavoidable and must be managed with intention. According to the National Retail Federation, U.S. retailers handled $816 billion in returns in 2022, accounting for 16.5% of total retail sales. For e-commerce, this figure rises to over 20%. These numbers make it clear: a robust reverse logistics process is not optional; it’s essential for turning challenges into opportunities.

Reverse logistics, the process of handling, inspecting, refurbishing, and reselling returned goods, is often overlooked in the supply chain. For many businesses, it is seen as a necessary evil rather than a competitive advantage. However, in today’s customer-centric business environment, a seamless returns process is vital for maintaining trust, driving loyalty, and fostering repeat sales.

The post-holiday period represents the most demanding time for reverse logistics. Returns flood warehouses as customers seek to exchange unwanted gifts or return defective items. Without an efficient system in place, this surge can overwhelm resources, leading to delays, inefficiencies, and customer dissatisfaction. Yet, businesses that prepare strategically can transform these challenges into growth opportunities.

The key to success lies in preparation, execution, and adaptability. Veryable ’s on-demand labor platform and Workforce Management (WFM) solution equip businesses with the tools to streamline reverse logistics processes, eliminate inefficiencies, and turn operational complexity into a competitive advantage.

Cost Savings, ROI, and Revenue Growth: Unlocking the Strategic Value in Reverse Logistics

 Reverse logistics holds untapped potential to drive profitability and strengthen customer relationships. While many businesses see it as a necessary expense, reverse logistics—when optimized—can reduce inefficiencies, generate savings, and directly impact revenue growth. It’s not just a part of your supply chain; it’s a reflection of your commitment to your customers.

The numbers speak for themselves. A Deloitte study found that effective returns management can reduce supply chain costs by 15-20%. Meanwhile, a study by Narvar revealed that 96% of customers are more likely to shop with a retailer again if they have a positive returns experience. These statistics show that reverse logistics is not just an operational task—it’s an opportunity to influence loyalty, retention, and profitability.

Veryable ’s pay-for-performance model addresses one of the biggest inefficiencies in reverse logistics: labor costs. Traditional staffing models often leave businesses overpaying for fixed labor during slower periods or scrambling to fill gaps during peak times. With Veryable , businesses only pay for the labor they use. This flexibility reduces overhead, freeing up resources that can be reinvested in technology, process improvement, or customer service enhancements.

Speed is also a critical factor. Every day a returned product sits idle in a warehouse, it loses value. A 2022 report by CBRE found that fast returns processing can reduce inventory carrying costs by up to 30%, translating directly to improved cash flow. Veryable ’s platform helps businesses accelerate returns processing, enabling products to be reintegrated into inventory or prepared for resale sooner. Faster turnaround times mean less capital tied up in deadstock and more opportunities to drive sales.

Customer loyalty is the ultimate prize. Research by Narvar also revealed that 70% of customers decide whether to shop with a retailer again based on their returns experience. A smooth and efficient returns process builds trust, demonstrating to customers that their needs are prioritized even after a sale is made. By excelling in reverse logistics, businesses strengthen their brand reputation and create a foundation for long-term growth.

Reverse logistics isn’t just about managing costs—it’s about delivering on your promise to customers while unlocking strategic value. With Veryable ’s on-demand labor solutions and flexible workforce management, businesses can reduce costs, improve ROI, and turn returns into a driver of customer loyalty and profitability. The question isn’t whether you can afford to optimize reverse logistics—it’s whether you can afford not to. 

Preparing for Post-Holiday Returns While Handling Holiday Volume

Reverse logistics is more than a series of tasks—it’s a promise to your customers. It’s your opportunity to turn what could be a moment of disappointment into a moment of trust. By creating a seamless returns process, you don’t just manage logistics; you protect your reputation, build loyalty, and open the door to future sales. 

The cornerstone of this promise lies in preparation. Before the first return is even initiated, businesses must establish workflows that reduce friction and eliminate delays. Every step of the process—whether it’s inspecting a product, reintegrating it into inventory, or responsibly discarding it—should be mapped out with clarity and precision. A well-designed process doesn’t just make operations efficient; it ensures you meet and exceed customer expectations.

Preparation also means understanding patterns. By analyzing historical returns data, businesses can identify trends in volume, product types, and customer behavior. For example, knowing which items are most frequently returned allows you to allocate resources where they are needed most. This predictive approach turns reactive chaos into proactive control, ensuring your operations are ready for what lies ahead.

Labor planning, often a sticking point, can also be transformed through preparation. Traditional staffing models struggle with the unpredictability of reverse logistics, leaving businesses either overstaffed or underprepared. But with Veryable’s on-demand labor marketplace, you no longer need to worry about capacity. Instead, you gain access to a dynamic pool of skilled operators who are ready to step in when needed, allowing you to focus on optimizing your processes without the distraction of fluctuating workforce demands.  Instead of focusing time and resources on acquiring labor, you can focus on applying it as needed.

Finally, preparation involves people. Everyone involved in the returns process—warehouse teams, customer service representatives, logistics managers—must understand their role in delivering excellence. Training, clear communication, and detailed documentation align your entire organization, providing the confidence and readiness needed to turn the post-holiday returns surge into a competitive advantage.

Deployment: Leveraging On-Demand Labor for Maximum Efficiency

Execution is where preparation transforms into results. By leveraging Veryable ’s on-demand labor platform, businesses can build a dynamic labor pool tailored to their unique reverse logistics needs. This process starts well before the holiday rush, as businesses bring on a diverse group of operators to begin processing early returns. These operators can be trained and upskilled in real-world workflows, gaining familiarity with the business’s processes and systems. By investing in this early-stage preparation, businesses not only reduce the initial backlog of returns but also establish a well-prepared workforce ready to tackle the post-holiday surge.

This proactive approach offers another distinct advantage: the ability to run reverse logistics efforts in parallel with outbound operations. While some operators focus on returns, others can remain dedicated to ensuring timely deliveries of new orders. This dual-track strategy allows businesses to maintain a steady product flow to customers while simultaneously enhancing the returns process. The result is a seamless operation that drives high customer satisfaction across both sales and returns, reinforcing loyalty during the critical holiday season.

Complex tasks, such as product refurbishment, can be assigned to more skilled workers, while simpler activities, like sorting or labeling, are handled by less experienced operators. This targeted deployment ensures that every aspect of reverse logistics is executed with precision, minimizing errors and maximizing productivity.

The Role of Veryable’s Workforce Management Platform

Veryable 's Workforce Management (WFM) platform is a game-changer for businesses looking to optimize their reverse logistics operations. The platform provides real-time insights into labor metrics, enabling managers to make data-driven decisions that enhance efficiency and productivity.

Dynamic scheduling is one of the platform’s standout features. Managers can adjust shifts and assignments in real-time, responding quickly to changes in return volumes. For example, if a particular warehouse experiences an unexpected surge in returns, labor resources can be reallocated immediately to address the bottleneck.

The platform also includes robust communication tools, allowing managers to send updates and instructions directly to operators. This reduces delays, improves coordination, and ensures that all team members are aligned on priorities. These features make Veryable’s WFM platform an indispensable tool for businesses aiming to excel in reverse logistics.

Turning Challenges into Opportunities

Reverse logistics isn’t just about processing returns; it’s about redefining how businesses handle complexity and deliver value. In the midst of the holiday rush, while all eyes are on outbound shipments, it’s the businesses that prepare for what comes next—the inevitable flood of returns—that stand apart. Those who see returns not as a burden but as an opportunity are the ones who thrive.

By leveraging Veryable on-demand labor and innovative tools like Veryable’s Workforce Management platform, businesses gain the agility to adapt, the efficiency to reduce costs, and the precision to deliver an exceptional customer experience. Returns don’t have to disrupt operations or erode profitability. Instead, they can build loyalty, recover revenue, and set the stage for long-term growth.

The most successful companies don’t just manage reverse logistics—they use it to reinforce their promises to customers. With the right preparation, execution, and mindset, returns become more than a process—they become an opportunity to lead, innovate, and grow.