Market Size of US Reverse Logistics Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 11.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Reverse Logistics Market Analysis
- Online shopping and sales continue to grow at a rapid pace. As retailers and delivery companies move increasing numbers of outbound packages, they must also address the issue of rising volume of return goods. Around USD 120 billion of e-commerce purchases were returned in 2017. Online purchased goods are three times more likely to be returned than those made in a general physical store. Though returns pose challenges for retailers, they find it challenging to limit returns because customers increasingly see returns as a critical part of online shopping experience. The reputation for fast, free, and friendly returns can earn customer loyalty, while a poor return experience can easily drive them away. With GBP 5 billion worth of returns ending up in landfills, apart from the waste from packaging, retailers are also struggling to make their reverse supply chains highly sustainable. To control the associated costs and improve customer experience, retailers are trying several strategies. Retailers with an existing physical presence have started embracing omnichannel returns, allowing returns of online purchases at existing physical stores. Emerging technologies, such as automated parcel lockers, and smartphone apps, are creating a more seamless return experience. However, retailers still see returns as a significant challenge to be overcome, and as a cost center, which has created opportunities for innovation for all players in the reverse logistics industry.
- Reverse logistics is more complicated than forward logistics. Retailers want shipping companies that create new efficiencies and cut costs. According to an industry survey, 60% of active online shoppers say that free returns are a vital part of a good returns experience.
- The US auto industry recorded the sales of 17.3 million vehicles in 2018, beating the industry expectations. Reverse logistics cost in the US auto and auto components industry is significant.
- Additionally, companies are looking to outsource non-traditional logistics requirements, such as reverse logistics, order processing, inventory management, distribution, and labeling and packaging. This is expected to provide more opportunities for logistics service providers (LSPs).
