The global reverse logistics market size was estimated at USD 731.30 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. The global expansion of e-commerce businesses and the increasing frequency of returns and replacements of products have propelled the demand for reverse logistics services. Increasing product recalls due to strict government rules and product quality standards is expected to boost market growth. A competent reverse logistics solution has become essential owing to the expansion of e-commerce businesses worldwide. The demand for returning goods in a simpler way is increasing as the e-commerce industry/business is significantly expanding.

The e-commerce service providers emphasize reverse logistics as certain customers prefer to initially analyze the ordered products physically and then decide whether to keep them. If the product is not worth buying, customers can return it with the help of reverse logistics. For instance, buyers can only test clothing after making a purchase decision, especially for online shopping.

The frequency of returns and replacement items, necessitating a reverse logistics service, has propelled owing to the expansion of e-commerce businesses worldwide. Returns are more prevalent when customers shop online, as adding products into a virtual shopping cart is simple, but the appearance or fit of the product can be only verified physically. According to National Retail Federation, in 2021 online sales were approximately 23% of the total USD 4.583 trillion retail sales in the U.S. In addition, unwanted purchases and return to retailers' storefronts and warehouses are causing businesses a headache, bearing the loss.

The increasing use of advanced technologies such as Automation, Robotics, and Augmented Reality (A.R.A.R.) has enabled e-commerce companies to excel in efficiency and reachability. An increasing number of consumers prefer online purchasing over in-store purchasing owing to benefits such as convenience, lead time, cost, and variety of choices. E-commerce businesses significantly depend on shipping and warehousing capabilities to transfer products from retailers or manufacturing units to end-users in a shorter lead time.

Automation can route customer return requests, create packaging and labeling materials, reduce wait times for returning items to physical stores, and offer customers the option to return orders by mail, among others. Companies can use robotic process automation to contact consumers once the return request is initiated or to complete the return process and audit all operations efficiently. Automation can provide transparency in the return process to ensure that customers remain updated on the process once they raise a request for a return, exchange, or submit a warranty claim. Moreover, it helps in preventing fraud in the returns process.

Detailed Segmentation:

Return Type Insights

Based on return type, the market is classified into recall returns, B2B returns and commercial returns, repairable returns, end-of-use returns, and end-of-life returns. The B2B and commercial returns segment dominated the market with the largest revenue share of 34.59% in 2022 and it is witnessing a CAGR of 10.2% for the forecast period from 2023 to 2030.

Service Insights

In terms of service, the market is classified into warehousing, transportation, replacement management, reselling, refund management, and others. Among these, the transportation segment dominated in 2022, gaining a revenue share of 45.76%. It is anticipated to witness a CAGR of 9.8% during the forecast period.

End-user Industry Insights

In terms of the end-user industry, the market is classified into retail & e-commerce, automotive, consumer electronics, healthcare, and others. The retail & e-commerce segment dominated the overall market in 2022 attaining a revenue share of 49.91%. It is anticipated to witness a CAGR of 10.2% during the forecast period. 

Regional Insights

Asia Pacific led the overall market in 2022, with a revenue share of 52.68%. The region is anticipated to retain its dominance over the forecast period owing to the growing popularity of fashionable apparel among the young population. The growth is also driven by the high proliferation of the e-commerce industry and the rapid growth of e-commerce activities in countries such as India and China. The growing use of e-commerce results in increasing returns, which is expected to contribute to regional market growth.

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Global Reverse Logistics Market Report Segmentation

Grand View Research has segmented the global reverse logistics market report based on return type, service, end-user industry, and region:

• Return Type Outlook (Revenue, USD Billion, 2017 - 2030)
  • Recall Returns
  • B2B Returns and Commercial Returns
  • Repairable Returns
  • End of Use Returns
  • End of Life Returns
• Service Outlook (Revenue, USD Billion, 2017 - 2030)
  • Transportation
  • Warehousing
  • Reselling
  • Replacement Management
  • Refund Management
  • Others
• End-user Industry Outlook (Revenue, USD Billion, 2017 - 2030)
  • Retail & E-commerce
    • Clothing
    • Electronic Devices
    • Footwear
    • Home Décor
    • Others
  • Automotive
    • Spare Parts
    • Lubricants
    • Vehicle Accessories
  • Consumer Electronics
    • Refrigerator
    • Television
    • Air-Conditioner
    • Grinder
    • Others
  • Healthcare
    • Medicine
    • Personal Care Products
  • Others
• Regional Outlook (Revenue, USD Billion, 2017 - 2030)
  • North America
    • US
    • Canada
  • Europe
    • Germany
    • UK
    • France
  • Asia Pacific
    • China
    • India
    • Japan
  • Latin America
    • Brazil
    • Argentina
  • Middle East & Africa
    • GCC
    • South Africa

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