A reverse logistics company specializes in managing the flow of goods from customers back through the supply chain. These providers handle returns processing, product inspection, refurbishing, recycling, and disposal.
They offer services including pickup coordination, warehouse management for returned items, quality assessment, repair services, and remarketing to secondary markets.
The 7 R’s of reverse logistics are:
Returns (managing customer returns)
Recalls (handling product recalls)
Repairs (fixing defective items)
Repackaging (preparing items for resale)
Refurbishment (restoring products to like-new condition)
Recycling (processing materials for reuse)
Remanufacturing (rebuilding products from used components)
The top 10 reverse logistics companies globally include UPS, FedEx, DHL, XPO Logistics, CH Robinson, DSV, Kuehne + Nagel, DB Schenker, CEVA Logistics, and Nippon Yusen.
These industry leaders offer comprehensive logistics services, including forward logistics, reverse logistics, warehousing, transportation management, and supply chain consulting across multiple countries and industries.
A simple example of reverse logistics is an online clothing return. A customer starts a return, ships the item back, it’s inspected at a returns center, and then it’s either restocked, resold through outlet channels, or recycled.
Retailers like H&M and ZARA also use reusable tote boxes that get sent back on the same trucks delivering new inventory, reducing empty miles and waste.
Reverse logistics typically costs anywhere from $20 to $40 per return, depending on item size, volume, and service level. Smaller items usually fall in the $5 to $15 range, while large goods like furniture can cost $150–$200.
Some providers also charge 20–65% of the product’s value for full-service processing, with volume discounts and monthly plans often lowering overall costs.
Yes, many reverse logistics companies work with small businesses. Providers like ShipBob and ShipWizard offer flexible, scalable plans, and smaller teams can also handle returns in-house using route optimization software to keep costs low and processes simple.
Returns management is just one part of reverse logistics. It handles customer returns, while reverse logistics covers everything moving backward in the supply chain, like returns, repairs, recalls, recycling, and end-of-life product handling.
Leading reverse logistics providers contribute to sustainability through extending product lifecycles through refurbishment, running zero-landfill and recycling programs, cutting emissions with optimized routes, and supporting circular economy practices. Many also provide environmental impact reporting.