Reverse logistics
Handling returns. A cost centre that is also a retention opportunity.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Reverse logistics is the process of goods coming back: returns, exchanges, repairs, recycling and disposal.
Why it matters
Consumer law gives a 14-day cancellation right on most distance sales regardless of fault, so returns are not optional and the process is part of the product.
What it looks like in practice
Make it easy and measure it. An easy returns policy increases conversion more than it increases returns, which is counter-intuitive and well evidenced.\n\nGrade returned stock properly — resaleable, refurbish, write off — rather than treating it all the same.
What to watch out for
A returns rate that is a product problem rather than a logistics one. If one item is returned at three times the rate of everything else, the description or the sizing is wrong.
Where to get proper advice
Business Companion for the legal minimum. Your own returns data by product.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
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