KNOWLEDGE Base SPONSORED CONTENT
4 Ways a 3PL Can Improve Your Post-Peak Returns Rush
Many retailers report they would get extra help from third-party logistics (3PL) providers to manage returns. Here are four ways your 3PL can help you with the post-peak returns rush.
R etailers understand that a signi cant portion of sales will inevitably get returned by consumers, with online sales boasting even higher return rates. Unfortunately, 16.9% of all goods sold in 2024 will be returned, and return rates for goods sold online will average 21% higher than overall returns, according to data from the National Retail Federation (NRF). While these numbers create signi cant challenges for the retail industry, they pale compared to projections around holiday returns. The same NRF data reveals that holiday season returns will be 17% higher than the annual average, so sellers will nd their warehouses potentially overwhelmed with returned goods in the New Year. While the burden of holiday season returns isn’t a new problem, it’s one that exceeds the operational capabilities of many retailers each year. MANAGING HOLIDAY RETURNS WITH A 3PL To address this annual problem, 40% of retailers told the NRF they would get extra help from third-party logistics (3PL) providers to manage returns. Here are four ways your 3PL can help you effectively handle returned goods: 1. Scalable Logistics Infrastructure 3PLs that work with retailers are already purpose-built to handle uctuations in demand, which means they don’t need to invest in new warehouses, equipment, or technology to accommodate extra returns volume. Usable items will go back into inventory and unusable inventory will get
• Inspection technologies and processes • Established donation, recycling, and disposal channels • Best practices in place for receiving and processing returns 4. Freeing Up Retailer Resources By partnering with a logistics provider, retailers can focus internal resources on valuable activities such as product development, sales, marketing, customer service, and forecasting instead of diverting assets and attention toward nding temporary warehouse space and hiring enough labor to handle the post- peak returns period. WITH A LITTLE HELP FROM YOUR FRIENDS As the retail landscape continues to evolve, having a reliable logistics partner for reverse logistics is no longer a luxury but a necessity. By outsourcing returns management to a trusted 3PL, retailers can improve operational ef ciency, enhance the customer experience, reduce costs, and focus on what they do best—growing their business.
disposed of as quickly as possible to ensure a minimal impact on storage costs. 2. More Flexible Sta ng For decades, hiring temporary labor has been the go-to method for adjusting to increased peak season volumes. However, that strategy has come into question in recent years as the logistics, supply chain, manufacturing, and transportation sectors all struggle with an ongoing labor shortage. Although 3PLs aren’t necessarily immune to this problem, they tend to have closer relationships with staf ng agencies, allowing them to scale up labor more easily. Additionally, 3PLs operate multiple facilities and can shift staff around to accommodate demand as needed. 3. Expertise in Returns Management Successfully managing a surge in reverse logistics activities takes knowledge and various resources that a retailer may not have on their own. As experts in all things logistics, the 3PL will have everything necessary to handle high-volume returns, including: • Dedicated returns processing space • Warehouse team members assigned speci cally to returns
—By Robert Kriewaldt
Senior Vice President Phoenix Logistics Robert@Phoenix3PL.com phoenix3pl.com 920-915-9746
January 2025 • Inbound Logistics 53
Powered by FlippingBook