Reverse Logistics Case Study

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REVERSE LOGISTICS?

21st century is seen as the era of dot coms or one can say the era of startups with e-commerce ventures. besides all pure plays, many brick and mortar businesses are also joining the same league by entering into e-commerce. Online shopping has become a lifestyle now days but it has its ways back to 20th century. In India IRCTC in 2002 for the first time used e-commerce for booking tickets online and than it was followed by airlines for online booking,and then in 2007 came the discounted model of online retailing i.e..flipkart. Today in India travel and e-ticketing websites alone share 68%of total e-commerce business.After online travel segment, online retailing is the second
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the complications involved in reverse logistics such as refund, replacement, exchange increases the cost of supply chain. As per the sources reverse logistics accounts for 15 to 20 % of forward logistics and out of it 5 % are due to logistic failure and rest initiated at the end of customer. reverse logistics accelerate the delivery cost by 50% due to two way courier charges as 3PLs charge INR 45 to 50 higher than the forward delivery for reverse delivery. reverse logistics and mode of payment- relation

another important fact to know is that how ever COD has helped e-tailers in accelerating their sales but chances of returns are higher in such categories which have COD option. steps taken by e-tailers e-commerce retailers are taking various steps to reduce their reverse logistics . comapnies are trying to cut down returns in apparels categories by providing size recommendation features and taking information about the body type of customer before chowing them products .eg. voonik fashion. by sending reconfirmation mail and messages for delivery and giving options of cancellation before

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