Reverse logistics and the circular economy

Each year, some $890 billion of purchased retail goods are returned. That’s a number that increases yearly and has jumped 297% since Covid, according to an EDGE panel entitled “Shaping the Future - Reverse Logistics and the Circular Economy.” It was moderated by Tony Sciarrotta of RL Solutions Group and included panelists Matthew Leavell of BuyLow Warehouse, Claudia Freed of EALgreen, and Harrison Lloyd of Hilco Capital One Solutions.

The panel discussed how in the past most returns found their way into landfills. Today, there is an effort to reuse or resell as many returns as possible. It’s a huge undertaking, as 16.9% of all retail purchases are returned. It’s even higher with online purchases – as much as 30% depending on the products.

The secondary market is helping, as it is increasing its acquisition and resell or reuse of these returned goods. The secondary market grew 11% alone last year and now is valued at $800 billion.

“The challenge is no longer recognizing the opportunity. The challenge is finding the talent to capture it,” said Sciarrotta.

This story was originally published by Supply Chain Quarterly. Read the full story at Supply Chain Quarterly →