Work out reverse logistics cost instantly with clear inputs, formula shown and shareable results.
Reverse logistics is only worth doing where recovery value exceeds collection and processing cost. For low-value items the net figure is negative, which is why many retailers instruct customers to keep or dispose of returns below a value threshold.
Cost per return
Cost = Collection cost + Inspection and sorting cost
Net value per return
Net = Recovery value - Cost per return
When the recovery value is below the collection and processing cost. Refunding without return is cheaper and improves the customer experience.
Fast turnaround back to resale, good grading discipline, and secondary channels for graded stock rather than defaulting to scrap.