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CHAPTER – 1: INTRODUCTION
In present word, online shopping has become extremely popular among the people around the
globe. E-commerce is also generally favoured since customers can compare prices across
different stores and then hunt for offers that are more attractive. The majority of the time,
ecommerce websites purchase these things in bulk from the brands, and in order to get rid of
their inventory, they provide discounts on their products. In the current years, different
surveys have already proved that the online shopping is surpassing through stores. It is more
essential than ever to ensure the website is doesn’t run perfectly and correctly but fulfills all
expectations as well as has all features that consumers expect now from the online shopping.
One important service that the consumer looks for while doing online shopping is the return
process and policy.
Returns can mostly be overlooked because peoples always feel that it is the afterthought to a
process of eCommerce, however, in a reality, it is just the part of the purchasing journey of
all consumers as anything else as well as should not be thought of as an afterthought. The
return process basically begins the customer’s experience beginning, not only after their
product has been delivered or arrived. According to the findings of the Global Consumer
Survey conducted by Statista, a significant number of Europeans make it a practise to send
back the things they purchase online (Statista, 2022). This is notably true in Switzerland and
Germany, in which more over half of respondents had returned at least one product bought
online in the 12 months before to the poll (which was performed in 2021/2022). This was
found to be the case in Germany and Switzerland (Statista, 2022).
Figure 1.1: Online Product Return in Different Countries
(Source: Statista 2022)
This practise appears to be even more common among Internet users in India and China, with
73 per cent and 66 per cent of them, respectively, saying that they have returned a product
that they purchased online in the previous year. This research basically includes detailed
information about the processing return practices with managing the reverse logistics in the
United Kingdom. The literature review has included different information and solutions for
all the issues that processing returns have faced in this research. Along with this, the
methodology section will include a description of the different kinds and sources of the data
we used in the study, as well as the research's strategy, design, and philosophy. These
elements will help determine what kind of data research will be used to address all the
problems with return processing procedures in the UK e-commerce sector.
This results in a significant number of companies having to pay out of their own funds to
process millions of customer returns, resulting in an annual cost of over £60 billion for UK
retailers. It is also a problem in the United States, where around 3.5 billion products are
returned annually, which represents approximately $120 to $150 billion of worth during the
festive season alone (Centre for Retail Research, 2022).
Currently, most of the customers with the practices of processing return some products within
the services. Most written products in the return process usually begin with the cost of
warehouse space and the inventory carrying. Returns management is the process that is
followed in retail and online commerce that starts with a customer requesting a return and
ends with the goods being collected, processed, and replenished. This process begins when a
customer makes a return request. Therefore, the management practices of processing returns
are the important services that several consumers look for in return policy and processing.
The detailed procedure and policy are taken as a general rule within the process in practices
and returns which have exchanges and returns through customers. As the firms properly
respond to the stricter regulations as well as increase the Expectations of consumers, the
program of Reverse logistics to support the management strategies of end-of-life product
have become so much more prevalent. Despite the theoretical literature's growing body on
the particular topic, several firms highly struggle to implement an effective and efficient
system of reverse Logistics.
1.2 Research Statement
This research contains different chapters related to the return practices in the UK and in this
the management of reverse logistics.
Chapter 1 is about introduction of the entire research which discusses about basic information
related to the topic of research. Along with this, a background of the research will describe
about the beginning and impact of reverse logistics and return practices in the UK.
Chapter 2 contains a literature review of the research which includes the overall research
related to the topic. This shows different segments and different forms which impact
positively and negatively the return practice and reverse logistics in the United Kingdom.
Along with this, it includes all the steps and forms that the topic of research includes.
Chapter 3 includes the methodologies that were applied to this investigation are broken down
in great detail. This research basically includes secondary data because the entire information
is collected from different persons and research. The methodology part mainly shows about
the motive of the entire report as well as it shows different strategies, approaches,
philosophies of the report, and more.
Chapter 4 includes the results and discussions and research gap about the overall research as
well as it will give a proper opinion of all the persons through this research.
Chapter 5 includes the recommendation part which gives information about the present, past,
and future of the topic discussed in the research.
At last, a conclusion is presented in Chapter 6, which details the takeaways both in terms of
what was learnt and what was perceived from reading this report.
Improvements in the theory of demand and supply are binding within the transportation price
within a constant supply. The importance of matching supply and demand is determining
perfect relations in the goods and services available in a market. The cost of the goods,
advertisement, and income are manufacturers which completely depends on the demand for
different goods. Some of the effects of positive access are better results with additional
employment and Investments. Checked, locked, and received can provide particular handling
returns along with all the given items. What properly has been searched from previous
research is covered in the chapter. Along with this in this over all research, the last research
from the articles, journals, and reports has been properly analyzed. A relevant and collected
journals have been properly analyzed from the last work along with a theme of the research
background. This chapter and research are being analyzed in such a way as to enable it to
meet some demands of the definite research. In addition, this chapter also has provided the
perspective of theory on the topic of this research. Therefore, it may be ensured here that all
the information and details are selected from authentic and reliable sources.
2.3 The Effective Online Returns Practices and Management Importance
The return policies or return management is perfectly defined as a process of retail logistics
operation that is highly catalyzed by the consumers to decide that all of they no longer need
or want a product as well as want to give it back. Therefore, this can be either in exchange of
the product for the refund of the full amount, in the emerging trend there is 'no return returns',
a similar product, and the same product's variation the online platform rights of return -
situations in which this is financially unconstitutional for the consumer to return an item to a
retailer as well as the retailer provides their consumer complete refund easily allowing them
to do because they please along with their products or items, which is completely damaged,
no longer required or needed, and unsuitable.
Once a customer decides that all of them does not require or want any product, or does not
have an order simply that all of them ordered, a parcel is returned with the consumer
contacting the team of customer service of the retailer, all begins by login into an online store
to properly complete a request of Return. Thereafter, the consumer will select a convenient
location for the local Returns. In this situation, the service of partial return can be sent back
and booked to the retailer as well as to the outsourced center of fulfillment. Once the mail
items, packets, or parcels are returned to the warehouse, the quality check of the product is
carried out by the pack and pick items. Depending on the condition of the returned products
or items, they will either be refurbished, restocked, or in a situation of the recycled "reverse
logistics".
The research also found that most, so many customers around 66 percent returned so many
items because all of them didn't properly fit. In addition, around 39 percent of the 1,000
customers interviewed were returned because all the items or products were "not as properly
described". Along with this, 36% of all the respondents who purchased online had returned
all the products becoming the products or items look so much different in reality.
There is another reason for returning all products is a "serial returner", which customers
discover retailers are either ordering a lot or returning a lot, as well as in some cases wearing
out before returning the products. Back in the year 2019 some of the main retailers decided to
properly adjust its policy of return to crack down on the serial returners. At a Whistl all the
individuals wanted to properly know that what the people thought about all the changes
which are proposed by companies and whether all of them will affect the sentiments towards
all retailers. Along with this, 76% of the survey respondents supported highly this overall
policy. But, in all only 8% of the customers is not agreed with all some of the changes which
enhance to around 60% as they pertained specifically to all the shoppers.
The last factor that determines the return rates of online purchasing is, fraud, most
surprisingly: research by the National Retail Federation basically found that of around 0.4
trillion dollars in a Merchandise as a returned to the United States retailers in the year 2020,
around 5.9% were highly fraudulent.
As this concluded, why not make some returns as soon as possible, it can impact the
experience of all the online users, the lifetime value of the customer, and conversion rates.
Along with this, reverse logistics and return practices of Management are different from each
other. The return practices basically include the products collected from all customers,
delivery to full film and center and to all retailers as well as restocking the product or items.
On the other side, Reverse logistics is a huge term which can include different services like
product disposal, and recycling programs, as well as in the example of all wholesalers who
can sell on the term of credit, and the recovery of assets. Deeply embedded in the supply
chain of retailers, the reverse logistics highly monitor different variables like the returned
item's proportion that may be manufactured again.
As with the returns of online products, the reverse Logistics mainly requires the accurate
management of inventory to manage all the items which are returned, the level of stock, as
well as status of all the products which are returned. While the return of online products
typically prioritizes the experience of fractional customers, fast stock profit, and
replenishment, the reverse logistics in the United Kingdom can be very easily optimized or
adopted to reduce the carbon footprint of the business.
(SOURCE: https://www.pinterest.com/circulareconomyasia/reverse-logistics/)
The study by the researcher, the post-purchase experience platform of customers, found that
96% of all the online Shoppers will return the items to a business that gives a frictionless, the
return policy which is free from hassle, as well as 62% will repurchase from the retailers who
give a free return.
Some actionable tips for helping the business to minimize returns as well as make at a very
competitive advantage:
To make sure that the business is achieving the best practices of online returns it will be
prudent and perfect for the online merchants to:
Profile your consumer to properly identify all serial returns as well as customize the
policy of return with the limits of return.
Make a clear and perfect multi-channel policy of returns that keeps the customers coming
back for more products but prevents some sections from abusing and bad things the
system.
Make sure the team of a contact center is properly changed to make returns according to
the request of a customer through live chat, telephone, or email. The policy of Return
should be clear, ensuring that employees of call centers never ever have to create and
make some decisions, just apply the right protocols.
Implement the strategy of multi-career delivery involving the partners of career who have
base competency in tracking and delivery of return.
Recommend more accurate sizing of the Marketplace and website visitors to reduce
different incidences of returns related to sizing, also considered introducing the
technology of AI-powered-body-measurements to capture the body measurement of the
customer as well as translate them in a recommendation of highly accurate size while
reducing the possibility of a wrong-size return.
The process of a closed loop supply chain also involves recycling or using the waste
materials or returning products to minimize entire waste and save some raw materials. The
relationship between closed-loop supplied Chain and processing capabilities is proportional.
Along with this if there is a maintained and good balance processing capability while the
process of production continues, that product will not be a return subject. The continued
return of the product may be in the gate that the capabilities of the process are bad and it
shows the overuse of the waste materials.
(SOURCE: https://www.sciencedirect.com/science/article/pii/S0377221714005633)
The reverse close loop supply chain is a very tough entity, and to properly overcome this
issue, companies must process the capabilities of recovery by rework, refurbishing and
repairing, and remanufacturing all the sites. This also suggests:
Companies that highly integrate the operations and strategies functions are so much more
effective in handling the returns of the products. The return’s effectiveness was properly
measured in the form of ability of a firm to handle all returns of their quality, type, timing,
and volume (regardless). The external integration capabilities of the company also impact the
product return volume because the effective system of reverse logistics is very important to
motivate to return of product from customers.
The capabilities of manufacturing are required to handle the huge variety of the return of
products in the closed-loop supply chain. For instance, the process of production must be able
to properly respond to the product return volume and uncertain timing, as well as be able to
dismantle the products, fulfill demand, recover materials, and coordinate with the
requirement of new materials.
The researcher identified thirteen different recovery capabilities for the product recovery, also
categorizing them as a perfect routine, revenue, or technical improvement. The capability of
routine recovery refers to the ability of form to influence all of its institutional structure by
selling as well as its impact on the future and present legislation.
Financial Flows, include the buy-back clauses, end-of-use costs, and other disposal costs.
While also pricing for an original product or item is basically straightforward (relatively),
designing that contract which specifies different situations under which a product or item will
be taken back after using it is more tough and challenging, as a product quality is unknown as
well as more difficult to see and observe.
Material flows are highly impacted by the place, time, and quantity of the returns, and also
their potential of reuse products, which mostly can only be properly assessed after the
disassembly of the product.
Information flows, it is crucial to minimize the uncertainty in reusability and timing of the
product which is return, and also the time which the product completely spends in a market,
and more.
2.7 Insights on the Pricing Decision Coordination through the Reverse
Channels
This research shows that a reverse channel in the CLSC can be utilized as the new tool of
coordination by manufacturers to get a coordinator performance of the channel in the
decentralized setting.
The literature on operation has often focused on the control of production, the network
design, and the inventory management with a reverse and forward flows. In this pricing is not
considered typically. Therefore, the segmentation of the market with a remanufactured and
new products, but mainly assumes that the technology is determined exogenously. The
research contribution of the researcher named Debo is to properly address the joint
technology selection as well as the segmentation of market in the remanufacturing context,
and also to develop the result of insightful structure.
Even every single customer is highly characterized with the parameter of, Ɵ ϵ [0,1], which is
mainly its willingness to but all new products. Therefore, it can be seen that willingness-to-
pay for all new products or items is highly distributed on [0,1], on the basis of F function,
where the F(Ɵ) shows the consumer type’s volume in [0, Ɵ] as well as it is the continuous
and strictly increasing function with F(0) = 0 and F (1) = 1. The consumer type’s willingness-
to-pay Ɵ for all the remanufactured products is (1 – δ) Ɵ, with δ remanufactured product’s
perceived depreciation. pr and pn denotes the remanufactured and new products or items,
respectively. A net utilization that the customer of a type Ɵ takes from purchasing a very new
product, as well as the remanufactured product, also, no product or item are properly denoted
with Ɵ – pn, (1 – δ) Ɵ – pr, as well as 0, respectively. Therefore, the goal of manufacturer is to
increase the average profit in the infinite time horizon through setting the level of
remanufacturing, {pt = (pn,t,pr,t) t ≥ 1}. The remanufacturability’s constant level in all the
periods and time is mainly assumed since this is the selection of initial technology which
determines the value for a some time period.
Along with this, it is so much easy to properly show and determine that in any time the value
of t, customers with the willingness to pay for all the new products or items between
as well as 1 will consider to purchase a new item or product, while all customers
Therefore, the period of result t demands the new and remanufactured product’s volume are
This summarizes the main issues and insights that may be properly obtained from the overall
model.
(SOURCE: https://resources.pollfish.com/tag/quantitative-research/)
The interpretivism research philosophy basically depends on different theories which shows
that the performance of the researcher in the research has a particular role to observe a social
world. It includes different elements of the overall study. This uses the method of quantitative
research which focuses on the motivation, beliefs, and reasoning of the individuals over the
qualitative data.
In the literature review part, this study shows different theories and principles, which
completely show both the negative and positive sides of reverse logistics in the return
practices in the UK. It supports understanding whether reverse logistics is profitable for the
company or not.
We follow the descriptive Research Design for this paper to properly and systematically
shows the overall research on the topic. As this research paper follows the interpretationist
research philosophy as well as considers the topics evaluations matter covers entire results of
the research. The closed-loop supply chain is the main base of reverse logistics which shows
the returned product process. The product came back to the original manufacturer, who will
distribute and sell it again to recover the overall value and charges.
Image : Descriptive Research Method
(SOURCE: https://www.questionpro.com/blog/descriptive-research/)
Different kinds of themes a topic will be created that are correct for the objective of the
research. Subject-wise data has been collected and analyzed using different principles and
theories.
Theory of the closed loop supply chain management is very supported to explain about the
returned products to the original manufacturer. The connection of the closed-loop supply
chain with the reverse logistics will show the model of pricing products after return process.
In this research, at first, we get to know about the basic information of Return practices in the
UK and then we learn about the role of the reverse Logistic in Return practices.
As this overall research uses the secondary qualitative data to analyze in collect entire data,
the purpose of this paper is to create a relevant topic that will highly support to identification
and meeting of the objectives of the research. Information also has been collected from
secondary sources data as well as analyzed with a great relevance.
In this research all the information, figures, and data required to be quoted (cited) properly
and systematically. To utilize the collected data from someone else, this research will utilize
an appropriate context or reference. The original researcher's name will be given in the
reference list. The reference list will show that from where we collect the overall data for this
research.
On the other side, the scaling operations in the research have been carried out through the
companies to properly meet the increasing demand, this is basically another problem which
can be found in the process of return in the United Kingdom (in reverse logistics).
CHAPTER – 4: RESULTS AND DISCUSSION
References
Centre for Retail Research, 2022. Online Trends: UK, Europe & N. America 2021.........The
Pandemic Curse. Available at: https://www.retailresearch.org/online-retail.html (Accessed on
20th Oct 2022)
Saleh, K., 2016. E-commerce Product Return Rate – Statistics and Trends [Infographic].
Available at: https://www.invespcro.com/blog/ecommerce-product-return-rate-statistics/
(Accessed on 20th Oct 2022)
Statista, 2022. How Common Are Online Returns?. Available at:
https://www.statista.com/chart/27584/how-common-are-online-returns-gcs/ (Accessed On:
20th Oct 2022)
Zhang, D., Frei, R., Senyo, P.K., Bayer, S., Gerding, E., Wills, G. and Beck, A., 2022.
Understanding fraudulent returns and mitigation strategies in multichannel retailing. Journal
of Retailing and Consumer Services, 70, p.103145.