At Reveni, we believe reverse logistics should not be seen as an unavoidable cost for ecommerce but as a strategic opportunity to maximize profitability and build customer loyalty. Our approach goes beyond transforming the return and exchange experience; we focus on improving the unit profitability of brands and optimizing their operations. This turns a traditionally reactive area, often overlooked by brands, into a key driver for growth.
Reverse logistics: a challenge turned into a competitive advantage
For many brands, reverse logistics is a significant pain point. Returns involve operational costs, potential revenue losses (due to held stock and slow inventory turnover), and logistical challenges. However, at Reveni, we understand that every return is an opportunity to improve customer satisfaction, accelerate repurchases, and generate higher revenue per order.
Our mission is to turn returns into a competitive advantage by providing solutions that not only address operational challenges but also drive profitability and strengthen brand perception. How do we achieve this? Through instant refunds and exchanges that optimize every step of the process.
How to transform reverse logistics to maximize unit profitability
Reverse logistics doesn't have to be a resource drain. With our technology and strategic approach, we help brands recover more value from every operation and reduce unnecessary costs.
1. Maximizing revenue through accelerated repurchases
Instant refunds don’t just solve logistical problems; they also encourage customers to reinvest in your brand. Our data shows that ecommerce businesses implementing Reveni experience a 35% increase in repurchase rates, with purchases happening much faster.
37% of customers who receive an instant refund repurchase within the first 24 hours, and nearly half do so within 3 days.
2. Increasing Average Order Value (AOV)
The positive impact doesn’t stop at increased repurchases. Customers also tend to spend more. On average, brands that adopt instant refunds see a 19.5% increase in their AOV (Average Order Value).
Real impact: For a brand with an initial AOV of £98, this translates to an increase to £122, generating £456,000 in additional net revenue from repurchases annually.
Efficient operations: beyond returns
An efficient reverse logistics process benefits not only customers but also internal teams. At Reveni, we understand that the operations behind every return are key to profitability. That’s why our solutions are designed to optimize resources in critical areas:
1. Reduced pressure on Customer Service Teams
35% of customer service inquiries are related to refund status ("Where is my refund?", WISMR). This volume frustrates customers and consumes valuable team time. With Reveni’s instant refunds:
- We eliminate the need for recurring refund inquiries.
- Negative feedback related to delays is significantly reduced.
- Teams can focus on strategic activities, such as enhancing customer experiences.
Avoiding negative reviews can preserve up to 30 potential new customers per avoided complaint.
2. Simplification for Finance Teams
Issuing instant refunds makes it easier to attribute returns to the correct items, reducing errors and ensuring greater operational clarity. Additionally, by externalizing the financial risk of these transactions through Reveni, brands can focus on what truly matters: planning and optimizing their business model.
Instant exchanges: the perfect ally to reduce return rates
Size issues account for 75% of returns in fashion ecommerce, according to Shopify. While eliminating returns entirely is impossible, turning them into instant exchanges can significantly mitigate revenue loss.
Real scenario: A brand with annual revenue of £15 million could reduce its return rate from 30% to 18% by implementing instant exchanges, saving up to £1.8 million annually.
Additionally, exchanges foster customer loyalty, as clients perceive that the brand prioritizes their experience over operational hurdles.