3 Ways Reverse Logistics Can Pump Up Your Profits


Sustainability and the green movement have done much to raise profits for small businesses. Once thought a fad, recycling has itself become big business. But some industry products are often thought unrecyclable and better suited for the landfill.

The consumer electronics industry was once one of the biggest offenders. Yet the public is now showing an interest in recycling old computers, TVs and smartphones. Still, they only know they should return their used smartphones; they know nothing of the small businesses profiting from the use of reverse logistics companies.

Are you a small business owner? Want to learn how recommerce and reverse logistics can help your profits grow? Read on.

A Multi-Pronged Approach

  1. Sustainability

The raw materials used in manufacturing smartphones can be recycled to make new products in such diverse industries as the jewelry, automotive and electronics industries. When deposited in a landfill, smartphones past their usefulness leach into the groundwater, poisoning plant and animal life. Their heavy metals and chemicals don’t do humans much good, either. Recycling smartphones has become the best way to maintain a small business’s sustainability goals and compliance.

  1. Small Business Branding

Building your brand is vital. Whether your small business deals in retail, repair or resale of smartphones, effective branding can make or break your bottom line. A smooth flow in the supply chain builds profits from the reverse portion of the smartphone chain, allowing more energy to be diverted into building your brand. Reverse logistics companies have gained quite a bit of recognition recently, so much so that analysis of its operations has itself become a business. Utilizing that ebb and flow will help your profits grow.

  1. Return on Investment

There’s just as much money to be made in reverse logistics as there is in the forward end of sales. In 2007 a reported $56 trillion was made by reverse logistics companies. Since smartphone sales generally increase significantly every two years when users upgrade, the refurbishment and resale of used smartphones has become a viable business.

Reverse Logistics 24/7

Small business owners deal with returns every day. They examine the return to ascertain if it can be repaired and resold, or if it must be trashed. It’s no different with smartphones. Returns and the subsequent examinations lead to the next step of repair.

That’s where reverse logistics companies enter the picture. These companies provide the small business owner with tracking and analysis data. The business owner will then know at what stage the return is in and what it’s currently valued. Reverse logistics companies then effect the repair or replacement of the item or its parts, alerting the business owner of the state of the return. The resale of the returned smartphone helps to not only pay for the transportation, storage and repair or recycling of the phone and its parts, but it also channels profits back into the business.

The Benefits Are Manifold

Consumers are becoming more tech savvy. They are also becoming more green-conscious. For a small business owner to build a brand successfully, taking into consideration customers’ views and desires are of primary importance. Giving them the benefits of reverse logistics in the smooth flow of the sales chain makes both economic and social sense. Contact us for more information on how to use reverse logistics to grow your brand.

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Nima Jacob Nojoumi

Teen Entrepreneur. Former adviser @GoDaddy. Founder at House of Genius AZ @HofGAZ. Co-Founder & CEO @GetSourcely. Teamwork makes the dream work.