Reverse logistics from abroad is the process of returning goods from a customer on another market back to the seller. For cross-border sales, it is substantially more expensive than domestic returns, because it involves international transport and, for sales outside the Union, also customs clearance and the refund of any customs duty. Customers, meanwhile, expect an easy return, and its absence reduces their willingness to buy. A common solution is a local return address secured through a partner or logistics company, from which shipments are sent in bulk, or alternatively a decision not to have low-value goods returned at all and simply to refund the customer. The cost of returns needs to be built into pricing for the given market, otherwise the margin is wiped out at the first wave of returns, typically with clothing and footwear.
See also: Returns and their cost, Logistics and customs, Pricing for foreign markets.
