The Challenges of Reverse Logistics and the Cost of Returns

In this episode of "Not Another eComm Podcast," host Ian Kaneshiro welcomes Kevin Lawton, a seasoned professional in the field of distribution and operations management within the warehouse and logistics sector. Kevin Lawton is the founder of The New Warehouse and has been working in the distribution and logistics industry since 2012 when he began his career as a temp employee in the Inventory department at Simon & Schuster.Kevin shares the challenges and intricacies of the industry, including the rise of e-commerce, the impact of companies like Amazon, and the growing problem of returns. With insights into the logistics behind getting a package to your doorstep, this episode sheds light on the unsung heroes of the supply chain.Timestamp0:00:06 | Introduction to the importance of logistics in online shopping0:00:33 | Kevin Lawton's background and experience in the warehouse industry0:01:59 | The inspiration behind starting The New Warehouse podcast0:03:52 | The expansion of The New Warehouse into a media company and opening their own fulfillment center0:09:15 | Balancing logistics cost and customer service levels in supply chain management0:11:14 | The impact of Amazon on consumer expectations for fast delivery0:11:26 | The challenge for brands to compete with Amazon's logistics capabilities0:11:56 | Optimizing logistics costs and meeting customer expectations0:12:08 | Amazon's logistics network and the cost of convenience0:13:21 | Amazon's brand perception and affordability0:15:07 | The importance of Amazon as a marketing channel0:16:12 | The desire for direct website traffic for better margins0:19:23 | The potential shift from free shipping to customer-paid shipping0:22:07 | The impact of returns on costs and potential changes in return policies0:23:09 | The expensive process of reverse logistics and the last mile0:24:28 | Amazon's solutions for the first mile of reverse logistics0:25:58 | Kevin explains the inspection process for returned products.0:29:13 | Ian reflects on the growing problem of returns and its impact on logistics and the environment.0:31:24 | Kevin mentions the recommerce programs of brands like Patagonia0:32:06 | The sustainability efforts of some brands in handling returns0:32:54 | The complexity of logistics and the importance of understanding the supply chain process0:34:23 | Conclusion and Final DiscussionsConnect with our guests: https://www.thenewwarehouse.com/Connect with our host:Ian on LinkedIn: https://www.linkedin.com/in/iankaneshiro/ Ian on Instagram: https://www.instagram.com/iankaneshiro_Stay connected with Seller Snap:Website: https://www.sellersnap.io/LinkedIn - https://www.linkedin.com/company/seller-snap-inc./ Instagram - https://www.instagram.com/sellersnap.io/ Facebook- https://www.facebook.com/sellersnap.io/ Full video episodes are always uploaded on YouTube.Not Another eComm Podcast By Seller Snap- helping sellers optimize their Amazon store through smart algorithmic repricing.Seller Snap offers all Amazon sellers a 15-day free trial - find out if we are the right repricer for you and your Amazon store. Visit https://bit.ly/3UyoByZ