The industry benefits as rising disposable income bolsters consumer spending.
New York, NY (PRWEB) January 25, 2015
The Product Returns Management Services industry manages reverse logistics or the physical movement of surplus or unwanted goods, materials and equipment from consumers back to manufacturers as well as other locations for resale, reuse or disposal. “Industry operators provide customer support and supply-chain services, including warehousing, sorting, triage, repairs and after sales support,” according to IBISWorld Industry Analyst Stephen Morea. In the five years to 2015, the industry benefited from an improving US economy, as greater job security and rising disposable income bolstered consumer spending and retail sales.
With more products sold, the total number of product returns in the United States is also expected to increase in the five year period ending at the end of 2015. Demand from the e-commerce sector has driven much of this growth, as product returns management companies are contracted to reduce online merchants' assessment, repackaging, delivery, receiving and reselling costs. “Additionally, the industry benefited from a thriving consumer electronics sector, as industry operators assist manufacturers in salvaging returned parts and reselling them in the secondary markets,” says Morea. Due to these positive factors, industry revenue is expected to increase at an average annual rate of 3.7% to $6.1 billion over the same period, which includes 4.9% projected growth in 2015 alone. Furthermore, industry mergers and acquisitions, such as the December 2014 purchase of Genco by FedEx, are expected to be more common during 2015, as shipping companies will partner with industry operators to help eliminate slow or lost shipments, reduce discrepancies, manage returns and improve customer satisfaction.
In five years to 2020, the Product Returns Management Services industry will continue to expand. Consumers, with more money at their disposal, will increase spending, supporting both manufacturing output and retail sales. Consequently, product returns will rise in tandem with this higher demand for retail driving industry revenue. Consumer electronics will also provide a consistent source of downstream demand, as reverse logistics are necessary to recover, repair and resell returned parts in secondary markets. Accordingly, industry revenue is expected to increase at an annualized 3.3% to $7.2 billion in the five years to 2020.
For more information, visit IBISWorld’s Product Returns Management Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes firms that provide a variety of reverse logistics services, including return center operations, return to vendor management, product recall management and product recycling.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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