Product Returns Management Services in the US Industry Market Research Report from IBISWorld Has Been Updated

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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. For these reasons, industry research firm IBISWorld has updated a report on the Product Returns Management Services industry in its growing industry report collection.

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The industry benefits as rising disposable income bolsters consumer spending.

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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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