What is the term for the process of returning goods from a customer to the seller?

The process of returning goods from a customer to the seller is called reverse logistics.

It covers the movement and management of products after they have reached the customer or another point near the end of the supply chain. Returned goods may be inspected, repaired, refurbished, restocked, resold, recycled, or disposed of, depending on their condition and the company’s policies.

Reverse logistics became especially important with the growth of e-commerce, where customers can return unwanted, damaged, incorrectly supplied, or faulty products through organized returns programs. It can also involve product recalls, reusable packaging, warranty repairs, and the recovery of components or materials for reuse.

The key distinction is direction. Forward logistics moves products toward customers, while reverse logistics moves products back toward a retailer, seller, manufacturer, or recovery partner. “Returns management” is a closely related term, but it usually describes the returns process specifically; reverse logistics is the broader supply-chain activity that may continue after the return is received.