Reverse logistics: The cornerstone of the circular economy

By: Cathy Roberson

October 17, 2025

From returns management that drives new revenue streams to clever partnerships to reuse resources

Reverse logistics is far more than managing product returns; it's the process that ensures goods, materials and resources continue to generate value long after their initial sale. Reverse logistics serves as the cornerstone of the circular economy. 

What is reverse logistics? 

Reverse logistics encompasses all activities that occur after a product's initial sale or distribution. It includes managing returns, recovering unsold or excess inventory, inspecting and refurbishing items, recycling materials, donating unsellable goods and ensuring responsible disposal. 

Unlike forward logistics, which focuses on getting products to customers, reverse logistics deals with bringing products back. This reverse flow is far more complex because each returned or recovered product can take a different path. Some can be resold as new, others require refurbishment, some are recycled, and others are donated or responsibly disposed of. 

Each of these outcomes requires a combination of inspection, disposition, transportation, processing and resale — often coordinated among multiple partners, from recyclers and liquidators to nonprofit organizations and secondary marketplaces.