Rising supply chain complexity and consumer awareness of a growing environmental crisis are shaping the circular economy by embracing reverse logistics best practices, in which products, components and materials are kept in use for as long as possible.
Circularity is a multifaceted approach that touches product design, material sourcing and end-of-life management.
For example:
Companies are increasingly considering how goods can be made easier to repair, reuse or recycle. A product built with modular components, for example, is easier to disassemble and recondition.
By utilizing recovered plastics, metals, textiles and electronics, manufacturers can reduce their dependence on virgin raw materials.
Whether through take-back programs, refurbishment or resale, businesses and consumers play a role in ensuring that used products are given a second — or even third life.
"Investing in a circular economy isn't just better for the planet," explains Tony Sciarrotta, NRF senior director of reverse logistics and circularity. "It's better for customers and the bottom line. Just as car companies and electronics manufacturers have developed methods to refurbish, service and resell used items, fashion retailers and manufacturers are also exploring ways to create secondary markets for their clothing and other consumer goods."
Reverse logistics makes circularity a reality. It is the execution mechanism that enables businesses to take back goods at scale, sort them efficiently and ensure they are put to the best use. It is a discipline that requires coordination across logistics networks, technology systems, refurbishment providers, resellers, recyclers and even nonprofits.
"Retailers are carefully examining every step in their reverse logistics processes to find creative ways to lower reverse logistics costs further, create new revenue sources, deliver additional consumer value, attract new customers and create environmental benefits by rethinking their reverse logistics processes," Sciarrotta says.
NRF Rev is focused on helping brands and manufacturers reduce costs and increase profits through reimagined returns, refurbishing, reselling and reverse logistics processes. Join us in New York, Jan. 11-12, 2026. Learn more.
When most people think about reverse logistics, they picture retail returns. Indeed, retail is a highly visible part of the reverse logistics ecosystem. The rise in ecommerce has driven return rates far higher than those seen in traditional stores. Online return rates hover around 20% compared to 8 – 10% for in-store purchases. As such, retailers have had to adapt quickly, building reverse logistics infrastructure to manage the flood of returns while still meeting consumer expectations for convenience.
But retail is only one facet of reverse logistics. The industry extends far beyond the consumer sector. Reverse logistics also includes decommissioning corporate assets, such as computers, servers and furniture. It impacts industries such as automotive, electronics, healthcare and manufacturing, where products and parts require repair, refurbishment or recycling. "In this sense, reverse logistics is not just about shoppers sending back unwanted items; it is about creating processes to recover value from goods across every sector of the economy," according to Scot Case, vice president of corporate social responsibility and sustainability and executive director of the NRF Center for Retail Sustainability.
Circularity is gaining momentum among all types of businesses to reduce costs, enhance customer engagement and experience and comply with extended producer responsibility laws (EPR) that hold manufacturers accountable for the lifecycle of their products, ensuring functional materials are kept out of landfills.
Together, these forces have elevated circularity from an environmental concept to a mainstream business strategy.
The scale of the reverse logistics market is huge and diverse. It is a multi-trillion-dollar global sector that comprises of many specialized players, each focusing on distinct aspects of reverse logistics processes.
Together, they form a vast ecosystem enabling circularity to function:
Software companies play a critical role in orchestrating reverse flows. Platforms like Blue Yonder, ReverseLogix and Vendidit allow businesses to track inventory in real-time, decide on disposition pathways and manage the journey of each product.
Logistics companies such as DHL, DSV and XPO are responsible for collecting, transporting and sorting goods.
Liquidators such as Liquidation.com, B-Stock and Liquidity Services help businesses offload unsold or returned products in bulk, channeling them into secondary markets where they can find new buyers.
Resale platforms are thriving in the circular economy. Specialized platforms for resale of items exist for nearly every category: Gazelle for cell phones, The RealReal and Vestiaire Collective for fashion, AptDeco for furniture, Play It Again Sports for sporting goods and Home Depot's Reconditioned line for power tools. Broader marketplaces, such as eBay, Amazon Renewed, Walmart Restored and Target Pre-Owned, handle a wide array of products.
Repair, refurbishment and repackaging services are another essential link in reverse logistics processes. Companies like Tersus, Sims and ReturnPRO provide multi-category refurbishment, while others, such as Darn It! Inc. and Debrand specialize in fashion and textiles. These services ensure products are restored to high quality before entering resale channels.
Reverse vending technology companies such as TOMRA, EcoATM, RVM Systems, and Atlas RVM enable consumers to recycle bottles, cans, electronics and more through automated kiosks, making participation in circularity convenient and rewarding.
Off-price retailers, including TJ Maxx, Ross Stores, Burlington, Nordstrom Rack, and Ollie's Bargain Outlet, sell excess inventory from other retailers or manufacturers, preventing usable products from going to waste.
Nonprofits such as Goodwill, PlanetAid, GiveNKind, and the Salvation Army also play a crucial role, collecting donated goods, reselling what they can, recycling when possible and disposing of what cannot be reused in a responsible manner.
Some organizations cover multiple functions. Tersus focuses on textiles, Sims specializes in electronics, ReturnPRO handles a wide range of products and Trove partners with brands to power resale across categories.
Reverse logistics transforms circularity from an abstract idea into a functioning system. Without reverse logistics, products would continue to flow one way — from factory to consumer to landfill. With reverse logistics, products can flow back into the economy, creating new value and reducing environmental impact.
Check out NRF's hub designed to support retailers’ efforts to generate economic value while creating net positive environmental, social and community benefits.
For businesses, robust reverse logistics systems can mean significant savings. Recovering, reselling or recycling products helps offset the costs associated with returns and unsold inventory. For consumers, it means better experiences— easy returns, accessible refurbished products and a sense of contributing to sustainability. For governments and communities, reverse logistics helps meet environmental goals by diverting materials from landfills and reducing demand for virgin resource extraction.
As circularity gains importance, reverse logistics will become increasingly central to business strategy. The market is quickly evolving, driven by technological advancements, regulatory changes and shifting consumer behavior.
The future of reverse logistics is not simply about managing returns — it is about creating value, building trust and enabling a more sustainable economy. The players in this vast industry, from software providers to nonprofits, are proving that circularity is achievable at scale.
