Manufacturer's perspective. If you're looking for business opportunities, something with a huge schlep blindness quotient[1], if you love adversarial thinking, then you'll love 'Reverse Logistics'. Also maybe if you're a politician looking to score some jobs for your district.
The basic economic lever is simple with implications that go far: it costs more to process a returned good than the value one could accrue from reselling it because returned goods need to be processed three times while regular goods only need to be processed once. If 3% of your shipped goods are returned you are making a healthy profit. If 10% are returned you are breaking even. If 20% are returned you are going under. Goods are usually manufactured at 25% their retail cost and businesses have overhead that profit needs to cover.
A lot of the return cost is additional labor and shipping. If you can minimize transport (sort returns at local factories/DCs rather than shipping back to China) and minimize cost of processing returns with low-skill labor (say supplementing with high resolution cameras/scales/machine learning inspection by comparing your 'returned' good against thousands of known good versions of your good) one could tackle this. Laws would help in that they would force product designers to push to more assembly and less fabrication steps and fewer steps overall.
The basic economic lever is simple with implications that go far: it costs more to process a returned good than the value one could accrue from reselling it because returned goods need to be processed three times while regular goods only need to be processed once. If 3% of your shipped goods are returned you are making a healthy profit. If 10% are returned you are breaking even. If 20% are returned you are going under. Goods are usually manufactured at 25% their retail cost and businesses have overhead that profit needs to cover.
A lot of the return cost is additional labor and shipping. If you can minimize transport (sort returns at local factories/DCs rather than shipping back to China) and minimize cost of processing returns with low-skill labor (say supplementing with high resolution cameras/scales/machine learning inspection by comparing your 'returned' good against thousands of known good versions of your good) one could tackle this. Laws would help in that they would force product designers to push to more assembly and less fabrication steps and fewer steps overall.
[1] http://www.paulgraham.com/schlep.html