Preparing for Holiday Returns

October 22, 2020


According to the co-founder and CEO of Happy Returns, about 5% to 10% of in-store purchases are returned. However, for online purchases, returns increase to 15% to 40%. Much of the higher rate of online returns is due to not being able to see an item in person. A consumer may order multiple sizes or colors to try on at home, and then ship or take back what they do not want, with shipping paid for by the retailer.

FedEx and UPS have promoted their retail partners such as Michaels and Dollar General as pick-up and drop-off locations while Amazon has partnered with Kohl’s. Meanwhile, Staples announced a partnership with Optoro, a technology company that works with retailers and manufacturers to manage and resell their returned and excess merchandise. The service, named Express Returns, allows consumers who purchase items from retailers such as Best Buy, Target, Bed Bath & Beyond, IKEA, American Eagle, B.J.’s and Under Armour that use the Optoro platform to obtain a QR code that will be scanned when they return the item to a Staples store. Items can be returned loose, without packaging, and will be placed in a shipping pouch at Staples. Optoro plans to expand Express Returns to additional retail chains in the future.

Meanwhile, Happy Returns announced a similar solution with FedEx Offices by allowing its retail partners to return products to FedEx Office stores without a box or label for an immediate refund or exchange. The customer receives a QR code before bringing both the item and the code to a FedEx Office store. FedEx then gathers the box-less goods from different companies into one shipment and sends them to one of Happy Returns’ two regional processing hubs.

According to FedEx’s Chief Marketing Officer Brie Carere, returns drive more shoppers to brick-and-mortar stores like FedEx Office. More than 50% of FedEx Express and FedEx Ground returns were tendered at retail in July and August, up from 44% for the same period in 2019.

Optoro provides a returns planning checklist for retailers on its website and warns that a shift to e-commerce this holiday season could lead to significantly higher ecommerce return rates in January, up to 3x more than brick and mortar purchases.


ABOUT SPEND MANAGEMENT EXPERTS

Spend Management Experts provides strategic guidance to optimize your supply chain. Using cost modeling technology and market intelligence, we help companies with their transportation, distribution and fulfillment spend. Often large shippers can reduce their spend across the supply chain by 20% or more. We specialize in reducing distribution costs, increasing efficiencies, dynamic reporting, greater budgeting and forecasting accuracy and optimizing supply chain execution. We leverage our proprietary models to identify savings and build negotiation strategies based on data and business cases. As industry experts, our fresh approach provides clients with straightforward details on exactly how savings are derived. Spend Management Experts is your competitive edge, delivered.

Connect with Spend Management Experts on TwitterLinkedIn, and the Spend Management Experts blog.

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Preparing for Holiday Returns

October 22, 2020


According to the co-founder and CEO of Happy Returns, about 5% to 10% of in-store purchases are returned. However, for online purchases, returns increase to 15% to 40%. Much of the higher rate of online returns is due to not being able to see an item in person. A consumer may order multiple sizes or colors to try on at home, and then ship or take back what they do not want, with shipping paid for by the retailer. FedEx and UPS have promoted their retail partners such as Michaels and Dollar General as pick-up and drop-off locations while Amazon has partnered with Kohl’s. Meanwhile, Staples announced a partnership with Optoro, a technology company that works with retailers and manufacturers to manage and resell their returned and excess merchandise. The service, named Express Returns, allows consumers who purchase items from retailers such as Best Buy, Target, Bed Bath & Beyond, IKEA, American Eagle, B.J.’s and Under Armour that use the Optoro platform to obtain a QR code that will be scanned when they return the item to a Staples store. Items can be returned loose, without packaging, and will be placed in a shipping pouch at Staples. Optoro plans to expand Express Returns to additional retail chains in the future. Meanwhile, Happy Returns announced a similar solution with FedEx Offices by allowing its retail partners to return products to FedEx Office stores without a box or label for an immediate refund or exchange. The customer receives a QR code before bringing both the item and the code to a FedEx Office store. FedEx then gathers the box-less goods from different companies into one shipment and sends them to one of Happy Returns’ two regional processing hubs. According to FedEx’s Chief Marketing Officer Brie Carere, returns drive more shoppers to brick-and-mortar stores like FedEx Office. More than 50% of FedEx Express and FedEx Ground returns were tendered at retail in July and August, up from 44% for the same period in 2019. Optoro provides a returns planning checklist for retailers on its website and warns that a shift to e-commerce this holiday season could lead to significantly higher ecommerce return rates in January, up to 3x more than brick and mortar purchases.


ABOUT SPEND MANAGEMENT EXPERTS

Spend Management Experts provides strategic guidance to optimize your supply chain. Using cost modeling technology and market intelligence, we help companies with their transportation, distribution and fulfillment spend. Often large shippers can reduce their spend across the supply chain by 20% or more. We specialize in reducing distribution costs, increasing efficiencies, dynamic reporting, greater budgeting and forecasting accuracy and optimizing supply chain execution. We leverage our proprietary models to identify savings and build negotiation strategies based on data and business cases. As industry experts, our fresh approach provides clients with straightforward details on exactly how savings are derived. Spend Management Experts is your competitive edge, delivered. Connect with Spend Management Experts on TwitterLinkedIn, and the Spend Management Experts blog.

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