Dive Brief:
- Amazon has integrated returns management platform ReturnGo with its Multi-Channel Fulfillment service, allowing third-party sellers to automate and streamline their reverse logistics, according to a Nov. 7 announcement.
- ReturnGo, which helps process more than 250,000 returns a month, provides customers with a return and exchange portal embedded into sellers’ stores. It can connect to any existing carrier or shipping aggregator used by shippers and features a growing network of warehouses and drop-off points, per its website.
- Multi-Channel Fulfillment provides sellers with fulfillment and delivery services for orders placed outside of Amazon's marketplace. Using ReturnGo will help them "offer an automated returns experience that’s simple and easy to use for their shoppers," said Wain Yu, Amazon Multi-Channel Fulfillment director, in a statement.
Dive Insight:
Amazon continues to bolster its suite of fulfillment offerings as it aims to become a one-stop shop for sellers' logistics needs. Offering ReturnGo through Multi-Channel Fulfillment, or MCF, strengthens its post-purchase capabilities by automating the returns process.
"While Amazon MCF does support returns and return validations, there’s no automation available for creating returns through Amazon MCF, so the process is manual and time-consuming," according to ReturnGo.
ReturnGo is synced with MCF so that when a return is approved on the platform, a return authorization is created in MCF, per its website. ReturnGo also creates a prepaid return label to be distributed on the seller's behalf. When the returned items are processed in the warehouse, the ReturnGo platform is updated with that information.
There are some limitations to the integration with MCF, according to ReturnGo. Cost-based returns fees and multiple shipments per return request are not supported, although it notes multiple shipments will be supported soon.
Delivery and fulfillment providers beyond Amazon are pushing for better reverse logistics capabilities as retailers pine for easier and more cost-effective returns. UPS recently acquired Happy Returns to offer up a consolidated returns service for its larger retail customers.
Online return rates decreased from 21% in 2021 to 17% 2022, according to the National Retail Federation, falling in line with overall return rates.
