Dive Brief:
- FedEx is launching a consolidated returns service that shippers can begin using this summer, the parcel carrier announced Tuesday.
- The service, FedEx Easy Returns, will allow consumers to return products box-free and label-free at 3,000 FedEx Office and Kohl's locations across the U.S., using a QR code to complete the drop-off process. FedEx then consolidates the various returns and delivers them back to merchants in one shipment.
- "Returns will be routed through a reverse logistics facility for optimal recovery, helping merchants ensure the accuracy and speed of the return, as well as potentially reducing waste," FedEx said in the announcement.
Dive Insight:
Logistics providers are strengthening their returns capabilities to help companies find more effective ways to handle increasing returns volumes. Rival UPS offers a consolidated returns service via its Happy Returns subsidiary, which it purchased in 2023, and DHL Supply Chain acquired reverse logistics provider Inmar Supply Chain Solutions earlier this year to grow its services.
FedEx already offers other returns options, but it said Easy Returns' consolidation aspect makes it a distinct offering from the rest of its portfolio. By receiving multiple customer returns in one shipment, shippers can reduce packaging expenses and the amount of returns in transit they need to track, per FedEx.
"With other FedEx returns solutions, each package ships individually," FedEx said on its website. "When you'll use our FedEx Easy Returns service, you will exchange speed for reduced costs."
Cost is a key consideration for retailers seeing high returns volumes, with some simply opting to give customers refunds without needing the item returned to avoid added expenses.
FedEx Easy Returns is designed for lightweight items that can fit in a poly bag, such as apparel and accessories, according to FedEx. It is also geared toward merchants seeing about 3,000 returns or more per year.
FedEx has dipped into the consolidated returns space before. It announced an agreement with Happy Returns in 2020 to offer box-free and label-free returns at FedEx Office locations. In 2022, FedEx unveiled a consolidated returns service leveraging its FedEx Logistics subsidiary.
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