Dive Brief:
- FedEx's newly launched Returns Technology tool is a full visibility tool for the reverse supply chain, allowing e-tailers to track the return of items from the consumer back to the warehouse.
- The reverse logistics tool intends to allow e-tailers to "manage inventory, analyze returns trends and make more informed decisions based on shoppers’ returns behaviors."
- As e-commerce swallows consumer spending, it's increasingly important for 3PLs to offer retailers and e-tailers a more efficient and effective returns method.
Dive Insight:
XPO Logistics is known for its efficient reverse logistics, so FedEx's move indicates not only a step toward greater competition, but also a necessary step toward more fully serving e-tailers and consumers, as consumer spending habits reflect more online purchases.
According to a recent Happy Returns survey, online shoppers hate making returns to an online store, and actually prefer easy, in-store returns. Consumers don't want to pay for return postage, they want immediate refunds, and most don't even have consistent, easy access to a printer to print return labels.
But consumers' dislike of online returns could also be because the returns process for many e-tailers and retailers is such an enormous hassle. A 3PL with a fast and easy returns process could change how consumers feel about online returns, and subsequently create a more loyal consumer base and help e-tailers widen profit margins.
That's the next step in growth for any business — after meeting consumer expectations, you predict what they'll want next.
As the competition heats up between 3PLs in a tight trucking market and the e-commerce boom, a solid reverse logistics program may be necessary for 3PLs to remain viable.
