Dive Brief:
- Overstock.com and UPS are launching a pilot program in Q4 for more convenient customer returns, CEO Jonathan Johnson said on the online furniture retailer's earnings call last week.
- Through the pilot, customers can have product returns picked up at home without reboxing the product, according to Johnson. Overstock’s website currently advises customers to ensure their returned item is packaged well and is in a shipping-suitable box.
- The pilot will help both companies better understand customer preferences and evaluate their end-to-end shopping experience, Johnson added. "Initiatives like this one with UPS can go a long way in generating repeat business from our customers."
Dive Insight:
The program with Overstock is one of several pilots UPS is running as part of its recently announced logistics-as-a-service offering, the delivery giant said in an emailed statement. Creating a robust reverse logistics business is one of the five key pillars of the initiative, which aims to build new revenue streams for the company, CEO Carol Tomé said on an earnings call.
"We don’t have more details to share just yet, but we see strong potential for new value creation for our customers as we combine the strength of UPS’s physical network with digital-first tools and platforms," UPS said in its statement.
An Overstock spokesperson said the company did not have more to share on the program beyond what was said in its earnings call.
A Q4 pilot launch for the returns initiative would put its debut in the midst of the peak holiday shipping season, which is expected to lead to a spike in product returns. UPS handled more than 60 million return packages from Nov. 14, 2021 to Jan. 22, 2022, marking an all-time high for the company.
UPS and Overstock are already familiar returns partners. According to Overstock’s website, customers can get a return shipping label through UPS.
