Retail Dive: FedEx to Introduce a Consolidated Returns System in 2023
On Monday, FedEx revealed plans to establish a consolidated returns service in 2023 that will use less-than-truckload services to reduce shipping costs for customers. FedEx Consolidated Returns will make it possible for consumers to return products at one of the roughly 2,000 FedEx Office locations without a box or mailing label.
Thereafter, FedEx Logistics will use its less-than-truckload service to return the items to the shipper together with returns from other retailers. In the wake of the epidemic, the number of returns has skyrocketed, and the reverse logistics market has become increasingly expensive as a result.
A FedEx spokeswoman confirmed via email that the business had in the past provided consolidation services to the company's strategic clients. The introduction of the consolidated returns program represents an extension of the service to cover a wider market.
According to a survey conducted by the National Retail Foundation and Appriss Retail, in 2021, retailers lost an average of $166 million in inventory returns for every $1 billion in sales. Customers have been pushing stores like Zara to offer free shipping and returns, but the company has instead started charging for returns.
"Not only will this solution give a low-cost returns alternative for merchants, but it is also a straightforward, hassle-free approach that will assist shops in providing a customer-friendly experience for their shoppers," said Ryan Kelly, Vice President of e-commerce and retail marketing at FedEx.
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