FedEx Office employee processing return from ecommerce customer
Source: FedEx

FedEx Launches New Low Priced Ecommerce Returns Solution


FedEx announced plans to launch a new low-priced, easy ecommerce returns service for online brands and merchants called FedEx Consolidated Returns.

What you need to know: The carrier will name the new service FedEx Consolidated Returns and is launching the returns solution in response to rising demand by online businesses to manage rising return rates.

According to the National Retail Federation (NRF), the return rate for online sales averaged 20.8% in 2021, with a rising trend across all retail sales channels.

Why it matters: Customers today expect hassle-free returns on products they purchase online, adding to the convenience factor ecommerce provides.

Sizing, colors, fit, and sometimes functionality are not always easy to convey on static product pages, even as merchants use more images and detailed videos to describe products.

And with Amazon, again, leading the way in indoctrinating online shoppers that returns must be simple and free — a liberal return policy has become a critical factor influencing a shopper’s buying decision.

How it works: FedEx Consolidated Returns is facilitated through supply chain services offered by FedEx Logistics and FedEx Office.

Customers who purchased from participating merchants can drop off the item(s) they wish to return at more than 2,000 FedEx Office locations across the country, with no box or label required.

The FedEx Office store will consolidate the item(s) with returns from other participating online merchants, saving materials and space.

Now, FedEx Logistics processes the items and sends them back to the merchants via a less-than-truckload option.

Who will benefit: This new returns service is ideal for mid-sized to large brands and online merchants with significant returns volume.

What they said: “As the returns market grows, FedEx continues to explore innovative alternatives for our customers,” explained Ryan Kelly, Vice President of Ecommerce & Retail Marketing at FedEx Services.

“While this solution will provide a low-priced returns option for merchants, it’s also a simple, convenient process to help retailers deliver a shopper-friendly experience.”

“FedEx Consolidated Returns is another way FedEx is helping merchants build customer loyalty by making the returns process simple and effective,” added Patrick Super, Vice President, Retail, at FedEx Supply Chain.

FedEx Consolidated Returns Key Points

  • FedEx Consolidated Returns: new low-priced ecommerce solution for low-weight returns tendered through FedEx Office and consolidated back to the merchant via FedEx Supply Chain reverse logistics.
  • Value for merchants: lower-cost solution for high-volume returns, end-to-end visibility of return items, helps provide shopper-friendly experience in a competitive ecommerce market.
  • Convenience for shoppers: no box or label needed with access to approximately 2,000 FedEx Office locations. Simple return process using a QR code.
  • Environmental benefit: may reduce carbon emissions compared to single prepackaged/prelabeled returns as return items are consolidated into one box before being shipped to the returns center.

What else is important: FedEx Consolidated Returns marks the latest addition to the growing FedEx Returns portfolio expected to be available in early 2023.

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