O nline sellers know that most customers ( 54 %) want free returns or exchanges . In fact , they are the second most important reason that influences whether or not shoppers buy from a brand .
But reverse logistics is an ongoing challenge for shippers and the carriers that serve them . With ecommerce returns running between 20-30 % this continues to be a challenge for both shippers and logistics providers . “ Reverse Logistics is growing rapidly in tandem with the growth of ecommerce sales ,” says Jason Garcia , SEKO Logistics ’ Corporate Cartage Manager . “ As part of the process , if a customer is dissatisfied with the product , they will return the product . Returns are common for a multitude of reasons that include products not matching the description , wrong product , wrong size , damage or defect , buyers ’ remorse , and the list goes on .”
Finding logistics pros to get those unwanted products back to shippers was a real problem for SEKO , an end-to-end global logistics company . “ The biggest challenge has been getting local cartage providers to complete not only value-add deliveries but any subsequent returns from those deliveries ,” he said . “ The pandemic played a huge role in this as we saw many providers close their doors . As we looked for providers to cover this scope of work , the struggle continues when it comes to rates . We work on negotiating competitive rates for deliveries but even more competitive rates on any returns . These rate negotiations keep us competitive but make it a challenge for logistics providers .”
For this reason , in February 2023 SEKO teamed up with a company called Happy Returns . This company offers a brickand-mortar alternative to mailed returns . The goal was to help SEKO ’ s merchant clients reduce the environmental and financial cost of reverse logistics .
Happy Returns is a PayPal company that accepts and processes box-free returns for retailers at its network of more than 5,000 Return Bars across the United States . These multi-brand Return Bars are found within major retailers such as FedEx , Staples and Ulta Beauty . About three-quarters of U . S . consumers are within 10 miles of one of these Return Bars .
This alliance with Happy Returns expands SEKO Logistics ’ existing returns management services . “ There is a huge opportunity in retail reverse logistics right now as it ’ s still an area of the business that does not get as much attention in our space ,” says Brian Bourke , SEKO ’ s Global Chief Commercial Officer . “ There have been many investments in improving conversions and customer experience on the forward and outbound side . Technology enablement for a better returns experience is finally catching up thanks to platforms and partners like Happy Returns .”
The Drop-Off in Person Option
Consumers of participating retail clients who initiate a return in SEKO ’ s OmniReturns portal can now choose a “ drop-off in person ” option . They receive a QR code that enables them to return their merchandise without printing labels or boxing their items .
After customers use the Return Bar , they receive approval on their refund , credit or exchange immediately . Happy Returns centralizes and compiles merchandise before taking it to a regional Return Hub in reusable totes , creating a lower environmental impact than if merchandise was shipped individually back to a warehouse . At the Return Hub , goods are sorted and then sent in bulk to SEKO ’ s hub facility . Compared to mailed returns in cardboard boxes , Happy Returns ’ in-person returns cost merchants around 40 % less .
Technology ’ s Evolution for Reverse Logistics
“ Technology continues to evolve in the transportation industry as a whole ,” says Garcia . “ Technology in reverse logistics gives visibility to the client on the product ’ s journey back to the distribution center or returns center . This visibility lets our clients know when the product is expected to return to their inventory so it can be resold . In addition , building partnerships with companies such as Happy Returns allows seamless returns with consumers who no longer need to stress about making sure the product is packaged and labeled properly . With their 5000 + Return Bars nationwide , it provides another option in the returns process that reduces the hassle .” CLDA
spring 2023 I customized logistics & delivery Magazine 35