Retail Access Points:? The Ecommerce Product Return Solution of Choice

The rising cost of managing the product returns process is a huge challenge for ecommerce merchants and about half of all merchants charge a fee for processing a returns transaction.? Additionally, nearly all return transactions managed by the merchant require that the consumer drop off the product at some type of Access Point to help control the spiraling increased cost of managing the return product process.

The Access Point Networks

In the US, the USPS, FedEx, and UPS lead the way in offering thousands of convenient retail Access Points where the consumer can drop off their return shipments. USPS has nearly 30,000 staffed Post Office locations and parcel carriers UPS and FedEx have implemented contracted retail access point relationships with retailers such as Walgreens and CVS, covering over 45,000 retail locations.? UPS and FedEx Access Points also play a critical role within the ecommerce supply chain by acting as pickup points for consumers that choose to have their online purchased products delivered to an access point and held for pickup.

Residential Return Pickup Not an Affordable Option

Some merchants offer a special pickup option for a returns pickup when demanded by the consumer, but the consumer must bear the cost of the carrier pick-up, which can range up to $10.00 or more.? Consumers have demonstrated that they will generally not pay anything for this type of special pickup, and the ecommerce merchant will also not pay for a return-related, residential pickup.?

Additionally, the consumer is often-times not home to personally hand off the return shipment to the parcel carrier making the pickup, and leaving the package unattended outside the home is not an option due to the risk of theft and exposure to inclement weather.

The Cost of Returns Processing: A Threat to Ecommerce as We Know it Today?

Richpanel, a software company that automates customer service functions and improves customer satisfaction for ecommerce merchants, recently published these stunning statistics on ecommerce returns:

• Ecommerce return rates can be 2x to 3x higher than brick and mortar stores.
• Ecommerce returns rates hover around 20%-30% with some apparel related return rates reaching 50%.
• 54% of buyers say that free returns or exchanges are the 2nd biggest influence on whether they purchase from a brand or not.?
• 41% of consumers say they have purchased multiple items with the intent to return some of them.
• Almost 60% of consumers say that “experiencing return friction” results in a negative?merchant experience.

This data suggests that the returns process is still fraught with barriers for both the merchant and consumer to overcome. Additionally, the cost of managing and processing ecommerce returns is compromising merchant margins and potentially putting customer relationships at risk by negatively impacting repurchase behavior.??

Access Points Work Well to Support the Ecommerce Returns Process.

The Access Point solution for injecting return shipments into the UPS and FedEx networks is convenient for both the consumer, merchant, and parcel carrier, something to build upon as all impacted parties focus on improving the returns process for the consumer.

About HubBox: ?HubBox technology enables the consumer to pick up their package at a time and place that best suits them, which prevents shoppers from abandoning their online shopping cart, or risking not being home for their delivery. Access Points driven by HubBox technology are a dependable and lower cost alternative to home delivery. UPS and FedEx operate nearly 45,000 Access Points across the US.

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