{"id":24293,"date":"2022-11-20T18:49:05","date_gmt":"2022-11-20T18:49:05","guid":{"rendered":"https:\/\/www.parcelpending.com\/blog\/streamlining-retail-returns-with-an-open-locker-network\/"},"modified":"2024-10-10T12:38:20","modified_gmt":"2024-10-10T12:38:20","slug":"streamlining-retail-returns-with-an-open-locker-network","status":"publish","type":"post","link":"https:\/\/www.parcelpending.com\/en-gb\/blog\/streamlining-retail-returns-with-an-open-locker-network\/","title":{"rendered":"Streamlining Retail Returns With An Open Locker Network"},"content":{"rendered":"

The value of goods moved by customers back to sellers and manufacturers <\/span>in the <\/span>retail industry <\/span>is estimated to reach a value of $954 billion by 2029.<\/span>1<\/sup><\/span> The increasing value of the segment also means that the <\/span>returns process<\/span> is becoming a significant component of competitive differentiation for consumers and an important driver in a <\/span>customer<\/span>‘s shopping decisions. Simply put, a <\/span>customer<\/span> is more likely to shop with an <\/span>online retailer<\/span> if they know that the <\/span>returns process<\/span> will be quick, seamless, and easy \u2013 either using a courier service, in person at a <\/span>retail store<\/span> or <\/span>return<\/span> location, or with the support of smart locker technology.<\/span><\/p>\n

Smart lockers can be a <\/span>customer<\/span>– and budget-friendly solution for <\/span>retailers<\/span> to address the mounting pressures and costs for seamless returns. The <\/span>reverse logistics<\/span> market is growing and is expected to continue to grow, particularly with the increased adoption of smartphones and online shopping. As people buy more online, they also <\/span>return<\/span> more of those goods to <\/span>retailers<\/span> for a <\/span>refund<\/span> or exchange.<\/span><\/p>\n

The True Cost of Returns<\/strong><\/h2>\n

Along with the exponential growth of returns, so are the costs that <\/span>retailers<\/span> incur to deal with them. In 2021 alone<\/span>,<\/span> the total <\/span>return rate<\/span> for <\/span>unwanted items<\/span> rose to 16.6% from the previous year’s rate of 10.6%<\/span>,<\/span> and for <\/span>online sales<\/span>,<\/span> this number now reaches close to 30%.<\/span>2<\/sup><\/span>\u00a0 According to <\/span>Appriss Retail<\/span> and the <\/span>National Retail Federation<\/span>, for US <\/span>retailers<\/span> alone, the cost of returns accounted for $761 billion in lost sales.<\/span>3<\/sup><\/span> Recent research also indicates that returns add an additional 2.5 million tons of product, particularly clothing, to landfills <\/span>yearly<\/span>!<\/span>4<\/sup><\/span><\/p>\n

Increasingly, the quality of the returns experience is a key factor in improving <\/span>customer<\/span> loyalty and satisfaction <\/span>and an indicator of a strong <\/span>retail customer experience<\/span><\/a>. Statistics indicate that 92% of consumers will buy from a <\/span>retailer<\/span> again if the <\/span>customer<\/span> returns process<\/span> is easy<\/span>,<\/span> and 67% of shoppers check the details about making returns before following through with their purchase.<\/span>5<\/sup><\/span> Given this shifting reality, <\/span>retailers<\/span> must balance initiatives that reduce costs, and <\/span>prevent <\/span>fraudulent returns<\/span> and <\/span>return fraud<\/span> with services that satisfy customers.<\/span><\/p>\n

Leveraging Technology to Streamline the Return Process<\/strong><\/h2>\n

As the ease of making returns increasingly becomes a point of competitive differentiation, <\/span>retailers<\/span> and logistics providers <\/span>must<\/span> find innovative return solutions<\/a> to address the returns problem. By 2028, the <\/span>reverse logistics<\/span> market is expected to increase by 28%, therefore many <\/span>retailers<\/span> are looking into <\/span>return<\/span> initiatives that decrease bracketing (<\/span>when customers purchase multiple variations of a product with the intention of returning the ones that they don’t like or that don\u2019t fit<\/span>).<\/span>6<\/sup><\/span> They are also <\/span>adopting innovative <\/span>return policy<\/span> initiatives such as partial refunds, <\/span>store credit<\/span>, flexible exchange policies, or returns at a nominal cost to consumers<\/span><\/p>\n

Returns to <\/span>store<\/span> are the lowest cost option for <\/span>retailers<\/span> \u2013 and returns with smart lockers can provide an easy, self-service way to facilitate this process that also increases in-<\/span>store<\/span> foot traffic. While many are familiar with smart lockers \u2013 such as Parcel Pending\u2019s Buy Online, Pick-Up in Locker (BOPIL\u00ae) solutions \u2013 for in-<\/span>store<\/span> order pick-up, lockers can also be used for <\/span>retail returns<\/span>. With smart click and collect lockers<\/a>, <\/span>retailers<\/span> can allocate a set number of doors for returns, allowing <\/span>stores<\/span> to balance capacity between pick-ups and returns as needed.<\/span><\/p>\n

As Gary Winter, VP for Global Strategic Initiatives at Parcel Pending by Quadient points out, \u201cwe are making huge efforts to try to ease the challenge of returns for <\/span>retailers<\/span>. Not only has it become a significant point of competitive differentiation, <\/span>but<\/span> it’s also something that more and more <\/span>retailers<\/span> seem to be leaning into as a way to drive conversion. If customers don’t like an <\/span>item<\/span>, they feel free to simply <\/span>return<\/span> it. Smart lockers save money for <\/span>retailers<\/span> and make life easier for customers.”\u00a0<\/span><\/p>\n

How Returns Work with Smart Lockers<\/strong><\/h2>\n

For <\/span>retailers<\/span>, using smart contactless lockers<\/a> to facilitate returns is an easy and straightforward process for their customers. Here are the easy steps that a <\/span>customer<\/span> passes through to complete the process \u2013 from <\/span>return<\/span> initiation to <\/span>return<\/span> completion:<\/span><\/p>\n

    \n
  1. The <\/span>customer<\/span> selects the option online to <\/span>return<\/span> their <\/span>item<\/span> (or items) to a locker at one of your <\/span>stores<\/span>.<\/span><\/li>\n
  2. The <\/span>customer<\/span> receives a personalized QR code via email.<\/span><\/li>\n
  3. The <\/span>customer<\/span> makes their way to a convenient locker location and scans the <\/span>return<\/span> QR code.<\/span><\/li>\n
  4. A locker door opens automatically<\/span>,<\/span> and the <\/span>customer<\/span> places their <\/span>item<\/span> inside.<\/span><\/li>\n
  5. Once the <\/span>item<\/span> is inside the locker and the door is closed, the <\/span>customer<\/span> receives a confirmation <\/span>receipt<\/span> by email for the <\/span>returned item<\/span>.<\/span><\/li>\n
  6. A retail employee or carrier agent can then retrieve the <\/span>returned item<\/span>.<\/span><\/li>\n
  7. The <\/span>customer<\/span> can complete the entire <\/span>returns process<\/span> in less than 30 seconds.<\/span><\/li>\n<\/ol>\n

    Streamlining Returns with Parcel Pending by Quadient\u2019s Open Locker Network<\/strong><\/h2>\n

    While many <\/span>retailers<\/span> opt to have a private locker network dedicated to the pick-up and <\/span>return<\/span> of their <\/span>merchandise<\/span> only, this option may not be budget-friendly for every retailer. Other options are available. For instance, <\/span>retailers<\/span> can reduce upfront cost by sharing a locker network with other retailers (and even other local businesses) to facilitate order pick-ups and returns through an open locker network.<\/span><\/p>\n

    Parcel Pending\u2019s Open Locker Network allows <\/span>retailers<\/span> to manage returns in a way that both lowers operational costs and serves consumers\u2019 expectations for their retail experience with greater ease and less friction. Our flexible investment models, such as shared and hybrid locker networks, limit upfront costs and can even provide revenue-sharing opportunities \u2013 with many businesses realizing ROI within two years.*<\/span><\/p>\n

    Ready to fulfill MORE for your customers by joining our open locker network? Fill out the form below to speak to a Parcel Pending by Quadient representative today.<\/span><\/p>\n

    *Based on client results, your results may vary<\/span><\/p>\n

    Sources:<\/b><\/p>\n

      \n
    1. Data Bridge Market Research. <\/span>Reverse Logistics Market to Reach USD 954,500.37 Mn by 2029 with Key Players: FedEx, Optoro, Schenker, ReverseLogix<\/span><\/i>. einews.com. June 16, 2022.<\/span> https:\/\/www.einnews.com\/pr_news\/577094243\/reverse-logistics-market-to-reach-usd-954-500-37-mn-by-2029-with-key-players-fedex-optoro-schenker-reverselogix<\/span><\/a><\/li>\n
    2. Saleh, Khalid. <\/span>E-commerce Product Return Rate \u2013 Statistics and Trends [Infographic]<\/span><\/i>. www.invespcro.com. May 16, 2022.<\/span> https:\/\/www.invespcro.com\/blog\/ecommerce-product-return-rate-statistics\/<\/span><\/a><\/li>\n
    3. National Retail Federation and Appriss Retail. <\/span>Consumer Returns in the Retail Industry 2021<\/span><\/i>. nrf.com. January 25, 2022.<\/span> https:\/\/nrf.com\/research\/customer-returns-retail-industry-2021<\/span><\/a><\/li>\n
    4. Constable, Harriet. Your brand new returns end up in landfill. www.bbcearth.com.\u00a0 <\/span>https:\/\/www.bbcearth.com\/news\/your-brand-new-returns-end-up-in-landfill<\/span><\/a><\/li>\n
    5. Saleh, Khalid. <\/span>E-commerce Product Return Rate \u2013 Statistics and Trends [Infographic]<\/span><\/i>. www.invespcro.com. May 16, 2022.<\/span> https:\/\/www.invespcro.com\/blog\/ecommerce-product-return-rate-statistics\/<\/span><\/a><\/li>\n
    6. Data Bridge Market Research. <\/span>Reverse Logistics Market to Reach USD 954,500.37 Mn by 2029 with Key Players: FedEx, Optoro, Schenker, ReverseLogix<\/span><\/i>. einews.com. June 16, 2022.<\/span> https:\/\/www.einnews.com\/pr_news\/577094243\/reverse-logistics-market-to-reach-usd-954-500-37-mn-by-2029-with-key-players-fedex-optoro-schenker-reverselogix<\/span><\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

      The value of goods moved by customers back to sellers and manufacturers in the retail industry is estimated to reach a value of $954 billion by 2029.1 The increasing value of the segment also means that the returns process is becoming a significant component of competitive differentiation for consumers and an important driver in a […]<\/p>\n","protected":false},"author":3,"featured_media":22804,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[256],"tags":[],"class_list":["post-24293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-retail-en-gb"],"acf":[],"yoast_head":"\nStreamlining Retail Returns With Open Locker Networks | Parcel Pending<\/title>\n<meta name=\"description\" content=\"Returns are normal in retail, but how do you optimize the process? 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