A recent report by logistics giant FedEx shows that no-label/no-box shipping is the return option of choice in the US. The company surveyed over 1,000 consumers and 500 US businesses in December 2023.
Respondents agreed overall that no-box/no-label is more convenient, straightforward, easier, and less stressful than other return options.
Ryan Kelly, vice president of commercialization at FedEx says: “The reality is that many consumers today don’t have printers or adequate packaging materials at home, which may lead to a poor and less sustainable shipping experience. Additionally, boxes often don’t fit in the mailbox, and consumers want a receipt for the return transaction.
Consumer returns should be priority
In recent weeks, the challenge of returns shortly after the festive season, has prominently dominated the logistics sector.
Shipping platform Sendcloud has found that 79% of fashion retailers charging for and paid returns are increasingly taking the stage in the fashion industry. The company recently researched the top 100 UK retailers. The findings shed some light on the UK’s e-commerce market.
On the other side of this, merchants are making returns a top priority. Doddle collaborates with over 900 retailers and logistics providers worldwide to manage first and last-mile delivery. The company’s 2023 report on market findings shows that 75% of merchants say improving returns is important.
But the FedEx report emphasizes that customers lack confidence in some aspects of shipping items. These are some key findings of the study:
- Almost half of consumers expected to return more or the same number of items in the holiday in 2023 than in previous years.
- Consumers are more confident about returning items to the store where items were purchased or taking them to a shipping store for returns than returning them to a different location, or shipping from their homes.
- Majority of consumers are aware of no-label/no-box shipping and find it convenient.
- Consumers say sustainability is important.
Also Read: Parcel returns cost UK retailers a hefty $76 billion per year
What is reverse logistic?
Reverse logistics is the process of returning goods back into the supply chain to be reused. The process forms an important part of the supply chain. It often involved the return of goods, for example, damaged items.
Grand View Research reports that the global reverse logistics market will grow at a compound annual growth rate of 9.4%. “The global expansion of e-commerce businesses and the increasing frequency of returns and replacements of products have propelled the demand for reverse logistics services.”
The report adds that another aspect contributing to the growth of the market is government regulation. Because the e-commerce sector has experienced growth, businesses have needed to ensure a good reverse logistics process.
“The e-commerce service providers emphasize reverse logistics as certain customers prefer to initially analyze the ordered products physically and then decide whether to keep them. If the product is not worth buying, customers can return it with the help of reverse logistics. For instance, buyers can only test clothing after making a purchase decision, especially for online shopping.”
Now Read: Easy parcel returns: A guide to using Uber Connect
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
