Editor's note: This story is the second in a three-part series about how reverse logistics providers have upgraded their capabilities for the post-holiday returns rush and beyond. Read the previous installment here.
Simplicity is the name of the game for FedEx's returns services.
The delivery giant is beefing up its portfolio of digital tools to improve and streamline the post-purchase experience, with offerings like FedEx Easy Returns being a key component in that push, said Jason Brenner, SVP of digital portfolio, in a November interview with Supply Chain Dive.
FedEx Easy Returns launched last summer at 3,000 FedEx Office and Kohl’s locations, and ahead of the holiday season, Brenner said the service was ready for its first time navigating the returns rush that typically comes at the end of the year. Easy Returns allows consumers to drop off returns without a box or label, after which FedEx consolidates all returns and brings them back to shippers in one delivery. Rival UPS offers a similar service through its Happy Returns subsidiary.
"For us, it's about how do we leverage all of our digital touchpoints," Brenner said. "How do we leverage our physical network to make returns as easy as possible for our customers and then for their consumers? So that's what FedEx Easy Returns is about."
For the carrier to gain share in a reverse logistics space rife with competition this year, offering shoppers straightforward return options may prove to be critical. A report from the National Retail Federation and Happy Returns estimated that 19.3% of online sales would be returned in 2025.
Given the frequency of returns among online shoppers, retailers' policies on the matter are also playing a large role in consumers' decision making. Brenner highlighted a November FedEx report that found 54% of people surveyed ranked return policies as a top three consideration when shopping online.
"It actually informs whether or not customers will purchase in the first place, so the returns experience does have to be seamless," Brenner said.
While Brenner described Easy Returns as the company's "anchor product" for returns, FedEx has rolled out another service to address shippers' reverse logistics needs.
The company's Branded Returns offering enables customers to initiate returns directly from a retailer's website. A customizable portal allows companies to set return rules, refund options and messaging that fits their priorities, per FedEx. Brenner said Branded Returns is in its nascent stages and is being used by "a handful of customers" currently.
"We can differentiate around Branded Order Tracking, Branded Returns, and then the FedEx Easy Returns capability, again, blending that sort of physical and digital experience to make returns and exchanges and the whole post-purchase experience as seamless as possible," he said.
Returns are just one piece in FedEx's expanding digital toolkit. For example, the company has been scaling its picture proof-of-delivery capabilities in recent years, similar to other carriers.
One benefit of photo confirmation for shippers has been a reduction in refunds for fraudulent claims, Brenner said. If a recipient claims the delivery didn't come when it actually did, the shipper can use the photo confirmation as evidence for why a refund wasn’t issued.
A large home improvement retailer used FedEx's picture proof-of-delivery offering for that use case, according to Brenner. The company saved over $1 million in six months by not issuing automatic refunds to customers claiming a missing delivery, instead working with FedEx to verify whether deliveries were made, he added.
"We have a lot of these little use cases that are really starting to add up from enhanced order visibility, so it's saving our customers money [and] improving their customer experience," Brenner said.
