FedEx to offer online returns service to compete with Amazon

FedEx is taking its competition with Amazon to the e-commerce returns space. In early 2023, FedEx will launch FedEx Consolidated Returns in the U.S., a solution designed to provide retailers with low-cost, convenient e-commerce return options to their customers. FedEx will facilitate this offer through supply chain services provided by FedEx Logistics and its FedEx Office physical store chain.

Shoppers who purchase online from participating retailers can drop off merchandise they wish to return at approximately 2,000 FedEx locations, without the need for a box or label. The returned items will then be consolidated with other return packages from a variety of retailers to save materials and space.

The items are then processed through FedEx Logistics and shipped back to the retailer via LTL shipping options. According to FedEx, this consolidated returns service reduces carbon emissions compared to separate pre-packaged/pre-labeled returns because the returned items will be consolidated into one box before being sent to the returns center.

FedEx has also been accepting Happy Returns online returns at select FedEx office locations since October 2020.

FedEx has been aggressively competing with Amazon, from electric delivery vans to offering managed e-commerce services and piloting self-driving cars for trucking to integrating two cloud solutions for Salesforce on its ShopRunner e-commerce platform.

Now, the leading package delivery provider is preparing to directly challenge Amazon’s streamlined customer returns process. Amazon offers thousands of free return options for the millions of items sold on its site, and most customers buy products on its U.S. site with at least one free return option.

After obtaining a QR code from the Amazon Return Center, customers can hand over the returned items to Amazon staff without boxes or labels, and the staff will pack and ship them for free. Amazon offers free box-free returns at its own physical stores, Whole Foods Market supermarket chains, and third-party partners, including Kohl's and The UPS Store.

“As the returns market grows, FedEx continues to explore innovative alternatives for our customers. While this solution will provide merchants with a low-cost returns option, it’s also a simple and convenient process that helps retailers provide a shopper-friendly experience,” said Ryan Kelly, vice president of e-commerce and retail marketing for FedEx Services.

“FedEx Consolidated Returns is another way FedEx is helping merchants build customer loyalty by streamlining the returns process,” said Patrick Super, vice president of retail at FedEx Supply Chain. “Having a streamlined, yet low-cost option helps retailers stand out in a competitive marketplace and grows FedEx’s overall returns portfolio.”

Editor ✎Estella/

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