UPS addresses holiday returns head on

While the 2021 holiday season is in the rearview mirror, the reverse logistics season remains in full swing, to be sure.

That is the word based on data provided to LM by Atlanta-based global freight transportation and logistics services provider UPS.

A UPS spokesman noted that the peak holiday shipping season remains intact, based on the significant—and record-breaking—number of holiday returns it is handling. As an example, for the holiday shipping season (including returns), which it defines as running from November 14-January 22, UPS said it will handle more than 60 million return packages, which represents a new record, equating to an expected increase of more than 10% over the previous record, for the company’s holiday returns, set in 2020, at around 55 million holiday returns.

“At UPS, we see that as more than 60 million opportunities to help our customers, particularly small and medium-sized businesses, be more successful by helping to make the returns process easier for both retailers and consumers,” a UPS spokesman said.

UPS offered up a whole host of data points focused on holiday returns, which are below:

One in four Americans (27%) expect to make a return this holiday season, with 41% of those say they plan to return three or more items;

• Returns activity varies by region. Fewer Americans living in the West (21%) expect to return an item this holiday season compared to those living in the Midwest (27%), the South (29%), and the Northeast (30%);
• More than one in five (21%) U.S. adults made a return before Christmas;
• 43% of American adults describe the convenience of drop-off locations or return requirements to be present for pickup as the biggest barriers to returning a holiday;
• More than a third of respondents (35%) say they would pay more to return an item if they knew the process was more sustainable; and

It’s important for businesses to make returns easy for customers;

• 35% of customers say that returns are a frustrating experience;
• 79% of customers say a positive returns experience influences the decision to make future purchases; and
• 84% expect online retailers to offer a no-cost return option

With 43% of American adults saying that the convenience of drop-off locations or return requirements to be present for pickup as the biggest barrier to returning a holiday gift, the UPS spokesman highlighted various things UPS has worked on to make holiday returns easier.

“UPS has about 21,000 Access Points around the country to drop off return packages, including The UPS Store, CVS, Michaels, Advance Auto Parts, Package Express Centers, and thousands of independent merchants,” he said. “More than 90% of U.S. consumers will find a UPS Access Point location within five miles of their home.”

As for what merchants can do, he pointed to the company’s Digital Returns offerings, which are label-less, with a recipient pre-boxing items and brings them to the UPS Store, where they show a QR code for the store associate to print the label. Another option is box-less and label-less, in which a recipient brings an eligible item (non-fragile soft-goods including apparel, footwear, etc.) to The UPS Store where they show a QR code and hand over an unboxed item for the store associate to pack the item in a plastic polybag and also print the label.

And other options cited by the spokesman include:

• Consolidated Returns – Select merchants are offered the ability to accept consumer returns without packaging. This streamlines the process for both consumers and retailers;
• UPS Returns® Plus – With UPS Returns Plus, a UPS driver comes to a customer’s door to collect the return shipment. UPS creates the return label ahead of time, and the driver will bring it when they pick up the shipment; and
• UPS Printed Labels – Merchants can include a printed return label right in the box. They also have the option to allow their customers to receive an emailed return label directly from UPS