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FedEx zeroes in on reverse logistics (FDX)

FedEx announced a new platform for package returns, dubbed FedEx Returns Technology, that will enable merchants to manage their returns and give customers access to an easier return process

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FedEx announced

The company didn't specify when it planned to make this offering available to retailers and their customers, but it offered several details on its potential use:

  • Retailers and other sellers will be able to use the platform to gain critical insights on inventory management and the location of return packages in transit.
  • In addition, consumers will be able to drop off their packages for return at one of the
  • From there, the logistics giant's employees will package the return and send it back to the retailer. This helps meet consumers' preferences for in-store returns —
  • an Optoro
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FedEx Returns Technology aims to improve the returns process, which is a major pain point in the logistics industry, for a number of stakeholders. The National Retail Federation estimated earlier this year that 13% of all goods purchased over the holiday season would eventually be returned, highlighting the sheer volume of parcels that logistics providers have to handle on the returns side.

Additionally, an AlixPartners study found the variable cost per package returned can reach $8 per parcel, and it can take as many as six days before the item is ready for resale by a retailer, eating into retailers' revenue and profit margins. Moreover, meeting consumers' desire for in-store returns could help attract retailers looking to improve the customer relationship. If the platform is able to help FedEx and its retail customers cut costs, streamline return shipments, and strengthen customer engagement, it could push rival logistics providers like UPS and DHL to explore launching their own in-house platforms.

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