Pitney Bowes Takes on Amazon With PackageHub Returns Partnership

Shipping and mailing company Pitney Bowes launched a returns drop-off network with PackageHub.

The network allows for no-cost, “no-box and no-label returns” at nearly 1,000 locations, “with hundreds more launching soon across the country,” according to a Wednesday (Jan. 3) press release.

“eCommerce returns are among the fastest-growing costs for retailers — costs that are sure to increase given the historic levels of online shopping we’ve seen this holiday,” Gregg Zegras, executive vice president and president of global eCommerce at Pitney Bowes, said in the release. “We have the longest-standing eCommerce returns service in the industry — and now, with the launch of this network with our partner, PackageHub, we have access to their network of premium drop-off locations across the U.S., making this the most comprehensive returns service, capable of lowering the cost of returns while simultaneously improving the consumer experience.”

eCommerce brands already using Pitney Bowes return service and its platform partners will get immediate access to the drop-off network, with no additional integration needed, the release said. The company has 30,000 postal locations where it offers no-label returns.

With the partnership, Pitney Bowes and PackageHub take on Amazon, which also offers label-free, box-free returns at no cost.

PYMNTS Intelligence found that 33.4% of American consumers consider free online returns —no-cost online returns with printable shipping labels provided by retailers — to be very or extremely important.

“The option to change their minds about an item or rectify their dissatisfaction without paying extra is considered essential,” the PYMNTS Intelligence report said. “This expectation has become widespread, making free returns a standard practice in the industry. Consumers seek out retailers that offer this service.”

Still, the economic landscape has forced retailers to examine their return policies, as rising costs for shipping, processing and handling have made it tough for them to absorb the expense of free returns. Some companies have begun charging for returns that were once free.

In an interview with PYMNTS posted in August, Loop Returns CEO Jonathan Poma examined the state of returns and the considerations for retailers to recoup their costs.

“If you want to charge, you better be damn sure you’re delivering an exceptional returns experience and exceptional purchase experience,” Poma said.

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