FedEx Teams With Blue Yonder on ‘Box-Free’ Returns Program

FedEx introduced a service to make it easier for customers to send in returns.

Beginning this summer, FedEx Easy Returns will allow customers to access a “low-cost, box- and label-free returns solution” in partnership with supply chain management company Blue Yonder, according to a Tuesday (March 25) news release.

Customers can return items without needing to print labels or have packaging on hand. Merchants, meanwhile, can ensure the speed and accuracy of a return while potentially reducing waste, the release said.

The service will be available at roughly 3,000 drop-offs at FedEx Office and Kohl’s stores, per the release. It comes as retail returns are 60% higher than they were a decade ago.

“Returns are a critical part of the customer experience, and present a significant challenge to retailers, which is why we are excited to support FedEx with the new service to make returns more efficient,” Tim Robinson, vice president for returns at Blue Yonder, said in the release. “Blue Yonder’s robust technology will be the driving force, allowing FedEx to power more retail counters and return processing centers across the U.S., further enhancing the convenience of the service. As a result, we’re able to offer a complete solution that improves returns processing.”

The announcement came days after FedEx reduced its full-year and quarterly revenue outlook for the third consecutive quarter.

“Our revised earnings outlook reflects continued weakness and uncertainty in the U.S. industrial economy, which is constraining demand for our business-to-business services,” John Dietrich, FedEx Corp. executive vice president and chief financial officer, said during an earnings call Thursday (March 20). “Despite this uncertainty, I’m confident we are well positioned to execute on our transformation initiatives and create stockholder value.”

One of the factors influencing the revised outlook is the company’s termination of its contract with the U.S. Postal Service, which ended last year. This contract had been a revenue stream for FedEx, and its loss has challenged the company to replace the business volume it provided.

To hone its competitive edge, FedEx is doubling down on its tech spending, with AI-powered logistics optimization, predictive analytics, and enhanced route planning all central to the company’s plans to bolster efficiency. In addition, FedEx’s investment in autonomous delivery and electric vehicle fleets is in line with larger industry trends toward automation and sustainability.