Pitney Bowes and PackageHub© Launch National ‘No-Box/No-Label’ Returns Drop-off Network

Rhea-AI Summary

Pitney Bowes (PBI) announces launch of returns drop-off network with PackageHub, offering no-box and no-label returns at nearly 1,000 locations across the US at no additional cost. Hundreds more locations expected in the coming months, benefiting retailers and consumers. The network is expected to reduce exceptions during processing, fraud, and increase consumer convenience.

Positive

• Convenient returns service at no additional cost to retailers or consumers
• Access to nearly 1,000 locations with hundreds more launching soon
• Reduction in exceptions during processing with no-label returns using QR code
• Reduction of fraud with no-box returns
• Increased consumer convenience with the growth of online shopping

Negative

• None.

Insights

Market Research Analyst

The expansion of Pitney Bowes' returns drop-off network in collaboration with PackageHub represents a strategic move to address the burgeoning issue of ecommerce returns. The integration of nearly 1,000 locations for no-box and no-label returns is a significant enhancement to the consumer return experience. This service innovation is poised to reduce logistical complexities and costs associated with returns—a pain point for both retailers and consumers. By leveraging the proximity of locations, with 50% of the US population within 10 miles of a new drop-off point, Pitney Bowes is capitalizing on the convenience factor that is increasingly valued in the post-pandemic retail landscape.

From a market perspective, the reduction of exceptions during processing and the potential decrease in returns fraud can lead to operational efficiencies and cost savings for retailers. This, in turn, could translate into a competitive advantage for Pitney Bowes as they offer a more streamlined returns process compared to traditional methods. Furthermore, by enhancing the customer experience through easier returns, Pitney Bowes is likely to see increased loyalty and repeat business from both retailers and consumers, which could positively impact their market share and revenue growth over time.

Supply Chain Management Expert

The no-label returns system using QR codes, as introduced by Pitney Bowes, is a forward-thinking solution that addresses a key inefficiency in the returns supply chain. By reducing exceptions—errors in return processing—by up to 30%, the system not only expedites the refund process for customers but also minimizes the handling and processing burden on retailers. This approach aligns with lean supply chain principles, focusing on waste reduction and process optimization.

Moreover, the no-box returns concept can potentially mitigate the environmental impact of returns by lessening the demand for packaging materials. This aspect of the initiative aligns with the growing consumer and corporate emphasis on sustainability. As the ecommerce sector continues to grow, such innovations in the returns process could set new industry standards, influencing other players to adopt similar environmentally-conscious practices. The long-term benefits could include not only cost savings but also an enhanced corporate image for Pitney Bowes and PackageHub, which is increasingly important in a market where consumers are more environmentally aware.

Financial Analyst

The announcement by Pitney Bowes to augment their returns service network is likely to have financial implications for the company and its stakeholders. By offering a no-cost returns option to retailers and consumers, Pitney Bowes is likely to attract a larger clientele base, which could lead to increased volumes of processed returns. This strategic partnership with PackageHub could also diversify the revenue streams of Pitney Bowes, as it leverages PackageHub's established presence in the retail shipping domain.

Investors should observe the operational cost savings from reduced returns processing exceptions and fraud prevention measures. These savings could improve the company's profit margins and result in a more favorable financial position. Additionally, the enhanced consumer experience and the potential for increased brand loyalty could drive long-term revenue growth. However, it is essential to monitor the execution of this expansion and the market's reception, as the costs associated with scaling up the network and maintaining service quality will be critical in determining the financial success of this initiative.

Fast-expanding network of locations across US now offers the convenient returns service at no additional cost, just in time for returns season; hundreds of additional locations launching in coming months.

STAMFORD, Conn.--(BUSINESS WIRE)-- Pitney Bowes (NYSE:PBI), a global shipping and mailing company that provides technology, logistics, and financial services, today announced along with PackageHub, the second-largest franchise system of retail shipping stores in the U.S., the launch of a returns drop-off network that will enable no-box and no-label returns at nearly 1,000 convenient locations, with hundreds more launching soon, across the country—at no additional cost to retailers or consumers. Ecommerce brands who already use Pitney Bowes returns service and its platform partners will immediately have access to the drop-off network, with no additional integration required. This launch augments the existing network of 30,000 postal locations where currently Pitney Bowes offers no-label returns.

~50% of US population is within 10 miles of a new drop-off network location, with hundreds of new locations launching in the coming months. (Graphic: Business Wire)

“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,” said Gregg Zegras, EVP and President, Global Ecommerce at Pitney Bowes. “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 US, making this the most comprehensive returns service, capable of lowering the cost of returns while simultaneously improving the consumer experience.”

“By aligning with Pitney Bowes, we are poised to deliver a premium returns experience to both merchants and consumers through PackageHub Returns, ensuring a mutually beneficial outcome,” said Brandon Gale, CEO of PackageHub. “The Pitney Bowes’ returns approach seamlessly complements our strategic vision, and we eagerly welcome them in the PackageHub family. We believe this partnership offers an incredible value-add to our ever-increasing network of PackageHub store owners.”

New returns drop-off network a win-win for retailers and consumers

• Reduced Exceptions during Processing
  No-label returns using a QR code have shown up to 30% reduction in exceptions versus packages labeled by consumers. Every exception can streamline the return processing costs for the retailer and expedite customer refunds.

• Reduction of Fraud
  No-box returns reduce the likelihood of incorrect or invalid items being returned—often a tactic employed by fraudsters. According to Pitney Bowes most recent BOXpoll retailer survey almost 40% of online retailers say that returns fraud is one of their top challenges.

• Increased consumer convenience
  With the growth of online shopping since the COVID pandemic, consumers increasingly see returns drop-off locations as a convenience, especially for the nearly one-third of consumers who do not have a place to securely leave packages at home for carrier pickup.

About Pitney Bowes

Pitney Bowes (NYSE:PBI) is a global shipping and mailing company that provides technology, logistics, and financial services to more than 90 percent of the Fortune 500. Small business, retail, enterprise, and government clients around the world rely on Pitney Bowes to reduce the complexity of sending mail and parcels. For the latest news, corporate announcements and financial results visit https://www.pitneybowes.com/us/newsroom.html. For additional information visit Pitney Bowes at www.pitneybowes.com.

About PackageHub Business Centers©

Established in 2019, PackageHub Business Centers has rapidly grown into the second-largest franchise system of retail shipping stores and business centers in the United States. Boasting an expansive network of nearly 1,000 locations nationwide and growing, PackageHub stands as a testament to innovation within non-traditional franchise models. Comprised of independent retail shipping store owners, the national store network is dedicated to delivering fast and friendly mail and parcel services, providing outstanding service and convenience in neighborhoods across America. For more information, visit www.PackageHub.net.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240103008525/en/

Marifer Rodriguez

Pitney Bowes

W 203 351 7416

M 203 940 3718

marifer.rodriguez@pb.com

Source: Pitney Bowes Inc.

FAQ

What is Pitney Bowes' (PBI) returns drop-off network?

Pitney Bowes has announced the launch of a returns drop-off network with PackageHub, offering no-box and no-label returns at nearly 1,000 locations across the US at no additional cost.

How many locations are expected in the coming months for the returns drop-off network?

Hundreds more locations are expected in the coming months for the returns drop-off network, benefiting retailers and consumers.

What are the benefits of the returns drop-off network for retailers and consumers?

The network is expected to reduce exceptions during processing, fraud, and increase consumer convenience.

How does the returns drop-off network reduce exceptions during processing?

No-label returns using QR code have shown up to 30% reduction in exceptions versus packages labeled by consumers, which can streamline the return processing costs for the retailer and expedite customer refunds.

How does the returns drop-off network reduce fraud?

No-box returns reduce the likelihood of incorrect or invalid items being returned, reducing returns fraud.

Why is the returns drop-off network beneficial for consumers?

With the growth of online shopping, consumers increasingly see returns drop-off locations as a convenience, especially for those who do not have a place to securely leave packages at home for carrier pickup.