Americans extend festive shipping surge with returns

More than a third of Americans will return gifts after the holidays, according to a new survey from FedEx. The Memphis-based integrator said yesterday that consumers are increasingly choosing to ship gifts back instead of dealing with the crowds at the mall.

The company polled more than 1,000 US residents this month, finding that 36% expect to return gifts this season, more than half (57% ) preferring to do so by shipping them back to the retailer rather than returning items to a retail outlet.

FedEx said this was a continuation of the online shopping trend that drove record-breaking volume in the FedEx Ground network over the past two months.

The shipping giant is expecting returns to online retailers sent via the FedEx Ground network surge more than 25% this year.

“Americans are increasingly streamlining their seasonal checklists thanks to the convenience of online shopping, a pattern that is now extending to the post-Christmas tradition of holiday returns,” said T. Michael Glenn, executive vice president of Market Development at FedEx.

“By managing these returns through FedEx, retailers can more effectively manage their inventory while shoppers keep the hassle to a minimum.”

FedEx returns

FedEx said it is making returns simple for shoppers and retailers with its return labels and residential pickup and drop-off services. The firm has more then 9,000 retail locations handling holiday returns this year, including more than 1,800 FedEx Office stores across the US.

Specially-trained staff at FedEx Office will help customers properly pack up unwanted gifts to ensure each arrives properly packaged, with the firm claiming prices for FedEx Ground delivery are up to 10% less than the competition at FedEx Office locations.

FedEx is also boasting its FedEx Ground service is faster to more locations than rival service UPS Ground, getting returned gifts back in the hands of the retailer quickly.

Kevin Price, vice president of finance for web retailer Trunk Club, said: “A seamless returns process is a feature our customers have come to expect from us, and something we know builds loyalty today and for the future. With the speed of FedEx Ground and simplicity of FedEx return labels, we can delight our customers while maximizing the value of our inventory.”

Survey

FedEx said more than two-fifths of online shoppers (43%) report being more likely to purchase something online when free return shipping is available.

Elsewhere in the FedEx survey, clothing appears to be the most often return gift, (45% of respondents), followed by electronics/gadgets and toys (both 8%).

Most gift-recipients will return unwanted items shortly after the holidays, 35% will have all gifts returned before New Year’s, while another 55% say the return process will be done before the end of January.

The FedEx survey was compiled with Ketchum Global Research & Analytics, who worked with ORC International to conduct a telephone omnibus survey of survey of 1,010 adults (503 men and 507 women 18 years of age and older, living in the continental United States).

Interviewing was completed on December 6 – 9, 2012. The sample is weighted to represent the U.S. population using data from the Current Population Survey (CPS) on age, gender, race, region, and education. The margin of error is +/-3.1 percent and results are reported at the 95 percent confidence level.

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