Endicia simplifies USPS e-commerce returns payment

US e-commerce retailers are being offered a new service that will mean they can avoid paying pre-paid postage for customer return labels that aren’t used. Online postage specialist Endicia has launched a new Pay-on-Use Returns offering that means retailers pay for printed returns shipping labels only when they are used.

The company said previously, online sellers shipping with the US Postal Service pre-pay their postage when a customer prints out a shipping label, even if it is not subsequently used.

Those retailers have to monitor shipping label tracking numbers and eventually claim a refund on those that haven’t been used.

Endicia said its new service was the first of its kind to be offered by an electronic postage provider. Postage is not pre-paid, but deducted when printed labels are scanned on use by an online shopper returning an item via USPS.

Amine Khechfé, co-founder and general manager of California-based Endicia, said the solution will save e-railers time and money on packaging returns, while still allowing them to use USPS shipping services.

“Online sellers have been clamoring for a more efficient returns process – one that gives customers the convenience they deserve without damaging a business’ balance sheet,” he said.

Endicia, which has printed more than $11bn in postage since first partnering with the US Postal Service in 1987, said research shows that 95% of shoppers will repeat business after having a positive returns experience.

It said providing shoppers with pre-printed return labels in their original package, or an emailed label for use when they need, ensures a hassle-free returns process.

Eddie Khanbeigi, COO and general counsel of Kiyonna, a clothing retailer and Endicia client, welcomed the savings the new service would allow.

“As a plus-size clothing company with a thriving ecommerce business, our success relies heavily on giving customers all-around top-notch service,” he said.