Shiperoo: Difficult returns are a clear barrier to purchase for modern consumers
Fulfilment and returns management startup Shiperoo has announced that Australia Post has taken a 25% stake in the business as part of an new strategic agreement.
This investment showcases their shared commitment to making the process of returning purchases easier and more efficient, as well as aiding environmental sustainability.
According to last year’s Australia Post Inside Australian Online Shopping eCommerce Industry Report, consumers made online purchases worth AU$63.6 billion in 2023 (calendar year).
Shiperoo Founding Partner Nishan Wijemanne explained that the online shopping boom has given rise to exponential growth in returns which has become retail’s largest unaddressed issue.
“Returns are a retail pain point on a number of fronts. Difficult returns are a clear barrier to purchase for modern consumers, who often need to access a selection of similar items before deciding what will suit their needs,” he said.
“Shiperoo was born from the desire to turn the pipe dream of efficient, cost-effective returns management into a reality, utilising automated multi-channel fulfilment facilities that are powered by market-leading robotic technology and AI.
“This includes rapid fulfilment execution for same-day shipping readiness, seamless returns for consumers through Australia Post’s network, efficient returns processing for retailers, and the integration of managed returns into the circular economy through reCommerce opportunities.
“To achieve this, we have developed a returns process that’s designed to be an end-to-end solution – at the consumers’ end, we solve their logistical nightmare of sending back returned items, while for the retailer, we can expedite the categorisation, quality assessment and decision-making regarding restocking, refurbishing or recycling.
“Our facilities enhance inventory management to reduce the likelihood of overstock or understock situations and the result is a ‘white glove’ returns-management experience. We’re also helping minimise the impact of the overall impact of returns on retailers’ bottom line.”
Across all retail, the average rate for returns is 17%, but for fashion/apparel online purchases – which Australians spent AU$9.6 billion on in 2023 – the returns rate rises to 30% (or roughly one-in-three items bought).
Shiperoo, the brainchild of highly respected supply chain technology entrepreneurs Nishan Wijemanne and Rizan Mawzoon, is determined to revolutionise the retail returns sector. It has invested heavily (AU$30 million) in sophisticated AI-powered software and state-of-the-art automation to enhance operational efficiency for retailers as well as better customer experiences.
