FedEx Corp. (NYSE: FDX) said Monday that it has expanded a program in which consumers can return merchandise without a box or shipping label to more than 10,000 locations, including 2,000 FedEx Office stores.
Customers wanting to complete an in-store return of online orders can request a QR code on their mobile phone that can be scanned at drop-off points. FedEx said it will also offer contactless drop boxes where goods can be returned without any person-to-person interaction.
Competitors Amazon.com Inc. (NASDAQ: AMZN) and UPS Inc. (NYSE: UPS) already offer merchandise returns without boxes and shipping labels.
Separately, a forecast published Monday by real estate services firm CBRE and returns technology provider Optoro said that 2023-2024 holiday returns could total as much as $82.1 billion. The figure is derived by taking the projected $273.7 billion in holiday e-commerce sales and applying a 30% returns rate, which is considered the high end of the range for online sales.
Optoro estimates that the cost of returns in the U.S. has increased to $149 billion, since 2018. According to CBRE and Optoro, the cost of processing returns equates to an average of 27% of the purchase, putting a significant dent in retailers’ margins.