]]>Download the 2025 Retail Returns Landscape reportBlogMark GellerThu, 02 Oct 2025 18:17:51 +0000https://happyreturns.com/resource/happy-returns-turns-105e1c37cf9b245f360f07ee55:5e22bc92f8b9515a766eff99:68dc4fd4e6220d5cfbec9d14This week we celebrated the tenth anniversary of the founding of Happy Returns.

For those of us who have been here for all or most of the journey, it's been fun to reflect on how far we’ve come. When we started the company in the fall of 2015, there were two ways to return online purchases: 1) take it to the retailer's physical store (if they had one, and if they accepted online returns); and 2) box it up, print a label, and take it to a carrier — and then wait a week or three, hoping to get your refund. We thought there should be a third way: drop off the items without a box or a label at a location close to you and get an instant refund, even for retailers who don't have stores.

Having created a similar service at the startup HauteLook.com for our online shoppers to return items to Nordstrom Rack stores, we knew shoppers loved returning this way. (70% adoption in three months!) Naturally, we thought by making customers happy and solving the biggest pain point of online shopping, we would help the online retailers increase sales and profits.

Not everyone was convinced. Many of the investors we pitched in early funding rounds passed, and many online retailers were, let's say, hesitant to make returns easier for their customers (for fear of increasing return rates). With the help of some key people who believed in us early on — notably, Greg Bettinelli who was then at Upfront Ventures and Tracy DiNunzio and Mariah Case, the founders of Tradesy and Eloquii, respectively — we got the service up and running.

Like all startups, we had our share of ups and downs. During the first year, David, our CEO and co-founder, would come to me every afternoon and say, "Are you ready for your daily kick in the gut?" and then share the latest rejection he had endured that day while pitching easy returns. We'd usually have a good laugh and then get right back at it. And when we launched Net Promoter Score surveys to the shoppers doing returns and saw that our NPS was an exceptionally high 95, we knew we were on the right track and we were confident the larger retailers would eventually come to agree.

Also, like all successful startups, we've had more than our share of good luck. There were two developments we had not counted on that were enormously beneficial for Happy Returns. The first was that, about eighteen months after we launched our service, Amazon launched a similar service for their shoppers, enabling online returns at Kohl’s stores. This strongly validated our premise (box-free in-person returns are the future) and encouraged other retailers to follow suit. The second was that Congress unexpectedly passed legislation declaring that all ecommerce transactions were subject to state and local sales tax, which removed the risk that our in-person returns would create that requirement only for retailers who used our service.

Finally, like many successful startups, we had a near-death experience, which for us, was Covid. Having to shutter every Return Bar® location in our then-700-location network. But we managed to navigate our way through it, eventually bringing the service back to life.

Needless to say, it's been very gratifying watching the company and the service we created become the industry standard for a process used by millions of people every day.

Today more than 87% of all online returns are done box-free, most with instant or near-instant refunds, and with consolidated shipping to streamline operations for retailers1. Just as gratifying has been watching and encouraging the growth of our team. We’ve been very fortunate to be joined on our journey by some wonderfully talented, dedicated, thoughtful, and kind human beings. Seeing them grow and become leaders who often set a new bar for execution continues to be one of the best parts of the job.

We're grateful to the leaders at PayPal who gave us the fuel to scale our service and grow our team, but it was only after joining UPS that we found the right long-term home. With their expertise, we’ve automated our hubs and raised operational efficiency to a new level. Today, we process nearly all returns the same day they arrive and deliver them back to retailers with time-in-transit comparable to standard ground returns — all with exceptionally low loss rates.

With this foundation, we're equipped to support some of the world's largest and most innovative retailers, helping them deliver faster refunds and a smoother experience to millions of shoppers.

Our mission is and has always been to make returns beautiful for shoppers, retailers, and the planet. Ten years in, Happy Returns sets the standard for online returns. It's been a great ride thus far. We're excited to see what the next ten years will bring.

Sources: Happy Returns internal data, 2025

Net Promoter Score (NPS): A customer loyalty metric that measures how likely customers are to recommend a company, product, or service to others. It is calculated by asking respondents to rate their likelihood on a scale from 0–10, then subtracting the percentage of detractors (0–6) from the percentage of promoters (9–10)

Mark Geller
Co-Founder

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According to the 2024 Consumer Returns in the Retail Industry Report by the National Retail Federation (NRF) and Happy Returns, retailers estimated that 16.9% of their annual sales would be returned in 2024. That's a projected $890 billion in returned merchandise industry-wide.

With the average cost of processing each return exceeding 21% of the order's value, speed is critical. The faster a retailer can resell returned goods, the more revenue and margin they keep. This is why Happy Returns architected its entire reverse logistics operation for speed.

In the transit phase alone—the part of the returns journey most retailers focus on—we move returns from shopper drop-off to delivery to the merchant's warehouse in as few as 3.59 days on average for daily shippers¹, and an average of just 6.4 days for all Happy Returns customers². That's on par with the speed of individual package returns, but with the added advantages retailers care about most: a better customer experience, reduced fraud risk, and the efficiency of consolidated bulk shipments.

Transit, however, is only one leg of the journey. To understand true returns speed, we need to take into account the full cycle of activities during the return, measured from the moment a shopper initiates a return to the moment the item is back on the shelf ready for resale.

Happy Returns offers unique advantages when it comes to efficiency on both sides of the transit phase, as illustrated in the table below: 

Returns reimagined: A full-lifecycle approach

A return begins with the shopper initiation phase, where convenience and instant refunds drive high opt-in rates and drop-offs one day sooner than individual package returns⁶.  

The second leg of a return is the transit phase, which is the time it takes to get a return from the point of drop-off (i.e., Return Bar® location) to the retailer, which Happy Returns does in as few as 3.59 days on average⁷. 

And finally, a return finishes with the restock phase, where tidy, palletized returns with a digital manifest help retailers put inventory back on shelves 34% faster than individual bags and boxes⁸.  

By looking at the full returns lifecycle, we'll show how acceleration at each stage of our returns process compounds to shorten the overall time it takes to restock items, delivering one of the fastest average restock speeds in the industry⁹.

About the Return Bar® experience

We operate the largest network of box-free return drop-off locations in the United States. With more than 8,000 locations nationwide, customers drop off their returns box-free and label-free — no printing, no packaging, and no waiting, with refunds and exchanges initiated at the time returns are dropped off. 
 
This approach is extremely popular: 86% of shoppers choose our hassle-free Return Bar® service when given the option and award our service with a 93 lifetime Net Promoter Score¹⁰.  

How does it work?

The shopper begins their return online in the retailer's return portal (often linked in their order confirmation email or on the retailer's website). They select the items they want to return and the reason for the return, choose "Drop off at a Return Bar® location" as their return method, and instantly receive a QR code—no need to print a label or find packaging.  With their unboxed items and QR code in hand, the shopper brings in their items to a Return Bar® location, where they are scanned to verify that the items being returned are the items that were purchased. Once the return is accepted, most refunds are initiated instantly.

How do we measure it?

The return clock starts when the shopper initiates their return online. We measure both the number of days on average that it takes for a shopper to drop-off their returns at a Return Bar® location and the number of days it takes a shopper to bring their return in for a traditional carrier return.  

Happy Returns requires less work from the shopper—no printing labels, packaging, and mailing—and because we offer instant refunds once returned items are verified at drop-off, customers complete the initiation phase one day faster than a typical individual package return.¹¹

About the transit phase

After items are dropped off at a Return Bar® location, they're consolidated along with returns from other Happy Returns merchants. Full boxes are shipped—often on the same day—to one of our regional Return Hubs, where they are sorted and palletized by retailer, ready for outbound bulk shipment.  

We measure the transit phase in three parts: inbound transit, hub sorting, and outbound transit. Together, these steps track returns from the moment they leave a Return Bar® location to the moment they arrive back at the retailer. For retailers who qualify for daily shipping, this entire phase averages just 3.59 days¹². For all customers including non-daily shippers, the average is still a fast 6.40 days¹³.

What we mean by daily shipping

Daily shipping is an option for high-volume retailers whose returns fill outbound shipments every day. For these qualified retailers, we ship all returns from our hubs to their warehouses daily, rather than waiting to build larger, less frequent shipments. This constant flow accelerates the entire reverse logistics process, getting goods back faster for restocking. 

A: Inbound transit: Speed at the hourly level

What do we mean by inbound transit?

The movement of consolidated returns from our Return Bar® locations to one of our three hubs located in California, Mississippi, and Pennsylvania.

How does it work?

The Return Bar® not only solves for customer satisfaction but also allows us to aggregate returned packages and route them intelligently from the very beginning.  

Individual returns are bagged and labeled for tracking and then combined with other returns from other retail brands into a single Happy Returns box. This way, the shipping box is quickly filled with returns and hits the road to our hubs efficiently without waiting.  

Another unique advantage is our integration within the UPS ecosystem, giving us priority access to the nation's largest package delivery company. This access includes same-day pickups, end-to-end visibility, and the use of bypass lanes to ensure returns arrive at our hubs by 6 a.m., which is early enough to complete processing before outbound trucks depart¹⁴. 

How do we measure it?

We track the time it takes for each shipment to travel from a Return Bar® location to one of our regional hubs. Thanks to the high volume of retailers and shoppers in our network—and the speed of our UPS-operated transportation—shipments reach our hubs in an average of 1.24 days¹⁵ for daily shippers. 

B: Hub sorting: Efficiency powered by robotics

What do we mean by hub sorting?

When returns arrive at our hubs, they're in consolidated return boxes—each box contains items from many different retailers. Before we can send anything back, we need to separate and then organize these items by retailer.  

How does it work?

Our team opens each box and places each return bag onto state-of-the-art Geek+ S20C sortation robots. These robots transport each item to its designated shipping gaylord for that specific retailer. Once enough items for a retailer have been collected, the gaylords are palletized for outbound shipping. Automation speeds up the work, reduces errors, and improves safety for our warehouse teams. 

How do we measure it?

We measure hub sorting as the time from each return bag’s arrival scan to the time stamp at tender, when the freight carrier departs our facility. We complete sorting of all inbound returns on the same day they arrive on 98% of days¹⁶. 

C: Outbound transit: Predictive, AI-powered logistics

What do we mean by outbound transit?

We use our knowledge of what is flowing through our network as well as historic volume trends to predictively set up shipments from our hubs to retailer warehouses.

How does it work?

Our hubs reduce pickup delays with system-triggered auto-bookings once volume thresholds are met. This process eliminates manual scheduling errors and balances shipment speed with cost per shipment.  

This predictive approach increases speed and accuracy with earlier trailer access, better carrier timing and route planning, and smoother daily warehouse operations. 

Additionally, speed in reverse logistics is only possible with smart geography. Our hubs are strategically located to optimize ground coverage. Each location—Valencia, CA (West), Southaven, MS (Central), and Shoemakersville, PA (East)—is purposefully located to balance scale, proximity to freight infrastructure, and our ability to grow with merchant demand. 

How do we measure it?

We track how quickly shipments leave our hubs and arrive back at retailer warehouses. For retailers who qualify for daily shipments, all returns are processed and shipped out the same day they arrive. Once outbound, 85% of all returns reach retailers within one to three days¹⁷. 

About the inventory restock phase

The faster retailers can get their items back into sellable inventory, the less the inventory holding cost. 

Once returns reach the retailer, the final step—restocking returned inventory—has historically been slow and disorganized. But not with Happy Returns.  

How does it work?

Happy Returns' ships bulk returns in bagged, labeled, and palletized shipments with a digital manifest. Warehouses know exactly what is coming and when each shipment will arrive, allowing them to organize receipt and processing to minimize returned inventory restocking time.  

 How do we measure it?

Inventory restock is the amount of time from when the returns arrive at the retailer's dock doors to when they're able to be resold. A comprehensive study completed in partnership with the UPS Customer Solutions team in 2025 concluded that Happy Returns consolidated returns allow retailers to restock inventory 34% faster than individual return packages¹⁸. 

Conclusion

By accelerating the full returns lifecycle—from initiation to transit to restock—we've redefined how the industry views consolidated returns. Merchants no longer have to trade speed for a better shopper experience—they can have both. 

Every hour, every day gained in the returns cycle means more inventory back on shelves, more customer satisfaction, and more margin protected. 

Citations 

1 Data based on Happy Returns daily shipper customers. Daily shipping with Happy Returns is an engagement option for high-volume retailers whose returns fill outbound shipments every day.

2 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

3 Daily shipping with Happy Returns is an engagement option for high-volume retailers whose returns fill outbound shipments every day.

4 Analysis completed by comparing 2025 internal Happy Returns data and other carriers, including Bleckmann, Canada Post EastPost, DHL, DHL eCommerce EasyPost, FedEx, FedEx EasyPost, Purolator, UPS, UPS EasyPost, UPS Mail Innovations EasyPost, and USPS. Data collected via the Happy Returns return portal utilized by Happy Returns customers.

5 Reported data, as written in SLA contracts, from Happy Returns retail partners to customer success teams. Common reported time frame is 2-3 days from return package arrival at retailer warehouse to inventory restocking. Happy Returns internal data, 2025.

6 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

7 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

8 A comprehensive study completed in partnership with the UPS Customer Solutions team in 2025 concluded that Happy Returns consolidated returns allow retailers to restock inventory 34% faster than individual return packages.

9 Analysis completed by comparing 2025 internal Happy Returns data and other carriers, including Bleckmann, Canada Post EastPost, DHL, DHL eCommerce EasyPost, FedEx, FedEx EasyPost, Purolator, UPS, UPS EasyPost, UPS Mail Innovations EasyPost, and USPS. Data collected via the Happy Returns return portal utilized by Happy Returns customers.

10 Net Promoter Score is a customer loyalty metric that measures how likely customers are to recommend a company, product, or service to others.

11 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

12 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

13 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

14 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

15 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

16 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

17 Source: Metrics based on large volume analysis of all Happy Returns retail partners. Happy Returns internal data, Q2 2025.

18 A comprehensive study completed in partnership with the UPS Customer Solutions team in 2025 concluded that Happy Returns consolidated returns allow retailers to restock inventory 34% faster than individual return packages.

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At Happy Returns, we take returns personally. And it's our mission to make returns seamless, secure, and flexible for our enterprise customers and their shoppers. That's why we’re excited to announce the Preferred Portal Partner Program, designed to give more ways for brands to connect shoppers to the Return Bar® experience. 

With three, top tier return portal integrations, retailers can now even more easily connect to our Return Bar® network, unlocking an incredible shopper experience, fraud prevention, and operational efficiency. 

Meet our Preferred Portal Partners 

Our three Preferred Portal Partners set the standard for what it means to be a strong returns partner, offering seamless compatibility with the Happy Returns network. Each partner delivers a turn-key Happy Returns integration and consistently applies best practices that drive Return Bar® adoption rates on par with those seen through our own software. 

To qualify as a Preferred Portal Partner, providers must: 

• Deliver a frictionless, fully integrated Happy Returns experience without added technical lift for merchants 

• Demonstrate consistently high adoption rates for the Return Bar® network, matching our network-wide benchmarks 

• Offer post-purchase notifications that meet or exceed industry-leading standards, ensuring shoppers have clear visibility into their return journey 

AfterShip Returns 

AfterShip Returns offers a complete, centralized post-purchase tool that aggregates returns, tracking, and notifications in one place. Its platform-agnostic architecture integrates seamlessly with leading eCommerce platforms and a wide range of commerce tech stacks, enabling merchants to customize returns workflows, optimize multi-warehouse routing, and localize experiences for merchants scaling internationally.   

"We're excited to strengthen our partnership with Happy Returns and expand no box, no label, consolidated returns to our merchants. The Happy Returns network not only enhances the shopper experience but also helps merchants significantly reduce return fraud through secure item validation at drop-off."

— Aasif Osmany, Vice President of Revenue - AfterShip 

AfterShip is known for: 

• Unified post-purchase platform that streamlines tracking, returns, shipping, protection, and more in one place. 

• Platform-agnostic with seamless eCommerce integrations, enabling omni-channel operations and supporting global scalability. 

• Purpose-built solution with advanced workflows and tools to help fast-moving brands deliver better customer experiences. 

Loop Returns 

Loop Returns is the preferred returns platform for Shopify retailers. It's built to drive customer retention through seamless exchanges and powerful automations. The platform offers advanced exchange workflows, customizable automation rules, and deep native integration. Platform features include SKU-level return logic, real-time refund triggers, and out-of-the-box analytics, all engineered to optimize retention and minimize support overhead. The Loop Returns platform also includes the option for Checkout+, their consumer-paid returns functionality that helps merchants eliminate or offset return costs while boosting profits. Checkout+ unlocks free returns and package protection for shoppers for a small added fee. With advanced exchange logic, customizable rules engines, and built-in communications tools, Loop's mission is to increase customer lifetime value on its fully integrated platform. 

"At Loop, we're focused on helping merchants turn returns into retention—and Happy Returns fits perfectly into that vision. Their Return Bar® network brings a frictionless experience that today’s customers expect."

— Kristen Kelly, SVP of Product and Design - Loop 

Loop Returns is known for: 

• Serving 5,000+ of Shopify's largest and fastest growing brands 

• Advanced exchange workflows and automation rules 

• Checkout+ feature option for free returns and package protection 

parcelLab 

parcelLab is a customizable post-purchase experience platform that provides custom-branded returns experiences, dynamic messaging workflows, and flexible logic control. The platform supports API-driven integrations with any e-commerce stack and enables real-time tracking and cross-border returns orchestration. They focus on improving communication, streamlining operations, and providing data-driven insights to increase customer satisfaction and loyalty. 

"parcelLab's strength is owning the post-purchase experience, and Happy Returns perfectly complements that by owning the in-person return moment. Together, we're closing the gap on customer satisfaction."

— Julian Krenge, Founder and CPO - parcelLab 

 parcelLab is known for: 

• Highly customizable returns portal 

• Built-in post-purchase messaging tools 

• Ability to create AI-driven personalized experiences to keep customers engaged 

What retailers gain by using the Return Bar® network 

Regardless of which returns portal you use, integrating with the Happy Returns network delivers a consistently superior return experience. We focus on providing outstanding shopper experience patent-pending fraud protection, and exceptional operational efficiency.  

What do we mean when we say we are obsessed with shopper satisfaction?  

We mean: 

• 93 net promoter score (NPS)* 

• 86% shopper adoption** 

• Instantly-initiated refunds to reduce friction and increase loyalty 

How does no box, no label returns at the Return Bar® network defend against retail return fraud? 

Box-free drop-off at Return Bar® locations eliminates common types of mail return fraud, like empty box scams and barcode tampering. When shoppers hand over their items in person, the associate scans each product's barcode to confirm what’s being returned—making it nearly impossible to fake or manipulate the return. 

What does our network's operational efficiency do for your business? 

Our operational efficiency reduces friction for both you and your customers. Shoppers receive instantly-initiated refunds at the point of drop-off—eliminating the "Where's my refund?" service inquiries that drive up support costs. On the back end, returns arrive at your warehouse or 3PL in bulk, complete with a digital manifest to streamline intake and accelerate restocking. Fewer service contacts, faster processing—more time and margin back to your business. 

Unlock the benefits of the Return Bar® Network in three flexible ways 

We meet merchants wherever they are by supporting three integration paths to connect with the Happy Returns network: 

• Partner portals – Seamlessly integrate through our Preferred Portal Partner Program, including AfterShip Returns, Loop Returns, and parcelLab. 

• Your portal – Connect using your existing custom-built return portal, supported by our QR Code Generator API. 

• Our portal – Use the fully featured Happy Returns portal, built and maintained by our team. 

No matter which path you choose, every integration unlocks the same powerful capabilities: seamless, label-free drop-offs at the Return Bar® network that delight shoppers, reduce fraud, and save your team time. 

Ready to get started? 

If you're a retailer looking for flexibility in portal choice or how you connect to the Return Bar® network—and a return experience your customers will love—then explore our preferred partners and see how easy it is to unlock the Happy Returns network with the software and tools you're already using. 

Citations 

* Net Promoter Score (NPS) is a customer loyalty metric developed by Bain & Company and Satmetrix, and widely used to measure customer satisfaction. It is calculated by asking customers, “How likely are you to recommend [company/product] to a friend or colleague?” on a scale of 0–10. Respondents are grouped into Promoters (9–10), Passives (7–8), and Detractors (0–6). The NPS is then determined by subtracting the percentage of Detractors from the percentage of Promoters. Happy Returns’ NPS score of 93 was collected and reported through Delighted, a customer experience platform that specializes in survey distribution and feedback measurement. 

** Happy Returns Internal Operational Data, 2025 

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• Retail return fraud is on the rise, with 93% of retailers reporting that fraud is a significant issue for their business.

• There are seven types of retail return fraud, including empty box returns, price switching, label tampering, and more.

• Retailers are fighting back with proven fraud prevention tactics like item verification at drop-off, tamper-proof labels, and in-store returns processing.

• Our Return Bar® service helps prevent fraud by verifying items at the point of return, stopping bad actors early.

The convenience and market opportunity of e-commerce shopping has come as a boon to the retail industry. We can order what we need, when we need it, and it generally shows up on our doorsteps in a reasonable amount of time. 

But this convenience has also come at a cost: According to the 2024 Consumer Returns in the Retail Industry report conducted jointly by the National Retail Federation and Happy Returns, retailers report an increase in explicitly fraudulent returns behavior with 93% of merchants reporting that retail fraud and other exploitive behavior is a significant issue for their business. 

In response to this macro trend, almost all retailers surveyed (99%) now employ one or more tactics to reduce return fraud, with new techniques, technology, and targeted approaches coming online every year. 

So, what exactly do we mean by 'fraud', and what types of retail return fraud should you be watching out for?

Retail return fraud occurs when a customer purposefully exploits a retailer's return process. The person engaging in this fraudulent behavior may have a few goals in mind—getting a refund, receiving a discount on a high value item, or in the case of an organized scam, making a profit on stolen goods. But at its core, the goal of return fraud is to obtain something without paying what is owed to the retailer.     

True fraud, a criminal act defined by the deliberate intention to deceive and gain, is often conflated with returns policy abuse as well as costly, but normal, shopping behavior. While still expensive and cumbersome for the retailer, the reason for someone engaging in returns abuse or costly shopping behavior is more about negligence, ignorance, or recklessness, rather than calculated dishonesty.  

Two examples of common behaviors that fall under the category of returns abuse or costly behavior include: 

Returns Abuse: Wardrobing

This type of returns abuse is when someone purchases an item for short-term use and returns it in used condition looking for a full refund. 

Costly Behavior: Bracketing 

While neither fraud nor abuse, this type of costly behavior is when a customer purchases multiple products with the intention of sending some or most of them back. Retailers shoulder a costly burden when a shopper brackets their purchases, but this behavior is often with the intention of, for example, trying on different sizes or testing different fabrics. It is considered normal shopping behavior when it’s within the bounds of the retailer’s returns policy and time frame. 

Fraud is a major business challenge. 

In general, younger generations are more likely to engage in bad returns behavior, but it’s truly generation-agnostic. The rise in retail returns fraud is happening across the board, with all types and with all shopper demographics. 

Those looking to defraud retailers by taking advantage of the returns process often rely on auto-refund systems because the customer will receive their refund before the retailer has had time to inspect the package. This type of returns policy is optimized for customer experience and to encourage customer loyalty with the ease, speed, and convenience of a quick refund, but it can also leave the retailer open to the kind of return fraud they would like to prevent.  

Person-to-person drop-off, visual verification of items, no-print returns (when a return label is not provided to the customer to print at home, compelling them to bring their item to a drop-off location), and barcode scanning all ensure that the only person managing the return is the store associate at the drop-off location. This approach can detect and deter fraud before it becomes a costly problem. 

Here are the seven types of retail return fraud that affect retailers today: 

1. Fraud Type: Empty Box Returns 

   How It Works:
   A consumer requests a refund for goods purchased and ships an empty box back to the retailer while keeping the merchandise. 55% of retailers reported an increase in empty box returns over the last year.
   

2. Fraud Type: Box of Rocks 

   How It Works:
   To simulate the return of their product, a consumer will return the box with a worthless filler that matches the product's weight. 59% of retailers report an increase in this type of fraud in the last year, and it's particularly insidious because it incurs financial losses for the retailer through increased costs from the refund they issued, and the costs associated with restocking after receiving unsellable merchandise.  
   

3. Fraud Type: Price Switching 

   How It Works:
   In the case of a price switch, a consumer will return a different item from the same retailer of lower value.  
   

4. Fraud Type: Decoy Returns 

   How It Works:
   Counterfeiting isn't a new form of fraud, but its impact compounds when a buyer returns a counterfeited item in place of the original. This type of fraud can be achieved through tag-swapping or replacing the tag of similar-looking, fake apparel with the original tag. 
   

5. Fraud Type: Overstated Quantity Returns 

   How It Works:
   When a shopper purchases more than one item from a retailer and then claims to return more items than they actually ship back in their return package, they are overstating the quantity of their returns.  
   

6. Fraud Type: Label Tampering 

   How It Works:
   A shopper edits the shipping address on the return label provided to them by the retailer with a PDF editing software before shipping their returns package. The barcode of the legitimate returns label (with the new address) is then scanned, indicating to the retailer that the return has been shipped, and a refund process is initiated, all while the package is on its way to an undisclosed destination. The loss for the retailer is compounded by the shipping cost, the unnecessary refund, the lost item, and the effect on product inventory.  
   

7. Fraud Type: No-Proof Returns 

   How It Works:
   This type of fraud takes advantage of Buy Online, Return In-Store, or B.O.R.I.S, returns policies. An in-store return of an item purchased online without an order identification number, receipt, or order confirmation puts staff in a tough spot. Is it an innocent error on the part of the customer or are they looking for a refund on an item that they themselves never purchased?  

So, how do we fix it? How do we mitigate retail return fraud? 

It starts at the point of return. To catch fraud before a package makes it back to the retailer, we have to be able to see inside of the returns box before it’s sealed and sent. Enter: the Happy Returns Return Bar®. 

At more than 8,000 locations nationwide (including more than 5,000 The UPS Store® retail locations), Happy Returns verifies the shopper and the items early in the returns process. With validation, shoppers can bring their returns without a box and without a label to a participating location, and an associate will scan and verify the product at the Return Bar®.  

The early in-person interaction between the shopper and the Return Bar® provides the necessary technical infrastructure to catch and prevent retail return fraud as well as the social pressure to curtail the motivation to game the system.  

The cost of retail returns fraud is too high to ignore. 

The cost of ignoring retail return fraud is simply too high. As fraud tactics grow more sophisticated and consumer expectations for seamless returns remain high, retailers must strike a careful balance between convenience and control. Every fraudulent return erodes profit margins, disrupts operations, and can even increase the cost of goods for the customer as increased operational costs due to fraud get passed on to the consumer. But with smarter policies, better verification technology, and early intervention approaches like the Happy Returns Return Bar® locations, retailers can find and prevent fraud before a package makes it back to their warehouse. Investing in proactive fraud prevention isn't just damage control—it's future-proofing your business. 

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Thanks to thoughtful planning, three newly automated Return Hubs, and our extensive Return Bar® network of nearly 8,000 locations, we didn't just meet the demand — we set new benchmarks for speed, accuracy, and efficiency. 

Here's a look at what worked and where we're headed next. 

Delivering at scale: Speed, accuracy, and seamless experiences 

During the 2024 peak season, our network demonstrated its strength and ability to flex.  

1. Fraud prevention from the start: Our patent-pending item verification process ensures associates complete a guided, step-by-step check to ensure the right items are being returned, reducing errors and making it harder for fraud to occur. Additionally, our process links each returned item to its bag and shipping box, ensuring accurate handling and maintaining a detailed record of its journey, even at peak volumes. 

2. Automation with human oversight: Our Return Hubs leveraged automation to handle record-breaking volumes, but exceptions required careful human management. By balancing automation with real-time tools for managing unique cases, we met our service level agreements even during spikes in complex returns. This combination of automation and oversight ensured exceptions were resolved without creating bottlenecks. 

3. Visibility at every step: Thanks to diligent return tracking and integration with UPS, we monitor returns from the moment they're initiated online, through drop-off, transit, and processing at our Return Hubs, all the way back to the retailer. This end-to-end visibility ensures we can catch potential delays, resolve issues quickly, and provide retailers with real-time updates that improve outcomes. 

A seamless experience for shoppers, too

Retailers weren't the only ones who benefited from a strong peak season — shoppers did, too. Our expansive network and operational efficiencies helped ensure a smooth, hassle-free return process, even at the busiest time of the year. 

1. Convenience at scale: With nearly 8,000 Return Bar locations — including key partnerships with The UPS Store®, Staples, and Ulta Beauty — our expansive network processed millions of returns during peak season. By distributing volume across thousands of locations, we enabled shoppers to drop off returns quickly and easily, without overwhelming any single location. 

2. Operational excellence behind the scenes: To keep Return Bars running smoothly, we automated key processes like shipping replenishment supplies. Stores never need to track supplies or place orders — our system ensures shipping boxes and bags arrive when needed. In-app notifications and alerts help locations stay prepared, ensuring a consistent experience for shoppers and partners alike. 

The results: Big wins from innovation

Our post-peak analysis reinforced a key belief: strategic improvements can deliver significant results.

1. 40% faster return processing: Our automated hubs unpacked, sorted, and shipped our consolidated returns to retailers 40% faster than in previous years, ensuring retailers could restock inventory more quickly.¹ 

2. Unprecedented accuracy: Robot-assisted item sortation, supported by system-enabled controls designed to minimize errors and ensure consistency, has virtually eliminated loss in our Return Hubs and set a new performance standard. 

By continuing to refine our processes, we're positioning ourselves to scale even further with more speed, security, and service quality. 

Where we're headed: The path to our fastest returns yet

This peak season confirmed that our approach works — and it highlighted new ways to raise the bar even higher.

We're exploring new types of robotic automation to handle higher volumes more efficiently and reduce the physical strain on warehouse workers — including the potential use of robotic systems for unloading trucks to further streamline operations. By continuing to invest in automation, we're reinforcing the speed, accuracy, and scalability that define our returns network.

2024's peak season showed what's possible when smart processes and strong partnerships come together. We're proud of how we performed — and even more excited about what's next.

For retailers, this means quicker restocks and fewer errors. For shoppers, it means simple, hassle-free returns no matter the season. 

The takeaway? When peak season arrives again, we’ll be ready to deliver.  

¹Happy Returns internal data, based on Return Hub performance from November 2024 through January 2025. 

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]]>Download the 2024 Consumer Returns in the Retail Industry Report 2024 Consumer Returns in the Retail Industry</span#x3E;Case studiesGuest UserWed, 18 Dec 2024 18:00:00 +0000https://happyreturns.com/resource/lands-end-case-study5e1c37cf9b245f360f07ee55:5e22bc92f8b9515a766eff99:67574b6457b55c142814a907

Challenge

Lands' End needed to optimize its returns and sought to implement an efficient, streamlined reverse logistics process.

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Solution

The retailer chose Happy Returns for a comprehensive solution including returns software, sophisticated reverse logistics, and access to nearly 8,000 box-free, label-free Return Bar® locations.

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Benefits

• 84% of Lands' End shoppers choose Return Bar ® locations to return items¹

• Substantial operational savings¹

• Increase in returns for merchandise credit to retain revenue¹

• Significant decrease in reverse logistics labor costs by removing manual item verification at their warehouse¹

Learn More

The Challenge

Lands' End offers its products online, through third-party distribution channels, and in company-owned stores. In the face of a competitive ecommerce landscape and legacy systems, the company sought to modernize its returns process.

Lands' End faced several challenges:

• Paper slips: The manual returns process relied on a paper slip in each mailed ecommerce order. Customers who needed to return a product had to fill out the slip, repackage the item, and mail it back.

• Slow return processing: The previous process for initiating exchanges and returns could take up to 10 days, leading to customer calls asking, "where's my refund?"

• Shopper habits: The typical Lands' End customer has nearly two decades of brand loyalty. While this is a huge benefit to the retailer, it also made it challenging to encourage customers to embrace change.

"Our return system was not as efficient as it could have been," says Anders Ahlberg, product manager of ecommerce and returns at Lands' End. "We wanted to provide customers with a better experience while also enforcing our return rules."

The Solution

Lands' End partnered with Happy Returns, a UPS company, to enhance its returns process and tackle those key challenges:

• Convenient in-person returns: With the Return Bar® network, Lands' End shoppers now enjoy a hassle-free, package-free return experience. They can easily drop off items at nearly 8,000 Return Bar® locations, including The UPS Store® retail locations, Ulta Beauty, and Staples. This streamlined process eliminates the need for paper slips and traditional mail returns, saving time and money through Happy Returns consolidated reverse logistics.

• Improved shopper transparency: Happy Returns rolled out an end-to-end shopper communications strategy for Lands' End, ensuring that customers receive immediate email confirmations when they make returns at a Return Bar® location. Refunds are then typically processed within 24 hours, reducing friction, and boosting shopper satisfaction. To help Lands' End's loyal customers transition smoothly, Happy Returns also developed box inserts explaining the new process.

• Increased revenue retention: When returning items, Lands' End customers now have the ability to choose between merchandise credit (with waived fees) or a refund to original payment method (with a $6.95 processing fee). Store credit gives shoppers the option to engage with the brand and shop for something new, while Lands' End retains the revenue.

• Enhanced efficiency: Happy Returns is driving significant operational improvements for Lands' End. Its robust fraud prevention system streamlines the returns process by quickly validating and verifying items. Consolidating returns and providing advanced shipping notices enables faster restocking and better labor planning. And, as a leader in reverse logistics automation, Happy Returns brings the power of sortation robots and advanced analytics to Lands' End, delivering greater speed and accuracy across their operations.

"A key differentiator was Happy Returns' network of Return Bar® locations. Most of our customers are within 10 miles of one of the drop-off points. We have a lot of rural customers as well, so this was critical for us."

—Anders Ahlberg, Product Manager of Ecommerce and Returns, Lands' End

Results

By partnering with Happy Returns, Lands' End has transformed its returns process into a smoother, more seamless experience that benefits both customers and employees. "It's faster, and the returns process flows much more efficiently," says Ahlberg.

Recent Lands' End surveys reveal that a customer-friendly returns policy, offering peace of mind and simplicity, is a top priority for shoppers. This enhanced process has driven their Net Promoter Score (NPS) to 83²—over 77% higher than the industry average.³

Lands' End sees Happy Returns as a strategic logistics partner and is eager to continue working together. With more data, they aim to further refine their returns process, retain even more revenue, improve visibility, and achieve greater warehouse efficiencies.

"Our average customer tenure is almost 20 years. We've achieved that by being laser-focused on taking care of our customers. Delivering a better return experience is an integral part of that."

— Anders Ahlberg, Product Manager of Ecommerce and Returns, Lands' End

The Benefits

Higher Customer Satisfaction

84% of Lands' End shoppers now choose the Return Bar® experience for its ease and convenience.² Even long-time customers are excited about the new process. The Happy Returns box insert that explains the updated process has become the most scanned QR code in Lands' End history, reflecting their enthusiasm to use the Return Bar® option.

Reduced Operational Costs

Happy Returns' consolidated shipping with advanced shipping notices have already resulted in substantial savings for Lands' End.

More Retained Revenue

In the first year, Lands' End shoppers have significantly increased the rate at which they choose to receive a merchandise credit during a return. This shift has helped Lands' End retain substantial revenue through store credit promotions via the Happy Returns portal. "This has been a real bright spot for us," says Ahlberg.

Superior Fraud Protection

Happy Returns' patent-pending item scanning and verification has helped mitigate fraud and reduce reverse logistics costs by eliminating manual processes of verifying returns. This efficiency has also improved turnaround times at Lands' End's three Wisconsin-based warehouses.

For more

If you'd like to know more about Lands' End's success with Happy Returns and how the process can deliver similar results for your brand, please reach out for a free demo.

At a glance

Customer: Lands' End

Category: Casual apparel, footwear, accessories, and home products

Employees: 5,000

Sources:

¹Customer Gauge, 2024

²Delighted, November 2024. The Net Promoter Score (NPS) is calculated by asking customers a single question: "How likely is it that you would recommend [Company/Product/Service] to a friend or colleague?" Respondents provide a rating on a scale of 0 to 10. Based on their responses, customers are categorized into three groups:

• Promoters (9-10): Loyal enthusiasts who will keep buying and refer others, fueling growth.

• Passives (7-8): Satisfied but unenthusiastic customers who are vulnerable to competitive offerings.

• Detractors (0-6): Unhappy customers who can damage your brand through negative word-of-mouth.

The NPS is then calculated using the formula: NPS = % of Promoters −% of Detractors. The score ranges from -100 to +100. A positive score generally indicates a good level of customer satisfaction, with higher scores being better.

³Lands' End Data, November 2024.

Want to learn more?

That's why we've built a system that helps ensure every return makes it where it needs to go, quickly and accurately. Our technology is designed to make returns easier and more secure, helping retailers like you stay ahead.

Plus, it's not just about cutting down on fraud. Our solution helps boost your bottom line by reducing costly issues like lost inventory and customer support time. Whether you're an SMB or a large enterprise, Happy Returns scales with your business, keeping operations efficient and your customers happy.

Let's take a look at how it all works and what steps you can take next.

1. Catching fraud right at the start of the return process

Mitigating fraud at the top of the returns funnel eliminates the chain reaction of cost and manual time spent correcting fraud.

Happy Returns starts protecting your operations the moment a return is initiated. Through our Return & Exchange Portal, we implement stringent criteria that prevent suspicious returns from entering your supply chain.

We automatically block or flag high-risk returns, like those from known fraudsters or instant refunds on expensive items, for a closer look.

We are constantly analyzing patterns and trends to understand the signs of fraud and continue to evolve our response. This proactive approach helps limit fraudulent returns before they happen.

Our 2023 Returns Happen Study shows that 99% of retailers view returns fraud as a significant issue, with 69% calling it a very significant problem. Yet, only 51% incorporate fraud protection into their returns processes. 

2. Patent-pending verification at Return Bar® locations

Since box-free returns are done in person and the items are visible at drop-off, it helps prevent obvious fraud—like returning a box of rocks instead of shoes. Shoppers are also less likely to return damaged or heavily worn items when handing them directly to an actual person.

What makes us unique? We go the extra mile to make sure every return is correct, and we do it in two smart ways. For the roughly 70% of items with barcodes, each item is scanned at the store or Return Bar®. For items without barcodes—because the item never had one or the shopper left the polybag at home—Happy Returns' patent-pending system requires the store associate to identify items by selecting them from a group of images of other related products sold by that retailer.

These methods enable Happy Returns to avoid over-crediting returns for items that are not present or different from those originally purchased.

3. Enhanced tracking to prevent inventory loss

Inventory loss during the return process is a common challenge, but Happy Returns addresses this with meticulous tracking.

From the moment a returned item reaches the Return Bar®, it's carefully scanned and tracked at every step. We scan the item itself, then scan it again when it's bagged, and further scan the larger box it's placed into, linking the item and box together in our system. This process continues as the box is shipped to a Return Hub, moved through our warehouse, palletized, loaded onto a truck, and finally dropped off at your warehouse. Every detail is covered.

This detailed tracking process minimizes the risk of lost inventory and helps ensure that every item is moving through our process as quickly as possible.

4. Automation and accuracy at Return Hubs

At our Return Hubs, sortation robots and advanced processing tools further enhance security and help ensure that returns are handled with precision.

Our system scans the bagged returns at every touchpoint, allowing for real-time monitoring of quality and efficiency, which helps us quickly address any vulnerabilities that could lead to loss.

5. Double-checking every pallet before it ships out

Before returns are shipped back to your facility, we verify that all items are correctly assigned to their respective shipments. This software-driven process minimizes the risk of misrouted or lost inventory, ensuring that every item is securely returned to your warehouse. For instance, if a box makes it on the wrong retailer’s pallet, our system sends an alert before it has a chance to leave the Return Hub.

6. Our team is always on the lookout for fraud and loss

It's not just about tech—we've got dedicated teams who are always keeping an eye on fraud and finding new ways to stop inventory loss.

• Our Loss & Fraud Team actively investigates suspicious activity and spearheads initiatives to further reduce risks.

• The Return Bar® Management Team collaborates with drop-off location partners to maintain high standards and investigate any potential issues.

• Our Hub Quality Team closely monitors KPIs and conducts audits in our warehouses to ensure that every step of the process is performing at a high level.

Spotting risk early:
How we helped prevent partner loss

Our system flagged a sudden spike in returns without bag IDs, which prompted us to investigate. Upon contacting the locations, we discovered that a partner-wide scanner replacement project had unintentionally disrupted the process, affecting not just Happy Returns but their entire operation. Thanks to our early detection, we were able to collaborate with the partner to start resolving the scanner issue within a week.

7. Comprehensive reporting for swift issue resolution

Our innovative software enables proactive and reactive measures to address any issues that arise, which include:

• Exception reporting quickly flags operational problems at Return Bars® and Return Hubs

• Loss reporting classifies shrinkage by process step, guiding ongoing improvements.

• Fraud reporting highlights unusual shopper activity, allowing us to block fraudulent emails and conduct thorough audits.

Help safeguard your business and elevate your returns experience

At Happy Returns, we're committed to helping enterprise retailers reduce return fraud and prevent inventory loss through our comprehensive, tech-driven solutions. By continuously improving our processes, we empower retailers to offer instant refunds and exchanges at drop-off, which drives adoption and customer satisfaction.

As we look to the future, we're excited to implement RFID technology in 2025, enhancing our ability to track and manage returns with even greater precision. Our partnership with UPS strengthens our capacity to monitor boxes in transit, ensuring that our network remains secure and dependable every step of the way.

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]]>Download Robotic Automation in Return Hubs White PaperCase studiesGuest UserThu, 22 Aug 2024 16:36:00 +0000https://happyreturns.com/resource/nogin-case-study5e1c37cf9b245f360f07ee55:5e22bc92f8b9515a766eff99:6674afc7c5d877295ec41757

Challenge

Nogin is the leading end-to-end outsource e-commerce solution, delivering cutting-edge technology, talent, and tactics for brand leaders that need to optimize operations, maximize growth and reduce expenses, including returns costs. 

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Solution

The company turned to Happy Returns to streamline returns and exchanges—enabling Nogin's clients to save $1 million in the first year from revenue retention and reduced customer service volumes. 

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Benefits

• $1 million in overall savings in year one 

• Decreased customer service contacts  

• Greater customer satisfaction and loyalty 

• Patent-pending fraud mitigation at drop-off 

Learn More

Nogin is the leader in Commerce-as-a-Service, offering a complete, outsourced e-commerce solution that combines cutting-edge technology, specialized talent, and strategic tactics for D2C and B2B brands. Trusted by major brands like Bebe, Hurley, Justice, and Scotch & Soda, Nogin manages all facets of e-commerce operations. 

Central to Nogin's offering is its Intelligent Commerce technology, which enhances Shopify Plus and best-in-class apps with real-time data extraction, transforming raw data into actionable insights. These insights enable businesses to anticipate market trends, optimize inventory, and engage customers more effectively. 

Nogin also fulfills essential staffing and infrastructure needs, providing experts in key areas like store operations, performance marketing, retention, CRO, creative, customer service, and more. This allows brands to scale operations with less risk, reduce overhead, and improve ROI efficiently - all with zero upfront costs. 

The Challenge

Returns and reverse logistics is a key pain point that Nogin aims to optimize. According to the National Retail Federation, the average return rate today is 14.5%. "For women's apparel, the rate is even higher," says Anh Vu-Lieberman, SVP of CRM, SEO and Personalization at Nogin. "For denim, it’s 23% to 25%; dresses, it’s 30% to 40%. And for the highest-priced dresses, the figure can reach 50% to 60%. That has an enormous impact." 

The Opportunity

Studies show that customers are more loyal to stores that offer convenient, in-person returns. Approximately 90%¹ of customers avoid retailers that only offer mail-in returns, and those customers are less likely to buy from a retailer after a bad return experience. 

Nogin came to Happy Returns to provide an easier, faster way to manage its customers' returns operations. As a leader in enterprise apparel and footwear returns, Happy Returns provides Nogin and its clients fast and easy returns at its nearly 10,000 nationwide Return Bar locations, including The UPS Store®, Ulta Beauty, Petco and Staples. 

“Happy Returns streamlines the process, making it incredibly easy and hassle-free for our brands and their customers—enhancing satisfaction and loyalty.”
— Anh Vu-Lieberman, SVP of CRM, SEO and Personalization, Nogin

The Solution

With Happy Returns, Nogin seamlessly integrated its returns process across multiple brands, enabling their clients to enjoy a simplified returns process with: 

• box-free, label-free return drop-off and instantly-initiated refunds and exchanges at nearly 10,000 locations, including 5,000 The UPS Store® retail locations  

• patent-pending fraud detection and prevention at drop-off, and  

• advanced data and analytics in a merchant dashboard.   

To-date, approximately 81% of Nogin clients' shoppers choose to get QR codes online and return items at a Return Bar® location vs. using a traditional mail option. 

“We’ve saved nearly $1 million for our clients in the first year, thanks to revenue retention via exchanges and $500,000 in reduced customer service costs.”
— Anh Vu-Lieberman, SVP of CRM, SEO and Personalization, Nogin

Happy Returns' ability to verify returns and instantly initiate refunds greatly reduced those 'Where is my refund?' calls that are time-consuming for retailers. Additional benefits include converting more returns into revenue-retaining exchanges through Happy Returns' Return & Exchange Portal.

The Benefits

Increased Revenue and Decreased Customer Support Costs

Happy returns helped Nogin convert more returns into exchanges and reduce customer service contact volume. This resulted in $500K in customer service savings, and nearly $1M in total savings within the first year after launch.

More satisfied customers

Handling returns in-person at Happy Returns' nearly 10,000 Return Bar locations and instantly initiating refunds fosters greater customer satisfaction for Nogin's portfolio clients, contributing to increased loyalty and sales and an average Net Promoter Score of 82.²

Patent-pending fraud mitigation at drop-off

Every returned item dropped off at a Return Bar® location is scanned and verified to ensure it matches the return request, helping mitigate return fraud.

For more

If you'd like to know more about Nogin's success with Happy Returns and how the process can deliver similar results for your brand, please reach out for a free demo.

At a glance

Customer: Nogin

Category: Commerce-as-a-Service

Employees: 100-500

Ecommerce: Headless and works with Shopify Plus platform

ERP solution: Custom

Warehouse or Various: 3PL solution

Sources:

¹TRC, commissioned by Happy Returns, September 2023. An electronic survey conducted by TRC via anonymous panel through Forsta across 2,000 U.S. consumers of 18+ age fielded in mid-August 2023. (n=2000). 

²Source: Happy Returns internal data, 2024.  

Want to learn more?

Seamless integration with Happy Returns    

Our alliance with Loop has strengthened significantly over the past couple of years. Loop's deep integration with Shopify makes it an ideal partner for us, especially as we aim to simplify the return process for those retailers. This synergy has enabled a smooth, hassle-free Return Bar® service for retailers like Rothy’s, Allbirds, Princess Polly, and Figs.

Loop's returns engine is backed by data from tens of millions of returns and a team committed to optimizing return operations to protect retailers' bottom lines. With over seven years of innovation in post-purchase software, Loop is focused on the critical and growing problems that merchants face in this space. Their platform is known for its ease of use, its customizable rules engine, and its ability to help merchants retain revenue and drive repeat purchases.

“As part of UPS, we’re focused on serving the largest enterprise merchants. We’ve always been multi-platform and want to offer retailers the greatest choice in how they manage their returns. While we’ve collaborated with a network of partners to serve the Shopify ecosystem, Loop has proven to be an exceptional partner throughout our long-standing relationship. Therefore, we are pleased to recommend Loop as our preferred portal partner for Shopify,” said David Sobie, CEO of Happy Returns. “Our partnership with Loop exemplifies how we adapt and enhance the retail experience across different scales of business, thanks to a seamless integration between our two solutions.”

The bottom line

Happy Returns is dedicated to offering flexibility and choice, delivering solutions that exceed the expectations of today's retailers and shoppers, whether they operate on a small scale or within large enterprise frameworks. Our ongoing partnerships, including with Loop, reinforce this commitment.

Jonathan Poma, CEO of Loop, added, “We are thrilled to deepen our relationship with Happy Returns. This partnership allows our merchants to access nearly 10,000 convenient drop-off locations, catering to the growing preference for box-free and label-free returns, which now represent the favored method for nearly 80% of our users. We look forward to the continued positive impact this will have on our merchants’ profitability and their customers’ returns experiences.”

To all our retail customers, old and new, we're excited to see how this partnership will continue to elevate your operations and deliver exceptional shopper experiences.

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With the rapid increase in the number of returns from online purchases, retailers have worked to direct those "BORIS" (buy-online-return-in-store) returns into their physical stores—to increase customer satisfaction, decrease return costs, and drive follow-on purchases.

Many of the largest retailers, who operate multiple brands both online and in stores, have long wanted the ability to seamlessly accept returns from all their brands across their entire network.

Happy Returns, a UPS company, has introduced a first-of-its-kind BORIS solution that enables enterprise retailers to accept box-free, label-free returns and exchanges across their full store network. The system includes several software and reverse logistics components, described below, that can be easily adapted to successfully serve a wide range of customer needs and configurations.

"Over the past eight years, we've developed cross-brand box-free returns from an innovative idea to an enterprise-grade solution," says David Sobie, co-founder and CEO of Happy Returns. "Now we're leveraging our technology, expertise and scale in reverse logistics to be the first to enable retailers to seamlessly accept returns throughout their full networks."

Launch with SHEIN and Forever 21

One of the first brands to adopt Happy Returns' innovative BORIS solution is global online fashion and lifestyle retailer, SHEIN. The brand, which has partnered with Authentic Brands Group's Forever 21, offers its 150 million U.S. shoppers the convenience of hassle-free physical returns at Forever 21's more than 300 continental U.S. stores nationwide.

"We are always looking for new ways to optimize the shopping experience for SHEIN customers – from speedier delivery to easy returns," said George Chiao, President, SHEIN U.S. "Happy Returns has pioneered a seamless, simple returns model and we are excited to launch this offering across hundreds of Forever 21 stores across the country."

"Forever 21 is looking forward to offering an easy customer experience for SHEIN shoppers looking to return their items while also introducing our brand to an even broader audience. Once SHEIN shoppers complete their return we are pleased to offer a same-day discount on their next Forever 21 purchase," said Winnie Park, CEO, Forever 21.

Five key features of Happy Returns' solution for delivering cross-brand BORIS returns to retailers at scale:

1. Return portal agnostic: Happy Returns' cross-brand BORIS solution works with any return portal software for shoppers to initiate a return. Retailers can use their own portal or Happy Returns® software to generate QR codes for box-free drop off and direct shoppers to any store designated in the merchant's network.

2. Point-of-sale agnostic: Happy Returns provides software that powers the workflow to receive and verify cross-brand, box-free returns in store. This software is compatible with any POS system that supports a browser window, ensuring the setup process is lightweight and adaptable to various retail environments.

3. Reverse logistics: Once returns are dropped off, Happy Returns provides configurable reverse logistics options to move inventory to the next best place for sale — whether that means keeping it in-store, moving it to a different store in the retailer's network, or shipping returns to an e-commerce warehouse. Everything from shipping supplies to coordinating pick-ups to shipping the inventory can be included, along with visibility to track returned goods on each step of their journey.

4. Location management: Happy Returns provides an experienced team to train and support merchants’ store employees, ensuring store associates can succeed and shoppers can enjoy the same, friction-free return experience that earned Happy Returns a 93 Net Promoter Score rating across its own Return Bar® network.

5. Patent-pending fraud detection: Happy Returns cross-brand BORIS solution includes specialized POS software, proven processes, and a dedicated team that actively monitors, manages, and supports locations to help prevent return fraud.

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Welcome back to the "How-to with Happy Returns" video series. In our last video, we explored the power of tracking shopper feedback through Net Promoter Scores (NPS).  

Today we're tackling another aspect of customer satisfaction that's equally crucial: reducing returns-related customer service calls. This latest video showcases how Happy Returns can help reduce the burden on your service team while enhancing the shopping experience with efficiency and ease. 

Why watch this video? 

• Automated return portal: This self-service system echoes our belief in the power of customer autonomy, allowing shoppers to initiate returns or exchanges effortlessly.  

• Transparency: Through automated updates, shoppers can stay informed about their return status from initiation to completion. 

• Instant gratification: Learn how dropping off a return at a Return Bar helps reduce the classic "Where's my refund?" calls.  

Your customers aren't the only ones that benefit from a seamless returns experience. With Happy Returns, your teams gain visibility into when returns are initiated, why they're returned, when they're dropped off, and when they are headed to your warehouse.  

Click play to discover how we can help make your return process faster and more user-friendly, so shoppers can complete their return without calling you. 

Visit happyreturns.com/how-to for more ways to optimize your online returns strategy.  

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That data confirmed that shoppers are returning more online orders and rising return volumes are impacting retail operations. Yet it also highlighted how an effective returns process can be a key competitive advantage for omnnichannel retailers. Surveyed shoppers shared details on their preference for box-free, label-free returns and how certain return policy factors can influence their buying decisions now and in the future.

Below are five key takeaways from the "2023 Happy Returns" report. You can also download the full report here.

How are you planning to manage returns this year?

If you're curious how box-free, label-free returns can help your business improve operations and increase customer lifetime value, we'd love to hear from you.

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Are you looking to deeply understand what your customers truly think about your return experience? You know that in today's fast-paced world, measuring customer satisfaction isn't just a nice-to-have; it's crucial for success. That’s why capturing Net Promoter Scores (NPS) is a key (and customer favorite) feature at Happy Returns.   

NPS is a simple yet powerful way to measure and track customer satisfaction, which ultimately translates to long-term customer loyalty. 

But how can you effectively use your return and exchange experience to track and interpret NPS data to make meaningful improvements? 

We're excited to introduce our latest “How-to with Happy Returns” video, which dives into how you can gather customer feedback about your return experience and gain insights on how to leverage shopper comments for maximum impact. 

Why watch this video? 

• Shopper surveys: Learn how Happy Returns helps you systematically gather NPS data from your shoppers.  

• Real-time feedback: Understand the power of receiving real-time feedback, allowing you to respond promptly and effectively to your customers' needs. 

• Actionable insights: Take a deep dive into survey data so you can make meaningful changes that improve your customer experience. 

Let’s take a step towards fostering stronger customer relationships. Click play to see how Happy Returns can help you monitor NPS throughout the return and exchange journey.  

Visit happyreturns.com/how-to for more ways to optimize your online returns strategy.  

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Holidays are expensive. While it’s the busiest selling season of the year for most merchants, the National Retail Federation (NRF) estimates that nearly 18% of all holiday purchases across product types will be returned—costing merchants roughly $171 billion. In recent years, many merchants have been looking for new strategies to offset the high cost of e-commerce returns. Enter return fees. 

Last year, 16% of merchants that participated in our annual survey planned to start charging for returns in 2023. However, based on this year’s data, 81% said they had implemented return fees after all, highlighting the urgency to recoup revenue from increasing return rates.  

Now, with holiday sales underway (a phenomenon that seems to begin right after back-to-school sales these days), there are still a number of simple steps retailers can still take so that returns don’t swallow this year’s holiday revenue. 

Good return policies can reduce friction  

Return policies matter to shoppers – even before they browse. In fact, 81% of shoppers review return policies before shopping with a merchant for the first time and 61% are even more likely to consider return policies before making a holiday purchase online.  

Merchants that provide clear, concise return policies right out of the gate may win over customers before they even start to shop. An easy-to-access and easy-to-understand return policy may boost shoppers’ confidence and turn browsers into buyers. 

Be consistent throughout the shopper journey 

More than half (55%) of shoppers say they’ve abandoned a purchase because the return policy didn’t offer a convenient return option. 

If shoppers already have products in their cart, but only then realize the return policy isn’t satisfactory, not only can that shopper experience sacrifice a sale, but it can also turn a shopper off for good. 

Include return policy details on product detail pages and in customer communications throughout the season and into the new year. Be transparent—especially if there are seasonal changes. Use communications to demonstrate customer-centricity and reliability. 

Give the gift of convenient return options 

A focus on convenient return methods goes a long way towards meeting shoppers’ preferences too. Shoppers overwhelmingly prefer in-person returns and 90% try to avoid or refrain from shopping with merchants that require mail returns.  

That’s a huge departure from shoppers accepting mail returns as the default method. As David Sobie, co-founder and CEO of Happy Returns, a UPS company, recently stated: 

“Mail-in returns are a thing of the past. Please don't make me print a label. Don't make me find a box. Don't make me tape up the box. And then most importantly, once I have prepared my arts and crafts projects and put it in the mail, my reward is to then go back and check my credit card statements in the next two or three weeks and hope that I get my refund or hope that my exchange gets triggered? Please don't make me go through that process.”   

Offering hassle-free return methods gives shoppers the gift of flexibility and convenience. A good return policy can lead to repeat business. It isn’t meant to incentivize more returns, but it does improve shoppers’ overall experience. And that makes future sales worth it.   

By the way: Providing a variety of options at different price points can help merchants influence how shoppers make a return, often guiding them to choose the most affordable option for both the shopper and the merchant.  

For example, charging for more expensive return options like mail returns, but offering in-person returns at third-party drop-off locations for free, can help merchants offset high return costs while also providing more desirable return methods to shoppers. Some already are: 59% of merchants that implemented return fees saw an increase in shoppers opting for the free method they offer. It’s a win-win.   

Happy returns, happy shoppers, happy holidays 

Returns happen, especially as e-commerce sales continue to grow. And the holidays are hectic enough. By continuing to evolve return policies, you can help alleviate some of the stress of Q4. But it doesn’t stop there. Here are a few other ways to uplevel your return policy and process while meeting (and exceeding) shoppers' expectations:  

• Beyond transparent return policies, make it super simple to initiate a return or exchange 

• Add incentives during the returns experience to boost exchange rates or return for site credit, like discounts on future purchases or waiving shipping fees 

• Extend your return and/or exchange windows into the new year to add even more flexibility and convenience for shoppers during the holiday rush 

• And again, implement return fees thoughtfully – identify what shoppers want and find a strategically beneficial way to give it to them. Maybe a good New Years’ resolution? 

Don’t miss! Download the new 2023 Returns Happen report to see what shoppers look for in a return policy and how merchants are responding. Set your teams up for success in the new year – it's bound to be a pivotal year for e-commerce returns. 

Sources: 

1. Worldwide Business Research (WBR), commissioned by PayPal, December 8, 2022 - January 17, 2023. The phone interview was conducted by WBR across 100 U.S. apparel and footwear merchants with annual revenues of $500 million or more (n=100). 

2. Worldwide Business Research (WBR), commissioned by PayPal, December 8, 2022 - January 17, 2023. The phone interview was conducted by WBR across 100 U.S. apparel and footwear merchants with annual revenues of $500 million or more (n=100). 

3. TRC, commissioned by PayPal, September 8-19, 2022. The research was conducted by TRC, with fieldwork administered by Forsta across 2,002 U.S. consumers who returned an online purchase within the past year. (n=2,002) 

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