The problem is compounded when supporting exchanges: you ship the first to your customer, they ship back the return, and you ship out the exchange. The process requires three shipments.
But the solution is not to get rid of exchanges, they are a vital part of the online shopping experience.
At Loop, our goal is to make returns and exchanges as efficient as possible. That is why we’re excited to announce Destinations.
Destinations allows you to have multiple return locations
If your brand uses multiple locations, or a 3PL with multiple locations, Destinations is for you. By activating this feature, Loop will automatically route returns to the lowest cost destination.
Operate more efficiently, get inventory back faster, and save money on each shipping label generated
This allows you to operate more efficiently, get inventory back faster, and save money on each shipping label generated.
Multiple return locations means cheaper shipping labels
The cost of shipping comes down to the package size, weight, and distance traveled. While we can’t change the size of what you sell, we can reduce the distance a return travels.
Before Destinations, returns were routed to a single location. This means a customer in New York and a customer in California would send their return to the same address.
To illustrate the impact on cost, we can use this zone map of California provided by Shipbob.
The higher the zone the higher the cost of shipping there (or back).
In the example above, a return coming from New York would have zone 8 shipping rates applied. That means the customers you acquire and support on the East Coast are much more expensive than those on the West.
A cross country exchange would be charged zone 8 shipping fees three times.
Destinations allows you to route your returns to closer locations, reducing the distance traveled and saving you money.
Here is an updated zone map when leveraging multiple return locations across the country.
Because Destinations automatically generates the cheapest return label, our customer in New York would now ship Zone 1 to the closest return address.
With multiple destinations, each return is now faster and less expensive.
How much would be saved per return?
Let's assume the average product in your catalog weighs 15 oz and you are shipping USPS First Class Mail.
Using EasyPost’s pricing table, a Zone 8 shipment from New York to California would cost $5.70.
With multiple warehouses and Destinations, the new Zone 1/2 shipment costs just $5.04.
Resulting in savings of $0.66 per return shipment.
Running the same scenario with a 2lb product, results in savings of $3.55 per return shipment. If the return is an exchange, the savings are further multiplied by three.
More than just cost savings
When you are able to send returns and exchanges to a closer location you are able to get inventory back faster. Less time in transit means you are able to restock items for sale faster than you were before.
Reducing the distance traveled has environmental benefits too. Each package shipped spends less time in a truck, reducing your carbon footprint.
Each return becomes faster, cheaper, and more environmentally friendly.
This is just the beginning
Destinations is step one in our mission to make returns as easy and efficient as possible. New features are just around the corner that will reduce return shipping costs even further and make your policy adaptable to cross-border shipments.
If you are a current Loop customer click here to add your return destinations. If you aren’t yet using Loop, we would love the opportunity to show you how Destinations could work for your multi-location business.