Customer friendly, cost-effective product returns

By Staff -- Modern Materials Handling, 10/1/2000

As most online consumers have already discovered, product returns usually come with a headache. Fortunately, there is a new remedy available to relieve some of the pain.

Newgistics, Inc., R.R. Donnelley Logistics Services, and USF Processors have formed a strategic alliance to create the most extensive and comprehensive returns management network for e-commerce and catalog companies.

Through a service called ReturnValet, the three companies offer direct-to-consumer merchants a more customer-friendly and cost-effective way of handling product returns.

ReturnValet (which operates for over 225 retailers, wholesalers, and manufacturers) enables consumers to go back to the online retailer where they bought the product, linking them to the Newgistics Web site, www.newgistics.com . There, the customer will receive information regarding the location of the nearest postal center where they can go and return the product-receiving instant credit.

"Consumers have indicated that they prefer to return products physically and get credit immediately," says Kevin Sheehan, president and chief executive officer of USF Processors, who believes that the face-to-face customer service from the convenient local storefronts will offer a more positive returns experience. A fully customized returns solution also handles the unique needs of each merchant.

There are currently 4,000 postal centers, only in the U.S., ready for operation to begin late November or early December says Sheehan.

The ReturnValet alliance leverages the strengths of each company.

Newgistics has a Web-enabled network of easy-to-find neighborhood storefronts.

R.R. donnelley Logistics, manages a nationwide network for pick-up and transportation of the returned items from the neighborhood return centers and has extensive experience working with leading catalogers and e-retailers.

USF Processors operates more than 80 strategically located returns management warehouses to efficiently handle the needs of each merchant.

"We will make it easier for catalog and e-retail customers to return merchandise through this strategic alliance," says Josh Hatfield, logistics manager for Garden.com, one of Newgistics' first customers.

"Our commitment to provide our customers the best pipeline-to-the-home solution for delivery of their parcels now includes an innovative returns solution."