FedEx Office locations now accept Amazon returns

The news: Amazon added FedEx Office’s more than 1,500 US locations to its returns network, pushing its total number of drop-off points past 10,000.

Amazon says 4 in 5 US customers now have a drop-off location within five miles of home. The network also includes Whole Foods, The UPS Store, Kohl’s, Staples, and select regional partners.

Why it matters: Roughly 2 in 3 US consumers consider return policies when choosing retailers, per FedEx and Morning Consult. While adding locations doesn’t change Amazon’s policy, it enhances convenience within an already streamlined process: Customers initiate returns in-app or online, select a drop-off point, and use a QR code to return unpackaged items without labels or boxes.

Implications for retailers: Amazon is using frictionless returns as a competitive weapon. As we expect online return volumes to grow 6.3% YoY this year, its scale gives it an edge over retailers struggling to manage rising costs, which totaled $849.9 billion last year, per NRF/Happy Returns. As returns become a key point of differentiation, Amazon is raising the bar in ways competitors may struggle to match.

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