As ecommerce scales, online returns are becoming a permanent margin drag. Fees and tighter policies can shift consumer behavior but put sales and loyalty at risk, forcing retailers to balance cost control with convenience expectations.
American Express and UPS partnered to help ease the cost of shipping for small and midsize businesses (SMBs), per a press release. Amex and UPS’ partnership can help SMBs save on shipping costs and could make UPS a more attractive logistics partner—especially as other mailing providers, such as Korea Post, Norway and Finland’s carriers, Deutsche Post, and DHL Parcel Germany plan to stop US-bound deliveries due to confusion over duty charges and required data submissions.
The challenges: UPS’ turnaround remains in the early innings due to structural inefficiencies, operational missteps, and mounting macroeconomic headwinds. Our take: UPS faces a difficult road ahead. The company is actively trying to streamline operations—planning to shutter up to 10% of its buildings, downsize its fleet, and reduce its US workforce to better align with leaner volumes. It’s also trimming low-margin business, notably cutting back on Amazon deliveries, which made up as much as 11.8% of its total revenues last year, in an effort to prioritize more profitable shipments. Still, with demand under pressure and cost headwinds mounting, stabilizing performance will be an uphill climb.
Online returns growth will outpace overall ecommerce growth through 2028, driving retailers to update their strategies and solutions to manage costs.
Retail returns will top $1 trillion in 2025: But growth will slow as retailers impose stricter policies, albeit at the risk of hurting sales.
UPS pushes into healthcare logistics: The company is renting out custom lab space near its main global air hub. Diagnostics companies will be able to consolidate their shipping operations and drive downstream cost-savings.
Walmart and Delta have adopted VR for effective, immersive employee training, though high upfront costs may deter smaller companies.
Online return rates are finally coming down from recent highs. But as ecommerce's share of retail sales grows, so will returns from online sales.
Amazon and Walmart build out their delivery infrastructure: Both companies look to boost the speed and efficiency with which they fulfill shoppers’ online orders.
On today's podcast episode, we discuss whether people will ever buy items they see in TV shows, if online ratings are broken, a relaunched Amazon Shipping trying to compete with UPS and FedEx, if CNN and sports can move the needle for streaming service Max, whether the continuing partnership between Target and Starbucks is boosting curbside pickup, where we got gas before gas stations, and more. Tune in to the discussion with our vice president of content Suzy Davidkhanian and analysts Blake Droesch and Paul Verna.
Amazon wants to compete with FedEx and UPS: The retailer relaunched its Amazon Shipping service, which delivers products sold on Amazon's marketplace, sellers’ own websites, and other sites and marketplaces.
Deal-seeking by consumers, heavy discounting from retailers, and a longer holiday shopping season drove an uptick in returns during the 2022 holiday season. Retailers will need to plan their promotional calendars carefully to manage returns in 2023.
Generous returns policies have encouraged shoppers to buy online, but an unsustainable wave of returned goods is forcing retailers to rethink their strategies.
Potential UPS strike hastens last-mile diversification: Rival FedEx, as well as local carriers and retailers’ logistics services, are reaping the rewards as companies try to minimize disruption.
Macy’s, Neiman Marcus, Hudson’s Bay rethink their strategies as department store sales fall: Tactics include using data science to predict trends and improve pricing strategy, doubling down on luxury, and maximizing store appeal with experiential concepts.
Retailers struggle under the weight of holiday returns: Global returns grew 63% YoY as economic concerns drove shoppers to rethink purchases.
US retail sales grew 7.6% over the holiday season: Consumers diversified their spending due to inflation and a desire to return to pre-pandemic activities such as eating out.
What retailers need to know about the new wave of delivery apps and quick-commerce startups.
A proposed rule would make it easier to reclassify gig workers as employees: That could have severe repercussions for DoorDash, Amazon, Uber, and countless others that rely on the gig economy.
FedEx sounds the alarm for a global recession: But the company’s misfortunes may owe more to strategic misfires than worsening economic conditions.
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