Merchandise Return Service

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1 Merchandise Return Service Reinaldo Padilla Field Sales Representative March 11,

2 Why a Consumer Returns a Product 4 Reasons for Returns 1. Returned Merchandise- The product did not meet the consumer s expectations (i.e. wrong size or color, not satisfied with quality, wrong product shipped, etc.) or they may have simply changed their minds about the purchase. These reasons are based on consumer desires. 2. Repairs- The product was broken or damaged *More than 90% of products are returned because of reason 1 or 2 3. Recalls- The Merchant demands for the consumer to return the product due to a manufacturing defect 4. Recovery- The product is usually an old electronic device that is returned to either recover/recycle its useful parts * Source: Colography Returns Market Survey and Accenture analysis-assumes $185.5B total value of returned goods (NRF 2009 Consumer Returns in the Retail Industry ); average transaction value of $250 (~3x the average online transaction value of ~$75-80, as given by ComScore) and 40% of Returns occur by mail (Colography Returns Survey) 2

3 Why Consumer s Desires Matter to the Merchant The Consumer s Return Experience Dramatically Affects Consumer Retention 85% of consumers WILL NOT do business with the merchant again if the return process is not convenient 95% of consumers WILL do business with the merchant again if the return process is convenient Impact of a negative returns experience Impact of a positive returns experience 85% loss 95% Retention Source: Comscore 3

4 Customer s Needs Customers expect a Returns process that is Convenient- Easy drop off Simple- Easy to understand Returns process Free or Low Cost Transparent- View the status of package Fast- Package reaches the Returns Center quickly for a prompt refund/credit 4

5 Business Needs Visibility Inventory control Ability to forecast staffing Reduce call center costs Detailed Reporting Manage and forecast budgets Identify anomalies in returns trends Speedy Return Process Reduces customer call volume Improves customer satisfaction Trust and Security Enhances merchant image Protection of merchandise Identify fraud early 5

6 The USPS Solution USPS Returns products address business and customer needs. Lowest cost provider for small packages Convenient customer drop off Package Tracking Free Package Pickup at residence Pricing Flexibility No Fee to create and distribute labels to customers 6

7 USPS Returns Portfolio Merchandise Return Service Scan Based Payment Return Service 10,000 pieces/year/location Full Network Parcel Return Service 50,000 pieces/year/location Ground only Parcel Return Service Partner offering

8 Merchandise Return Service (MRS) No minimum volume required Commercial pricing MRS permit fee and annual accounting fee Addressed to Postage Due Unit Each piece weighed & rated to collect postage Intelligent Mail package barcode for visibility Electronic Delivery Confirmation Fee New cloud label format Jan 27, 2013 Tracking is free

9 Merchandise Return Service Priority Mail First-Class Package Services Media Mail Library Mail Special Services Insurance Registered Mail Certified Mail Delivery Confirmation Return Receipt for Merchandise Special Handling Mailing Acknowledgement Pickup on Demand Service

10 MRS Label Option Click-N-Ship for Business 1. Permit holder creates the Electronic MRS label using ClickNShip for Business (Label Type) includes in box saves label image as pdf and s to consumer 10

11 MRS Label Options Self-Service Label Tool 2. Permit holder posts a link from their website to USPS customized label tool. Customer prints their own label. Test url: hippinginfoincluded=no

12 MRS Label Option Call Center Label Tool 3. Customer calls the company s Call Center - They use the USPS customized Call Center label tool and mail/ the label to consumer Test url: &ShippingInfoIncluded=No

13 MRS Label Option - API 4. Application Program Interface (API) on their website to call the USPS Returns Web Service so consumer can create labels - Consumer stays on company s website 13

14 How Does PRS Full Network Work? Customer Drops Off Return with USPS Customer has two options 1. Request for Pickup at Home Daily presence at 150 million addresses Free Package Pickup, including Saturday 2. Drop-off at any Post Office Over 33,000 retail outlets Over 180,000 drop boxes 14

15 Visibility Packages are scanned an average of 7-10 times 15

16 Technical Assistance & Resources Merchandise Return Service permit PS Form 3615 CAPS account - Applications are on the CAPS site Mailer ID (Customer Gateway) Operations Integration Specialist Electronic label setup Operations Integration Specialist MRS processing questions blue.usps.gov/mrs Merchandise Return Service details DMM 505

17 Additional USPS APIs ADDRESS INFORMATION Never get another address or Zip Code TM wrong again with our address standardization city and state lookup APIs. Shipping tools for any size business USPS Web Tools APIs can help you deliver seamless, simple customer service, while saving you time and money. TRACKING & DELIVERY INFORMATION Get estimated delivery information and track packages until they arrive with Tracking & Delivery information APIs. PRICE CALCULATOR Calculate postage rates quickly and easily online for domestic and international shipping. PRINT SHIPPING LABELS Print a complete shipping label with a tracking barcode to track packages seamlessly with one of our PC Postage partners PACKAGE PICKUP Stop going to the Post Office TM to drop of your packages. With the Package Pickup API, you can submit a pickup request and we ll pick up your package for free. SERVICE STANDARDS & COMMITMENTS Get estimates on delivery and receive guaranteed Commitments with certain service. 17

18 Thank you Questions?

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