Presentation is loading. Please wait.

Presentation is loading. Please wait.

Managing Your Returns Process. 2 Remote Shopping is Growing  December 2002 NRF Sales Data  Direct retail up 18.1%  Store sales up 2.2%  More room.

Similar presentations


Presentation on theme: "Managing Your Returns Process. 2 Remote Shopping is Growing  December 2002 NRF Sales Data  Direct retail up 18.1%  Store sales up 2.2%  More room."— Presentation transcript:

1 Managing Your Returns Process

2 2 Remote Shopping is Growing  December 2002 NRF Sales Data  Direct retail up 18.1%  Store sales up 2.2%  More room to grow  Brick & mortar approximately 90% of retail 5.7% 38.5% 4.1% DMA Estimates of Consumer Sales Growth Total Retail Catalog Internet

3 3 Fast Fact  Today  34 million households shop online  2008 Projection  63 million households will shop online Source: Forresters Research, July 2003

4 4 "Reverse Logistics costs may exceed $35 billion a year for U.S. companies." Reverse Logistics Executive Council 2002 "Consumer-Direct return volumes are forecasted at 182 M units in 2003." Colography Group 2002 Market Forecasts

5 USPS Volume and Share Gartner Census DMA Colography Forrester % 12%31% 50% USPS Market Share

6 6 USPS Offering Today  Recently revised website to make returns more visible  Consumer - Selected  Promote “Click-N-Ship” for returns  Merchant - Directed  Promote Merchandise Return Service  Electronic Merchandise Return (Web tool)

7 7 Merchandise Return Service Options  Level of service  Priority Mail  Package Services  Parcel Post, Special Standard, Bound Printed Matter, Library Rate  Special Services  Insurance  Delivery Confirmation  Mailing Acknowledgement

8 8 Benefits of Merchandise Return Service  Merchant controls  Label distribution  With order, by mail, , online or fax  Level & cost of service  Where returns are delivered  Merchant only charged for packages returned  Customers simply affix the label to the package  Drop it in a collection box  Hand it to their letter carrier  Bring it to any Post Office location

9 9 Commercial Challenge  USPS is not the dominate player in the ground shipping business  By default, many customers return items using the carrier that delivered their merchandise  Capturing a greater piece of the returns market requires a greater incentive

10 10 Commercial Pricing Opportunity  Parcel Select success  Use our available pricing tools  Worksharing discounts  Lower prices in exchange for cost- reducing behavior

11 Non-Workshared Workshared Parcel Post Volume Trend “Workshare Re-bound”

12 12 Parcel Return Services Experiment  Two year experiment  3 rd year if permanent classification filed  Three new rates offered  Parcel Select Return Service RDU  Parcel Select Return Service RBMC  Bound Printed Matter Return Service RBMC  Drop ship in reverse – bulk pickup at a delivery unit or bulk mail center  Avoids downstream transportation, processing and “weigh-and-rate” calculations

13 13 Current Merchandise Return Service Consumer Inter Parcel Post, 3-lb, Zone 6 machinable parcel$5.71 Intra Parcel Post, 3-lb, Zone 3 machinable parcel$4.11 Post Office Merchant P & DC Origin Bulk Mail Center P & DC Destinating Bulk Mail Center

14 14 Parcel Return Services Return BMC Option Consumer Originating Post Office Return BMC Merchant or Agent $5.71 MRS Inter-PP, 3-lb, Zone 3 machinable $4.11MRS Intra-BMC, 3-lb, Zone 6 machinable parcel $3.25Parcel Return Services RBMC rate $ $2.46 Savings P & DC

15 15 Parcel Return Services Return Delivery Unit Option Consumer Return Delivery Unit Merchant or Agent  Flat rate of $2 per piece, regardless of weight  First USPS “flat rate” parcel price

16 16 Contribution PriceCostContribution Inter BMC 1 $5.71$5.37$0.34 Intra BMC 2 $4.61$4.15$0.46 RBMC$3.74$2.84$0.89 RDU$2.00$1.10$ Based on a 3 LB, Zone 6 Machinable Parcel 2 Based on a 3 LB, Zone 3 Machinable Parcel

17 17 Parcel Return Services  Similarities to Merchandise Return Service  No postage required on return label  Only pay for labels returned  Annual permit & accounting fee  No special services included  Postage paid through CAPS account

18 18 Parcel Return Services  New features & requirements  RDU  Automated payment  Residual pickup at servicing BMC  RBMC  Agent manifests return parcels  Pickup every 48 hours at minimum  Phase II will use e-VS  Parcel Return Services barcode  Postal routing barcode  Only one permit and accounting fee required nationwide

19 19 Parcel Return Services Labels  Unique legend box identifying the item as Parcel Select or Bound Printed Matter Return Service  The destination address of the RDU or RBMC  Human-readable unique Mailer ID  Parcel Return Services barcode  Postal routing barcode

20 20 Labels  Unique legend box identifying the item as Bound Printed Matter Return Service

21 21 Offering a commercial parcel returns option will better position the USPS USPS Consumer Driven USPS Merchandise Return Service Competitor Return Service USPS Parcel Return Service Convenience  Print Labels  Merchant Payment  Commercial Pricing  Bundling Capabilities  * Consumer Notification and Payment  * Merchandise Inventory and Logistic Services  * Tracking  Potential Partnership w/ FedEx, UPS, etc.  * Could be provided by 3 rd party logistics providers

22 22 Who Qualifies?  Up to 20 participants during 1 st year  Additional 10 during 2 nd year  Must pick up parcels from RDU or RBMC  Every 48 hours  Must be able to manifest parcels within 48 hours of pickup for RBMC  RDU automatically charged from “Available for Pickup” scan  Use logistics partner  Consolidators  Reverse logistics companies

23 23 How to Become a Participant?  Send a letter or the request to:  Manager, Mailing Standards   See Postal Bulletin (Oct 2, 2003) for list of information required  USPS review panel evaluates requests  Approved participants will receive copy of service agreement and technical development guide

24 24 Participant Responsibilities  Prior to startup, mailer must:  Complete and sign service agreement  Complete system development  Returns manifesting system  e-VS file certification  Open unique PRS Permit & Accounting Fee  Receive approval for PRS client labels  Develop pickup schedule with RDU/RBMC

25 Uniform Code Council/European Article Number (UCC/EAN) Code 128 Barcode Symbology

26 26 Parcel Barcodes  Until January 9, 2004 parcel barcodes labels can be printed using one of the following barcode symbologies:  UCC/EAN Code 128  USS Code 128  USS Code I 2/5  USS Code 39

27 27 Parcel Barcode Switch Date  Effective January 10, 2004 parcel mailers who want to qualify for the parcel barcode discount must print labels using the UCC/EAN Code 128 barcode.  UCC/EAN Code 128 Barcode is:  accepted industry-wide as one of the most reliable and compact formats available today  more flexible and more compatible with the Delivery Confirmation barcode

28 28 UCC/EAN Code 128 Barcode Symbology Delivery Sort ZIP Code (5-digit ZIP Code or the ZIP+4 Code ) UCC/EAN Code 128 – Concatenated – Code Structure (Combines the 5-digit postal routing code and 20-digit Delivery Confirmation or Signature Confirmation information)

29 29 Confirmation Barcodes  Switch date for the Delivery and Signature Confirmation Barcode Symbology is September (20-digits)

30 30 Benefits of UCC/EAN Code 128 Barcode  Variable Length Barcode 5 digits up to 29 digits.  Improvement of first time read rates  Increased accuracy  Reduction of manual processing  Built in error detection

31 31 Barcode Issues  Non-compliance of current DMM specifications  Poor quality mailer applied barcode  Applying multiple barcodes  No barcode address label found on parcel  Barcode label partially covered with another barcode label  Barcode label damaged due to improper placement


Download ppt "Managing Your Returns Process. 2 Remote Shopping is Growing  December 2002 NRF Sales Data  Direct retail up 18.1%  Store sales up 2.2%  More room."

Similar presentations


Ads by Google