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Don’t waste another dime on bloated channel reporting and vanity metrics.
First, there was BOPIS. This partnership between Amazon companies signals the rise of BORIS.
Two Amazon subsidiaries are teaming up to provide customers with more return options.
The news: Footwear and apparel-focused ecommerce platform Zappos.com is launching a new returns service that allows customers to turn items back in without a box or label. Plus, returns can be dropped off in-person at Whole Foods Market stores nationwide.
How it works:
Customers start a Zappos return process through the company’s system. If it qualifies for dropoff, they will see the “Label Free Box Free” option populate in the menu.
Items can then be taken to a Whole Foods Market location in the original packaging, without a box.
Customers drop off an item at the customer service desk or return kiosk at a Whole Foods, and show the return code to an associate.
Key quote from Zappos.com CEO Scott Schaefer: “Being a customer-first company is in Zappos' DNA. As our customers' needs evolve, we evolve with them to ensure we're exceeding expectations…With Label Free Box Free Returns, we're excited to not only be better serving our customers, but also to have found a natural partner in Whole Foods Market.”
A returns pioneer: Any return innovation from Zappos is notable, given its place in creating the norms of ecommerce policies that are frequently used today. Even before it was acquired by Amazon in 2009, Zappos pioneered free shipping and free returns. These soon became widely standardized practices for a new generation of digital brands and retailers that were focused on creating a great customer experience, and easing processes for shoppers who couldn’t touch and feel an item before they bought it. Zappos still has a return policy that stands out: Returns are still free, and can be shipped from anywhere in the U.S. within 365 days of purchase.
Today’s returns conundrum: The new partnership comes as brands and retailers are facing dueling priorities when it comes to returns. For one, they want to continue creating a great customer experience, especially as logistics innovation opens up new options. At the same time, returns are piling up. The return rate for the 2022 holiday season grew 63% over the prior year, Salesforce found. This challenges the capacity of logistics systems to process returns, and it can also eat into profits that are already being pressured by a tough macroeconomic environment.
How this partnership provides an answer: Let’s break down Zappos’ new service:
For the customer, box-free and label-free returns reduce hassle. Customers don’t have to find a box and pack it in order to send an item back.
Dropoff also adds ease. In one sense, Whole Foods dropoff does add a step for the consumer, as it requires them to bring an item to a location. But in the context of every day life, it can create a measure of convenience. Dropping off a return at the grocery store saves a trip to the post office or store. This can help customers to combine errands. We already have BOPIS, or Buy Online Pickup in Store. A new wave of returns dropoff is ushering in BORIS, or Buy Online Return in Store.
For Zappos, which is the retailer, there are a number of logistics advantages. The dropoff saves a step of having to rely on carrier pickup. The company can consolidate returns at Whole Foods locations, and plan routing accordingly. It also gives Zappos branding at Whole Foods stores, which could help the company stand out in customers’ minds when they go to make a future purchase.
For Whole Foods, it gives people another reason to visit stores, where they may be likely to buy a grocery item while they are there. Zappos is helped in this case by its alignment with Amazon, which also has returns dropoff at Whole Foods. Dropoff of sneakers and apparel is another way that Whole Foods is growing beyond its core business of selling grocery items to becoming a hub of activity under Amazon’s orbit.
The bottom line: With pickup, box-free and dropoff policies being adopted, there’s a new wave of returns innovation taking shape. Zappos wants to continue to be on the forefront and this partnership will help. For more examples, check out The Current’s recent look at new policies from Amazon, FedEx and DoorDash.The cuts amount to 4% of the ecommerce platform's workforce.
On ebay's campus. (Photo by Flickr user Kazuhisa OTSUBO, used under a Creative Commons license)
eBay is set to become the latest ecommerce platform to conduct layoffs.
The company announced plans on Tuesday to lay off 500 employees, which amounts to about 4% of its workforce. Layoffs were set to take place over the next 24 hours, the company said Tuesday evening.
In an SEC filing, CEO Jamie Iannone said the decision to make layoffs came after consideration of the macroeconomic environment and where the company could best invest for the long-term.
Iannone said the moves “are designed to strengthen our ability to deliver better end-to-end experiences for our customers and to support more innovation and scale across our platform.”
“Importantly, this shift gives us additional space to invest and create new roles in high-potential areas — new technologies, customer innovations and key markets — and to continue to adapt and flex with the changing macro, ecommerce and technology landscape,” Iannone wrote. “We’re also simplifying our structure to make decisions more effectively and with more speed.”
eBay is one of the oldest ecommerce platforms, and remains an active marketplace for both new and resale items. The San Francisco-based company has yet to report results for the fourth quarter of 2022. In the third quarter, the company said gross merchandise volume was down 11%, and revenue was down 5% year-over-year.
Yet the company has also continued to invest. In 2022, it acquired collectibles platform TCGPlayer and myFitment, which provides parts and accessories for automotive and powersports. It also opened a secure vault for trading cards, and launched livestreaming.
eBay is also seeing a boost from advertising, with revenue driven by promoted listings up 19% in the third quarter.
With the layoffs, eBay joins other tech companies that provide the infrastructure of ecommerce in making layoffs. Amazon, Shopify, Salesforce, BigCommerce and Wayfair have all recently announced layoffs. Technology giants like Meta, Google and Microsoft have also made job cuts.
It comes as inflation is weighing on consumers’ discretionary spending, and the return to more in-person shopping throughout 2022 led to a correction following aggressive hiring during the pandemic.