Managing Your Returns Process

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Managing Your Returns Process
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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

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Fast Fact

• Today
• 34 million households shop online
• 2008 Projection
• 63 million households will shop online

Source Forresters Research, July 2003
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Market Forecasts

• "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

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USPS Market Share
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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)

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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

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Benefits of Merchandise Return Service

• Merchant controls
• Label distribution
• With order, by mail, email, 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

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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

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Commercial Pricing Opportunity

• Parcel Select success
• Use our available pricing tools
• Worksharing discounts
• Lower prices in exchange for cost-reducing
  behavior

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Parcel Post Volume Trend Workshare Re-bound
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Parcel Return Services Experiment

• Two year experiment
• 3rd 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

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Current Merchandise Return Service
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Parcel Return Services Return BMC Option

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Parcel Return Services Return Delivery Unit
Option

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Contribution
1 Based on a 3 LB, Zone 6 Machinable Parcel 2
Based on a 3 LB, Zone 3 Machinable Parcel
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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

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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

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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

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Labels

• Unique legend box identifying the item as Bound
  Printed Matter Return Service

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Offering a commercial parcel returns option will
better position the USPS
Could be provided by 3rd party logistics
providers
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Who Qualifies?

• Up to 20 participants during 1st year
• Additional 10 during 2nd 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

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How to Become a Participant?

• Send a letter or email the request to
• Manager, Mailing Standards
• sherry.l.freda_at_usps.gov
• See Postal Bulletin 22112 (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

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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

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

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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

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UCC/EAN Code 128 Barcode Symbology
Delivery Sort ZIP Code (5-digit ZIP Code or the
ZIP4 Code )
UCC/EAN Code 128 Concatenated Code Structure
(Combines the 5-digit postal routing code and
20-digit Delivery Confirmation or Signature
Confirmation information)
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Confirmation Barcodes

• Switch date for the Delivery and Signature
  Confirmation Barcode Symbology is September 2004.

(20-digits)
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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

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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