Returns season is peaking following the 2023 holidays. As it does, the global shipping and mailing company Pitney Bowes will add new drop-off locations through a partnership with PackageHub.

Together, the companies announced the launch of a new returns drop-off network, consisting of almost 1,000 PackageHub shipping locations. Those drop-off points will expand options for Pitney Bowes. It already offers no-label returns at 30,000 postal locations, according to its official numbers. The announcement states that the network will add “hundreds more” locations in the near future.

The no-box and no-label returns will be available to ecommerce brands using Pitney Bowes. These include the dog toy and treat retailer Bark, direct-to-consumer shoe brand Rothy’s and online marketplace Uncommon Goods.

Bark ranks No. 187, Rothy’s ranks No. 237, and Uncommon Goods ranks No. 910 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales. Among retailers in the Top 1000, 10 use Pitney Bowes for fulfillment services. Meanwhile, 63 use it for international ecommerce services, and 104 use it as a shipping carrier.

Rising importance of drop-off locations for returns

Among the benefits Pitney Bowes is pitching with the expanded network are reduced exceptions during processing, fraud reduction, and consumer convenience. 14.5% of all retail sales were returned in 2023, according to a December report from the National Retail Federation and Appriss Retail. The report showed that returns for online orders outpace those for in-store purchases. It also estimated returned merchandise in 2023 to be worth $743 billion. Of that total, $101 billion was lost to returns abuse and fraud.

Image credit: Pitney Bowes

“Ecommerce returns are among the fastest-growing costs for retailers — costs that are sure to increase given the historic levels of online shopping we’ve seen this holiday,” said Gregg Zegras, EVP and president of global ecommerce at Pitney Bowes, in the announcement Wednesday. “We have the longest-standing ecommerce returns service in the industry — and now, with the launch of this network with our partner, PackageHub, we have access to their network of premium drop-off locations across the U.S., making this the most comprehensive returns service, capable of lowering the cost of returns while simultaneously improving the consumer experience.”

Staying competitive with no-label and box-free returns

No-label and box-free returns have also been offered as options at Amazon and Happy Returns. UPS announced plans in October to acquire the latter. That deal made Happy Returns drop-offs possible at 12,000 UPS locations. Pitney Bowes will hope to stay competitive against options like those and Amazon’s network, which includes Amazon Fresh, Kohl’s and Whole Foods locations.

“By aligning with Pitney Bowes, we are poised to deliver a premium returns experience to both merchants and consumers through PackageHub Returns, ensuring a mutually beneficial outcome,” said Brandon Gale, CEO of PackageHub. “The Pitney Bowes’ returns approach seamlessly complements our strategic vision, and we eagerly welcome them in the PackageHub family. We believe this partnership offers an incredible value-add to our ever-increasing network of PackageHub store owners.”

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