Canadian Retailer - The Supply Chain & Logistics Issue - 39

Canada Post's new drive-thru parcel centres are simplifying returns and the retail last mile.

	 Canada Post's 'Drive-thru Parcel
	 Karl Deveaux, owner of one of Canada's busiest UPS Store lo- Centre' is addressing returns in a
cations in Edmonton, identifies returns as a critical piece of the unique way by introducing dressing
retail chain, explaining some of the challenges he's seen with re- rooms as a prototype in three of its
turns, as well as how some retailers are getting it right in terms locations. Each prototype location
of best serving the e-commerce consumer.
features a 50-square-foot private fit	 "It really depends on the retailer," said Deveaux. "Some re- ting room, where customers can try
tailers have made the process of returning product simple by on their apparel purchases as soon
providing labels and packaging, while others have not."
as they receive their parcels at the
	 He says Amazon makes up about 80 per cent of the retail pack- post office. Clothing that does not fit,
ages going through his Edmonton UPS location. "They've got it or is the wrong colour, can be easily
down", says Deveau, explaining how Amazon supplies custom- returned immediately without ever
ers with pre-paid labels and packaging specifically for returns. leaving the post office.
"Consumers are surprised at how easy the process
is," he notes, going on to say that Apple has also "IT [RETURNS] BECOMES COMPLICATED
AND CAN BE COSTLY WHEN A RETAILER
perfected the process of facilitating returns.
	 Some retailers make things more difficult for re- DOESN'T MAKE PROVISIONS FOR
turns, and the consumer may be in for a big sur- CONSUMER RETURNS."
- KARL DEVEAUX
prise when they go to make one. "It becomes comUPS Store
plicated and can be costly when a retailer doesn't make provision
for consumer returns," he says. "If the retailer hasn't paid for pre- 	 What does the future hold in terms
paid shipping, the consumer trying to return products can be on of innovating with the last mile?
the hook for having to pay for it themselves. If the item is fragile, There are many possibilities, ranthe cost of packaging and shipping the return can sometimes be ging from self-driving cars to drone
more than that of the original product purchase." Deveaux ex- delivery to uber-like services. While
plains that consumers may become dissatisfied with the retailer, drone delivery might not be feasible
not to mention his UPS store, when returns become complicated in some cities, Best Buy's Philippe
and time consuming.
Arrata noted that it could be useful
	 Things can be even more complicated when ordering from in shipping product from a distriburetailers in the United States.
tion centre to a store. What is clear,
	 "There's often extra time involved when making a return to is as Canadian retailers continue
a retailer in the US, which may even require paperwork where to compete and look for efficiencies
the consumer has to explain the makeup of an item-with a while reducing costs, the last mile
garment, for example, she may have to reveal the percentage will be a critical gap to fill in order
makeup of its fabric. And if that's not done," Deveau says, "it can to gain competitive advantage and
be held up in customs with penalties".
win the Canadian retail wars.
Returns

www.retailcouncil.org/cdnretailer

THE SUPPLY CHAIN & LOGISTICS ISSUE

| CANADIAN RETAILER | 3 9
http://www.retailcouncil.org/cdnretailer
Table of Contents for the Digital Edition of Canadian Retailer - The Supply Chain & Logistics Issue
