January 5, 2026
wabeno/Depositphotos.com
Are Outsourced Consumer Returns a Positive for Retail?
Consumers are turning to third-party return services to handle the chore of bringing back gifts or other unwanted purchases to stores with retailers possibly benefiting from more efficient reverse logistics.
As profiled by The Wall Street Journal, Taskrabbit, the gig-worker-for-hire app owned by IKEA, saw a 62% year-over-year hike in return-related bookings during November and December.
ReturnQueen, whose fleet of branded purple trucks collect returns from consumers’ doorsteps, expects a 15% to 20% increase in January and February, historically the biggest months for returns. College Hunks Hauling Junk & Moving, over the last two years, has seen more inquiries about returns of heavy purchases such as treadmills. Major services like Uber and UPS also offer item return options.
For consumers, the benefit includes avoiding the hassle of returns, which might include taping up boxes, printing invoices, and standing in long lines at the post office or return counters in stores. ReturnQueen also helps consumers avoid missed refunds.
Among the comments from users on ReturnQueen’s website, “I love ReturnQueen. They have taken one large weekly chore out of my life. Having them pick up my returns and handle the process has given me valuable time.”
Another said, “Just do the math — for years we would miss ‘return windows’ or end up giving away items we paid for, but we “never got to return” … too busy, printer out of ink, didn’t have the right box, etc. Using Return Queen, those issues are GONE!”
Taskers For Returns Aren’t Exactly Cheap in All Cases, Though
The cost of hiring a “tasker” on the Taskrabbit website to assist with errands in Midtown Manhattan for the first two weeks of January runs an average hourly rate of $34, with many listing a two-hour minimum, according to the WSJ.
ReturnQueen charges $9.99 per pickup, with up to 12 items included and $1 for each extra item. Subscription services providing value for more regular users cost $19.99 per month or $199.99 annually.
For stores, one benefit is reducing the congestion at return counters as gig workers are incentivized to avoid busy times. However, the bigger benefit appears to be accelerated inventory recovery to get returned items back on the selling floor, particularly for those that partner with reverse logistic providers.
ReturnQueen notes that traditional return methods often take 30 or more days from customer initiation to inventory restocking, ReturnQueen can get “items back into circulation within days”
ReturnQueen offers a 24-hour verification guarantee that alerts brands of the returned product’s condition and status to speed decisions on redelivery, donation, or disposal, then routes and consolidates returns customized to each brand’s needs and to minimize costs. Michael Katz, founder and chairman, said in a blog entry, “Because fewer parties touch the item, handling costs drop, speed increases, and the customer experience improves.”
BrainTrust
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
Scott Benedict
Founder & CEO, Benedict Enterprises LLC
Recent Discussions
Discussion Questions
Do you see many consumers taking advantage of third-party services offering to handle their returns?
What benefits, if any, do such services offer for retailers?
Poll
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Just as online retailers made the purchasing side of shopping more convenient, outsourced return companies are now making the return side of shopping easier and faster. For what looks to be very reasonable fees, I think this model will grow exponentially in the future.
The real story here isn’t just consumer convenience; it’s inventory velocity. In a world where trends move fast, an item sitting in a ‘return limbo’ for 30 days is essentially lost capital.
Returns services are growing. However, they remain fairly niche as relatively few consumers want to pay for such a service. They are mostly used by wealthier consumers who do a lot of online purchasing.
If someone is so time stressed or unmotivated they want to pay people to do this for them
…well ,that’s between them and the provider. I don’t really see it as having much impact on retail, one way or the other. (I’ll hold off on the “once a nation of doers, America is doomed” talk , for now)
I think third-party return services will find a niche, but only a niche, rather than becoming a mass-adopted staple for most shoppers. There certainly are consumers who value convenience — particularly those with busy lifestyles or limited access to return options (no transportation, inflexible hours, etc.) — and they may lean into services that pick up packages, handle the reverse logistics, and remove the hassle of box, label, and line. But for the broader population, the vast majority of returns still happen through existing retailer channels (store drop-off, carrier drop-off, or curbside) because they’re free or low-cost and integrated into where the original purchase occurred. Most shoppers are still price sensitive about returns just as they are about purchases; given alternatives, many won’t pay extra for convenience unless the experience is truly frictionless and cost-justified.
For retailers, there are potential benefits to third-party return partners — but they’re subtle and context-dependent. Outsourcing the transactional burden of returns can reduce labor and processing costs, free up associate time for customer service, and shift some of the reverse logistic complexity (tracking, reconciliation, shipping) to a specialist operator. In theory, that can improve efficiency and even customer satisfaction when the service is well executed, because the brand doesn’t have to invest in every last touchpoint of the reverse flow. There’s also the upside of data enrichment if partners share insights about return reasons and patterns that can feed back into assortment, fit guides, or product content improvements.
That said, the drawbacks and risks matter. Retailers cede a degree of control over the brand experience in a moment that’s already a pain point for shoppers; if third-party performance is inconsistent, it can reflect poorly on the retailer itself. There’s also the danger of added cost layers that ultimately get passed back to consumers, which undermines value perception in a competitive marketplace where free and easy returns are increasingly table stakes. In my view, the stronger long-term play for most retailers is to optimize the return experience directly — through better product content, sizing tools, localized drop-off options, and friction-free in-store or buy-online-return-in-store execution — rather than outsourcing what should be a core part of the customer journey. Third-party services may augment that strategy in specific use cases, but they won’t replace the fundamentals of a retailer-owned return ecosystem.
There are pros and cons. Pros: Easier for some consumers to send back returns. May take this unwieldy process off the hands of the retailers. Cons: If it costs the consumer money to use these services, the consumer may just as well pay what retailers are inevitably going to charge for returns and restocking going forward. Does the retailer exercise any control over the quality of the process and th retailers facets the customer?
One thing I do know is that many consumers consider easy, hassle-free return policies an important part of the customer experience. Some retailers are tightening return policies, so those that keep returns easy and hassle-free will have a competitive advantage.
For those who don’t offer the easy, hassle-free returns, and for consumers who are willing to pay (which also means they can afford to pay), this service may have merit. Customers love convenience, and it often comes with a price they are willing to pay. But consider how long it has taken delivery services to find the model that works. The workable model for returns may not yet be perfected. (Or maybe ReturnQueen has cracked the code on third-party returns.)
Outsourcing returns can be a win-win. For consumers who value convenience and are willing to pay for it, it removes the hassle of returning items, while brands benefit from getting inventory back into circulation faster. That said, this model won’t make sense for every shopper or every product. Longer term, it’s interesting to think about how these services could tie back into inventory visibility, fraud checks, and recovery decisions.
Third-party return services offer legitimate operational benefits, including faster inventory recovery, improved data flow, and reduced congestion, particularly for retailers that partner strategically. ReturnQueen’s 24-hour verification and routing beats traditional 30-day cycles. But at its core, this is about processing failure more efficiently, not preventing it. Every return still represents a transaction that consumed resources in both directions. The risk is retailers getting comfortable optimizing reverse logistics instead of fixing what drives returns: poor sizing tools, misleading content, and weak product-customer matching.
I am the poster child for forgetting to return things and I have never used one of these services. I don’t know anyone who does. You don’t seem to hear much about them though so maybe that’s why.
We are seeing the ‘Uber-ization’ of the boring parts of life. Just as people pay for grocery delivery to save an hour, they are now paying to outsource the friction of returns. This suggests that the ‘return experience’ has become so painful that it has created an entirely new secondary market. Retailers should ask themselves: why is our process so difficult that customers are willing to pay $34 to avoid it?
I never considered how much people buy and return. Paying $19.99 a month seems extraordinary; paying $19.99 a month for up to 12 items seems even more extraordinary. Do people buy with the objective of returning the item?
Who would have thought that we’d be willing to, let alone wanting to pay to have items returned?
Not sure this is going to have a meaningful impact given who will use it relative to all shoppers but for bigger/bulky items I see the appeal.
Looks to be more niche than a market service for many. Appealing to consumers who live in an apartment or condo, don’t have a car, or don’t want to deal with the difficulty of returning large bulky items.
Returns have always been a pain point for customers and it is not surprising to see services emerge that remove the hassle. Many people miss return windows simply because life gets in the way, not because they do not want the refund. When that friction is taken out, returns happen faster and more consistently.
From my experience, the real benefit for retailers is not who handles the return, but how quickly the item moves back into inventory. If third-party services can shorten the return cycle and reduce handling steps, they can add real value. The key is making sure they fit cleanly into existing operations without creating more cost or complexity.
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Just as online retailers made the purchasing side of shopping more convenient, outsourced return companies are now making the return side of shopping easier and faster. For what looks to be very reasonable fees, I think this model will grow exponentially in the future.
The real story here isn’t just consumer convenience; it’s inventory velocity. In a world where trends move fast, an item sitting in a ‘return limbo’ for 30 days is essentially lost capital.
Returns services are growing. However, they remain fairly niche as relatively few consumers want to pay for such a service. They are mostly used by wealthier consumers who do a lot of online purchasing.
If someone is so time stressed or unmotivated they want to pay people to do this for them
…well ,that’s between them and the provider. I don’t really see it as having much impact on retail, one way or the other. (I’ll hold off on the “once a nation of doers, America is doomed” talk , for now)
I think third-party return services will find a niche, but only a niche, rather than becoming a mass-adopted staple for most shoppers. There certainly are consumers who value convenience — particularly those with busy lifestyles or limited access to return options (no transportation, inflexible hours, etc.) — and they may lean into services that pick up packages, handle the reverse logistics, and remove the hassle of box, label, and line. But for the broader population, the vast majority of returns still happen through existing retailer channels (store drop-off, carrier drop-off, or curbside) because they’re free or low-cost and integrated into where the original purchase occurred. Most shoppers are still price sensitive about returns just as they are about purchases; given alternatives, many won’t pay extra for convenience unless the experience is truly frictionless and cost-justified.
For retailers, there are potential benefits to third-party return partners — but they’re subtle and context-dependent. Outsourcing the transactional burden of returns can reduce labor and processing costs, free up associate time for customer service, and shift some of the reverse logistic complexity (tracking, reconciliation, shipping) to a specialist operator. In theory, that can improve efficiency and even customer satisfaction when the service is well executed, because the brand doesn’t have to invest in every last touchpoint of the reverse flow. There’s also the upside of data enrichment if partners share insights about return reasons and patterns that can feed back into assortment, fit guides, or product content improvements.
That said, the drawbacks and risks matter. Retailers cede a degree of control over the brand experience in a moment that’s already a pain point for shoppers; if third-party performance is inconsistent, it can reflect poorly on the retailer itself. There’s also the danger of added cost layers that ultimately get passed back to consumers, which undermines value perception in a competitive marketplace where free and easy returns are increasingly table stakes. In my view, the stronger long-term play for most retailers is to optimize the return experience directly — through better product content, sizing tools, localized drop-off options, and friction-free in-store or buy-online-return-in-store execution — rather than outsourcing what should be a core part of the customer journey. Third-party services may augment that strategy in specific use cases, but they won’t replace the fundamentals of a retailer-owned return ecosystem.
There are pros and cons. Pros: Easier for some consumers to send back returns. May take this unwieldy process off the hands of the retailers. Cons: If it costs the consumer money to use these services, the consumer may just as well pay what retailers are inevitably going to charge for returns and restocking going forward. Does the retailer exercise any control over the quality of the process and th retailers facets the customer?
One thing I do know is that many consumers consider easy, hassle-free return policies an important part of the customer experience. Some retailers are tightening return policies, so those that keep returns easy and hassle-free will have a competitive advantage.
For those who don’t offer the easy, hassle-free returns, and for consumers who are willing to pay (which also means they can afford to pay), this service may have merit. Customers love convenience, and it often comes with a price they are willing to pay. But consider how long it has taken delivery services to find the model that works. The workable model for returns may not yet be perfected. (Or maybe ReturnQueen has cracked the code on third-party returns.)
Outsourcing returns can be a win-win. For consumers who value convenience and are willing to pay for it, it removes the hassle of returning items, while brands benefit from getting inventory back into circulation faster. That said, this model won’t make sense for every shopper or every product. Longer term, it’s interesting to think about how these services could tie back into inventory visibility, fraud checks, and recovery decisions.
Third-party return services offer legitimate operational benefits, including faster inventory recovery, improved data flow, and reduced congestion, particularly for retailers that partner strategically. ReturnQueen’s 24-hour verification and routing beats traditional 30-day cycles. But at its core, this is about processing failure more efficiently, not preventing it. Every return still represents a transaction that consumed resources in both directions. The risk is retailers getting comfortable optimizing reverse logistics instead of fixing what drives returns: poor sizing tools, misleading content, and weak product-customer matching.
I am the poster child for forgetting to return things and I have never used one of these services. I don’t know anyone who does. You don’t seem to hear much about them though so maybe that’s why.
We are seeing the ‘Uber-ization’ of the boring parts of life. Just as people pay for grocery delivery to save an hour, they are now paying to outsource the friction of returns. This suggests that the ‘return experience’ has become so painful that it has created an entirely new secondary market. Retailers should ask themselves: why is our process so difficult that customers are willing to pay $34 to avoid it?
I never considered how much people buy and return. Paying $19.99 a month seems extraordinary; paying $19.99 a month for up to 12 items seems even more extraordinary. Do people buy with the objective of returning the item?
Who would have thought that we’d be willing to, let alone wanting to pay to have items returned?
Not sure this is going to have a meaningful impact given who will use it relative to all shoppers but for bigger/bulky items I see the appeal.
Looks to be more niche than a market service for many. Appealing to consumers who live in an apartment or condo, don’t have a car, or don’t want to deal with the difficulty of returning large bulky items.
Returns have always been a pain point for customers and it is not surprising to see services emerge that remove the hassle. Many people miss return windows simply because life gets in the way, not because they do not want the refund. When that friction is taken out, returns happen faster and more consistently.
From my experience, the real benefit for retailers is not who handles the return, but how quickly the item moves back into inventory. If third-party services can shorten the return cycle and reduce handling steps, they can add real value. The key is making sure they fit cleanly into existing operations without creating more cost or complexity.