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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.”