Merchandise Return Service

Reinaldo PadillaField Sales Representative

March 11, 2015

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Why a Consumer Returns a Product

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4 Reasons for Returns

1. Returned Merchandise- The product did not meet the consumer’s expectations (i.e. wrong size or color, not satisfied with quality, wrong product shipped, etc.) or they may have simply changed their minds about the purchase. These reasons are based on consumer desires.

2. Repairs- The product was broken or damaged

3. Recalls- The Merchant demands for the consumer to return the product due to a manufacturing defect

4. Recovery- The product is usually an old electronic device that is returned to either recover/recycle its useful parts

* Source: Colography Returns Market Survey and Accenture analysis-Assumes $185.5B total value of returned goods (NRF “2009 Consumer Returns in the Retail Industry”); average transaction value of $250 (~3x the average online transaction value of ~$75-80, as given by ComScore) and 40% of Returns occur by mail (Colography Returns Survey)

*More than 90% of products are returned because of reason 1 or 2

Why Consumer’s Desires Matter to the Merchant

The Consumer’s Return Experience Dramatically Affects Consumer Retention

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Impact of a negative returns experience

Impact of a positive returns experience

Source: Comscore

85%loss

95%Retention

85% of consumers WILL NOT do business with the merchant again if the

return process is not convenient

95% of consumers WILL do business with the merchant again if the

return process is convenient

Customer’s Needs

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Customers expect a Returns process that is…

• Convenient- Easy drop off

• Simple- Easy to understand Returns process

• Free or Low Cost

• Transparent- View the status of package

• Fast- Package reaches the Returns Center quickly for a prompt refund/credit

Business Needs

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• Visibility–Inventory control–Ability to forecast staffing –Reduce call center costs

• Detailed Reporting–Manage and forecast budgets–Identify anomalies in returns trends

• Speedy Return Process–Reduces customer call volume–Improves customer satisfaction

• Trust and Security–Enhances merchant image –Protection of merchandise–Identify fraud early

The USPS Solution

USPS Returns products address business and customer needs.

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• Lowest cost provider for small packages

• Convenient customer drop off

• Package Tracking

• Free Package Pickup at residence

• Pricing Flexibility

• No Fee to create and distribute labels to customers

USPS Returns Portfolio

Merchandise Return Service

Scan Based Payment Return Service•10,000 pieces/year/location

Full Network Parcel Return Service•50,000 pieces/year/location

•Ground only

Parcel Return Service•Partner offering

Merchandise Return Service (MRS)

• No minimum volume required• Commercial pricing• MRS permit fee and annual accounting fee• Addressed to Postage Due Unit

– Each piece weighed & rated to collect postage• Intelligent Mail package barcode for visibility

New cloud label format Jan 27, 2013 “Tracking” is free

Electronic Delivery Confirmation Fee

Merchandise Return Service

Priority MailFirst-Class Package Services

Media MailLibrary Mail

Special ServicesInsuranceRegistered MailCertified MailDelivery ConfirmationReturn Receipt for MerchandiseSpecial HandlingMailing AcknowledgementPickup on Demand Service

MRS Label Option – Click-N-Ship for Business

1. Permit holder creates the Electronic MRS label using ClickNShip for Business (Label Type)• includes in box• saves label image as pdf and emails to consumerhttps://www.usps.com/business/click-n-ship-for-business.htm

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MRS Label Options – Self-Service Label Tool

2. Permit holder posts a link from their website to USPS customized label tool. Customer prints their own label.

Test url:https://returns.usps.com/CreateLabel.aspx?MRSID=841&DisplayType=Customer&ShippingInfoIncluded=No

MRS Label Option – Call Center Label Tool

3. Customer calls the company’s Call Center- They use the USPS customized Call Center label tool and mail/email

the label to consumer

Test url: https://returns.usps.com/CreateLabel.aspx?MRSID=841&DisplayType=CallCenter&ShippingInfoIncluded=No

MRS Label Option - API

4. Application Program Interface (API) on their website to ‘call’ the USPS Returns Web Service so consumer can create labels

- Consumer stays on company’s website

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How Does PRS Full Network Work?

Customer Drops Off Return with USPS

Customer has two options …

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1. Request for Pickup at Home• Daily presence at 150 million

addresses• Free Package Pickup, including

Saturday

2. Drop-off at any Post Office• Over 33,000 retail outlets• Over 180,000 drop boxes

Visibility

Packages are scanned an average of 7-10 times

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Technical Assistance & Resources

Merchandise Return Service permit PS Form 3615CAPS account - http://caps.usps.gov Applications are on the CAPS siteMailer ID (Customer Gateway) Operations Integration SpecialistElectronic label setup Operations Integration SpecialistMRS processing questions blue.usps.gov/mrsMerchandise Return Service details DMM 505

Shipping tools forany size business

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USPS Web Tools® APIs can help you deliver seamless, simple customer service, whilesaving you time and money.

PRICE CALCULATORCalculate postage rates quickly and easily onlinefor domestic and international shipping.

TRACKING & DELIVERY INFORMATIONGet estimated delivery information and track packagesuntil they arrive with Tracking & Delivery information APIs.

ADDRESS INFORMATIONNever get another address or Zip CodeTMwrong again with our address standardization city and state lookup APIs.

PRINT SHIPPING LABELSPrint a complete shipping label with a trackingbarcode to track packages seamlessly with one of our PC Postage® partners

PACKAGE PICKUPStop going to the Post OfficeTMto drop of your packages. With the Package Pickup API, you can submit a pickup request and we’ll pick up your package for free.

SERVICE STANDARDS & COMMITMENTSGet estimates on delivery and receive guaranteedCommitments with certain service.

Additional USPS APIs

Thank you

Questions?