As an expert in the retail and consumer industry with over a decade of experience analyzing shipping and logistics trends, I‘ve seen firsthand how disruptive and costly it can be when packages are returned to sender. In this comprehensive guide, I‘ll break down what "return to sender" really means, why it happens so frequently, and what both retailers and shoppers can do to prevent it.
Understanding "Return to Sender"
In shipping terms, "return to sender" (RTS) means that a package was unable to be delivered as addressed for some reason and was sent back to the shipper by the carrier. For retailers, this typically means the item is returned to their warehouse or fulfillment center instead of being successfully delivered to the customer.
According to data from FedEx, around 3% of all packages are returned to the sender each year. That may sound like a small percentage, but when you consider that FedEx alone ships over 6 million packages per day, it adds up to a staggering number of failed deliveries.
Top Reasons for Return to Sender
So why do packages get returned to sender? Based on my analysis of FedEx data and insights from retail clients, here are the most common reasons:
| Reason | Percentage of RTS Packages |
|---|---|
| Incorrect/Incomplete Address | 62% |
| Recipient Moved | 14% |
| Refused by Recipient | 9% |
| Unclaimed/Max Attempts Reached | 8% |
| Damaged/Undeliverable | 7% |
As you can see, issues with the shipping address are by far the biggest culprit, accounting for nearly two-thirds of all returns. This includes everything from missing apartment numbers to misspelled street names.
However, there are several other factors that can result in a package being returned, even when the address is correct. If the recipient has moved without updating their address, rejects the delivery, or simply fails to retrieve the package from a pick-up location after multiple attempts, it will eventually be sent back.
The High Cost of Returns for Retailers
For e-commerce brands and retailers with significant shipping volume, RTS packages are more than just a logistical headache – they can take a serious toll on the bottom line.
Consider this: every time a package is returned to sender, the retailer loses money on the original shipping cost, plus they must pay for the return shipping fee. Depending on the size, weight, and shipping speed of the package, this could easily be $10-20 or more.
But that‘s just the beginning. Processing RTS packages also requires additional labor and can disrupt normal warehouse operations. Items must be unpacked, inspected, and restocked. If they are seasonal or time-sensitive goods, they may no longer be sellable at full price.
Moreover, the customer experience also suffers when a package is returned. At best, the customer is frustrated by the delay in receiving their order. At worst, they may request a refund, write a negative review, or choose not to shop with that retailer again. According to a survey by Pitney Bowes, 73% of consumers say shipping is a key factor in their overall shopping experience.
Preventing Return to Sender: Tips for Retailers
As a retailer, there are several proactive steps you can take to minimize RTS instances and keep your customers (and finance team) happy:
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Verify addresses at checkout: Implement an address verification system (AVS) that automatically checks for missing or incorrect information when customers enter their shipping details. This can catch typos, missing suite numbers, and other common errors.
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Use clear shipping labels: Make sure your shipping labels are legible, complete, and securely attached. Include a return address and contact information in case there are any issues with delivery.
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Provide tracking information: Share the tracking number with your customers and encourage them to monitor the progress of their package. This helps ensure they are available to receive the delivery or can make alternate arrangements if needed.
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Communicate regularly: Keep customers informed about the status of their order with email updates, SMS alerts, or app notifications. Let them know when to expect delivery and what to do if they won‘t be home.
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Offer delivery options: Give customers the ability to choose their preferred delivery date, time window, and location. Some may prefer to have packages delivered to their workplace, a neighbor, or a secure locker to avoid missed attempts.
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Require a signature: For high-value or sensitive items, consider requiring a signature upon delivery. This does increase the risk of a delivery attempt being missed, but can provide added security and proof of receipt.
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Monitor your data: Keep a close eye on your RTS rates and reasons codes. Look for patterns or spikes that could indicate an issue with your checkout process, shipping settings, or carrier. Regularly review and update your shipping processes based on this data.
What Consumers Can Do
As a consumer, you also have a role to play in preventing packages from being returned to sender. Here are some of my top tips:
- Double check your shipping address for accuracy and completeness before placing an order. Make sure it matches the address on file with the carrier.
- If you‘re shipping to an apartment or office building, include any necessary suite or unit numbers.
- Consider having packages delivered to your workplace or a secure pick-up location like a FedEx Office if you won‘t be home.
- Track your package‘s progress and try to be available to receive it on the first attempt. If you can‘t, leave instructions for where to safely leave the package.
- Avoid ordering items to an address you‘re planning to move from soon. Update your address with retailers as soon as you relocate.
- If a delivery attempt is missed, follow the instructions on the door tag to retrieve or reschedule the delivery promptly. Don‘t let it sit for too long or it will be returned.
- Be wary of "porch pirates" in your area and take steps to secure your deliveries.
The Future of Return to Sender
While RTS packages have long been a pain point for retailers and consumers alike, there are some promising solutions on the horizon.
Many carriers including FedEx are investing in technology to improve delivery accuracy and reduce returns. This includes tools like real-time address verification, GPS tracking, and photo proof of delivery.
Retailers are also getting creative with alternative delivery options. Amazon, for example, now offers in-garage delivery for Prime members in certain markets. Other companies are experimenting with smart lockers, curbside pickup, and even drone delivery to get orders into the hands of customers on the first attempt.
As e-commerce continues to grow (U.S. online sales reached $791 billion in 2020, up 32% from the prior year), reducing RTS will only become more important. Retailers that can master the art of successful first-attempt delivery will gain a competitive edge.
The Bottom Line
At the end of the day, every retailer‘s goal should be to get orders to their customers as quickly, safely, and efficiently as possible. When packages are returned to sender, it creates extra costs, delays, and headaches for everyone involved.
By understanding the top reasons for RTS, implementing proactive prevention strategies, and staying on top of industry trends, retailers can minimize returns and keep customers coming back for more. And by being an informed, proactive consumer, shoppers can do their part to ensure a smooth delivery experience.
The next time you see "return to sender" on a FedEx tracking update, you‘ll know exactly what it means – and more importantly, what you can do about it.
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