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UPS Reverse Logistics Results in a 75% Repeat Customer Rate

Video Highlights

  • UPS Returns® provides Zappos customers a seamless shipping experience
  • Reverse logistics is key to improving customer service and repeat purchases

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Reverse Logistics Makes
Returns an Advantage

Zappos, an online retailer of shoes, apparel, and home goods, has built an empire by putting customers at the center of the shopping experience—and by fostering an internal employee culture that encourages fun.

What’s more, Zappos has boldly made returns a core part of their marketing strategy and subsequent success. It’s an area many online retailers overlook, and logistics makes it work.

Zappos customers can order any styles, colors, and sizes, try them on, and then return the ones they don’t want for free. In fact, the company encourages it. All shoppers have to do is use UPS Returns® on the Web and call a driver for pickup. UPS handles the rest.

This seamless shipping experience is one reason 75 percent of Zappos shoppers are return shoppers; after all, Zappos is all about an easy experience and instant gratification. That’s how the company reached $2 billion in sales in 2008.

"We want to make Zappos synonymous with service," says Sean Kim, Zappos’ director of business development. "Service is not an expense; it’s an investment."

And not only can customers easily return their purchases, Zappos can easily monitor the incoming returns and inbound goods from vendors, enabling them to plan staff accordingly and replenish stock for resale quickly.

"Our success in creating real customer experience has been made possible by creative people and innovative logistics," explains Zappos CEO Tony Hsieh. "With UPS we found similar cultural values and a joint passion for logistics."

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