Australia Post has announced it has taken a 25 per cent stake in an industry shipping start-up as it continues pursuing perfect fulfilment.
The national carrier has acquired the stake in Shiperoo as part of an exciting new strategic agreement.
The investment showcases the pair’s shared commitment to making the process of returning purchases easier and more efficient while also aiding environmental sustainability.
Last year’s Australia Post Inside Australian Online Shopping eCommerce Industry Report says customers made approximately $63.6 billion worth of online purchases in 2023, with Shiperoo founding partner Nishan Wijemanne saying this boom has given rise to exponential growth in returns, making it “retail’s largest unaddressed issue”.
“Returns are a retail pain point on a number of fronts. Difficult returns are a clear barrier to purchase for modern consumers, who often need to access a selection of similar items before deciding what will suit their needs,” he says.
“Shiperoo was born from the desire to turn the pipe dream of efficient, cost-effective returns management into a reality, utilising automated multi-channel fulfilment facilities that are powered by market-leading robotic technology and AI.
“This includes rapid fulfilment execution for same-day shipping readiness, seamless returns for consumers through Australia Post’s network, efficient returns processing for retailers, and the integration of managed returns into the circular economy through reCommerce opportunities.
“To achieve this, we have developed a returns process that’s designed to be an end-to-end solution – at the consumers’ end, we solve their logistical nightmare of sending back returned items, while for the retailer, we can expedite the categorisation, quality assessment and decision-making regarding restocking, refurbishing or recycling.
“Our facilities enhance inventory management to reduce the likelihood of overstock or understock situations, and the result is a ‘white glove’ returns-management experience. We’re also helping minimise the impact of the overall impact of returns on retailers’ bottom line.”
With the average rate for returns being 17 per cent across all retail, in fashion or online apparel purchases this rises to 30 per cent. Shiperoo has invested around $30 million in AI-powered software and automation to enhance the returns process for all involved, with the agreement with Australia Post now allowing the pair to take this to the next level.
“Our mission is to address the growing challenges of returns, end-of-season stock, and excess inventory, all while preventing waste from ending up in landfill – which provides a ‘win-win’ for retailers, supply chain players, consumers and, ultimately the environment,” Wijemanne says.
Australia Post executive general manager of parcel, post and eCommerce services Gary Starr says the investment is part of Australia Post’s focus on being part of each step of the retail journey.
“Australia Post has decided to invest in Shiperoo as part of our focus on eCommerce services for Australian retailers and customers as competition grows,” he says.
“We recognise the importance of supporting state-of-the-art, contemporary fulfilment services to meet the changing needs of customers.
“We’re also deeply passionate about sustainability. Our partnership will aim to help reduce waste caused by pre-owned goods ending up in landfill through their returns and reCommerce expertise and ambition.”
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