Are FedEx, UPS Looking Up To Amazon With Their Retailer Shipping Partnerships?

FedEx (FDX) has teamed up with Walgreens (WBA) to being offering customers an easier way to drop off e-commerce returns. Walgreens currently offers FedEx pickup and drop-off services at 14,000 of its stores, and is expanding its shipping service to now include returns for online merchants through FedEx.

FedEx joins Amazon, and UPS, which have partnered with Kohl’s and Michaels, respectively, for package returns. Both Kohl’s and Michaels said the shipping partnership was designed to bring more foot traffic into their stores by allowing customers to return their online purchases. Michaels also offers complete shipping service of any UPS package.

FedEx’s shipping program with Walgreens relies on online retailers to have its Returns Technology implemented to make returning a purchase at the retailer “more convenient.” FedEx will roll out the service in early November at thousands of Walgreens stores nationwide and before the holiday season.

Walgreens customers will be able to print a shipping label in-store or take their online retailer merchant code to a participating store location. Walgreens will print the return label in-store, preventing the need to print a label at home or receive one from the retailer via email.

“With the volume of e-commerce returns growing rapidly, it’s essential that retailers have an easy returns process that meets the expectations of today’s shoppers and carefully minds the growing costs,” Ryan P. Kelly, vice president of global e-commerce marketing at FedEx Services said.

“Shoppers prefer to take their online returns to a physical location, so by expanding FedEx Returns Technology to our broader convenience network with Walgreens, we’re enabling merchants and e-tailers to offer more locations for their customers to bring their returns,” he added.

With FedEx’s Returns Technology, which was launched in March 2018, customers can drop off their return, have it inspected, packed, and processed for a credit refund, which the company said is often faster than if they did it themselves.

Shares of FedEx stockwere up 0.79 percent as of 12:55 p.m. ET on Thursday while shares of Walgreens stock were up 1.24 percent at the same time.