Box-Free, Receipt-Free Returns for Online Retailers Are Coming to Ulta Beauty

Returns continue to be a point of friction in an otherwise frictionless ecommerce experience, so fin-tech company PayPal is expanding its Happy Returns Return Bar concept to the retailer Ulta Beauty. With the addition of 1300 U.S. Ulta stores, PayPal’s Return Bars will be in more than 5000 locations by the end of 2022. As a result, PayPal said 78% of Americans will live within 10 miles of its Return Bars. When a customer wants to make a return using the service, they must first get a QR code from the Happy Returns website or the participating merchant. They then bring both the item and the QR code to the Return Bar. No boxes or receipts are necessary. According to a statement, returns from multiple retailers are subsequently “aggregated into a reusable tote, reducing shipping costs and making the process more sustainable by eliminating cardboard and lowering carbon emissions.” Online retailers accepting returns through the service include Betabrand, Draper James and Everlane. Return bars are also located in retailers like Staples, FedEx Office and Cost Plus World Market. "Our partnership with Ulta Beauty widens our in-person drop off network and gives online shoppers more options to complete returns—Return Bars bring new customers into stores and give merchants a more cost-effective and practical way to manage their reverse logistics,” said David Sobie, vp of Happy Returns by PayPal, in a statement. In her own statement, Kecia Steelman, chief operating officer, Ulta Beauty, pointed to the possibility of “increased store traffic and in-store engagement.” PayPal also announced it is making the Happy Returns software available to its PayPal merchant customers at no additional cost. (PayPal acquired Happy Returns in 2021.) According to PayPal data, average return rates have increased to more than 20% thanks to the ecommerce boost during the pandemic—and over 70% of consumers would opt for box-free, label-free drop-off rather than returning an online order by mail. "As return volumes continue to increase, this is a crucial time for merchants to implement efficient and cost-effective solutions that better equip them to manage the growing role returns play in retail," Sobie added. Customer experience platform Narvar and mall operator Simon have also teamed up to offer similar functionality for brands like Gap and Levi’s. Most Retailers Still Struggle to Meet Customer Expectations for Hybrid Shopping