PUDO Inc (CSE:PDO) (OCTQB:PDPTF), North America's only carrier-neutral parcel pick-up and drop-off network, has revealed a 400% increase in the volume of returns designated parcels within its Canadian PUDOpoint Counters Network since the first week of July.
The company said return volumes grew incrementally as a result of the increased confidence of its major retailer, courier and SaaS (cloud-based software) partners.
Also driving higher volumes, PUDO added, was its ability to offer even more PUDOpoint Counters coast-to-coast, at which consumers can drop-off their parcels for return, as high-volume courier companies can stage parcels at the community hub level.
'Increased returns volume was a longer-term goal of the Company as we were building out the Network and pilot testing for partners these past few years," PUDO CEO Frank Coccia in a statement.
"The key to returns logistics, both for us and for our retail partners, is consolidation across a vast Network. With a critical mass of PUDOpoint Counters operating efficiently and profitably as parcel pick-up locations, we can consolidate and bulk return ship to regional sorting for domestic or international return, both economically and expeditiously, across this same Network."
The company said new PUDOpoint Counters locations are activated weekly as it is experiencing steady, incremental growth across all core revenue streams.
About 60% of PUDO's returns parcel traffic is headed back overseas to the UK, where partner retailers will undertake the process of assessment for re-sale or re-direct, PUDO said.
"The returns portion of e-commerce is unsustainably expensive for online retailers, and can seriously offset or even eclipse revenues, so it is very gratifying to know that while we are earning healthy margins ourselves, we are helping our retail partners reduce their return costs and hasten return delivery times so that they can better manage their inventory in-season," Coccia noted.
E-commerce in North America
In North America alone, e-commerce is predicted to exceed US$827 billion by the end of 2020, and globally the sector is predicted to exceed US$4 trillion. This growth, in turn, generates more of the so-called last-mile gridlock that plagues the e-commerce sector, and greater opportunity for PUDO to resolve it.
E-commerce returns, together with failed first attempt deliveries and porch piracy, are the three major causes of last-mile gridlock.
"As we expand our PUDOpoint Counters Network in the United States, and introduce greater returns volumes, we will once again lean heavily on our experiences here in Canada -- one of the most geographically, economically, and culturally challenging logistics markets in the world -- to deliver substantial cost and time savings for our partners and customers, and generate revenue exponentially, for the Company,” PUDO's CEO concluded.
Contact the author: email@example.com
Follow him on Twitter @PatrickMGraham