Australia Post has taken a 25% stake in logistics and returns management startup Shiperoo as part of a new strategic agreement.
The investment showcases the organisations’ shared commitment to making the process of returning purchases easier and more efficient, as well as aiding environmental sustainability.
According to last year’s Australia Post Inside Australian Online Shopping eCommerce Industry Report, consumers made online purchases worth AU $63.6 billion in 2023.
Shiperoo founding partner Nishan Wijemanne explained that the online shopping boom has given rise to exponenial growth in returns which has become 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 said.
“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.”
Across all retail, the average rate for returns is 17%, but for fashion/apparel online purchases – which Australians spent AU$9.6 billion on in 2023 – the returns rate rises to 30% (or roughly one-in-three items bought).
Shiperoo, the brainchild of supply chain technology entrepreneurs Nishan Wijemanne and Rizan Mawzoon, is determined to revolutionise the retail returns sector.
It has invested AU $30 million in AI-powered software and state-of-the-art automation to enhance operational efficiency for retailers as well as better customer experiences.
Wijemanne said that the business and Australia Post share a passion for advancing sustainability and preventing unnecessary waste.
“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,” he said.
“We’re also seeking efficiencies and cost-savings for both physical retailers and eCommerce retailers, as well as environmental considerations through reCommerce.
Australia Post executive general manager, parcel, post and eCommerce services, Gary Starr said 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 competion grows,” he said.
“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.
“ReCommerce and the circular economy are surging internationally, transforming the retail landscape. Shiperoo is well placed to help Australian businesses embrace these sustainable practices and the economic advantages of buying and selling pre-loved items.”