Amazon has launched a pilot program installing self-serve return kiosks inside 21 Evergreen Goodwill of Northwest Washington thrift store locations in the Seattle region. The initiative represents an expansion of the e-commerce strategy to utilize third-party retailers to manage the high volume of online returns.
The new kiosks allow Amazon customers to drop off packages without having to use a shipping box. The process involves scanning a QR code provided by Amazon, packaging the item in a supplied plastic bag, and attaching a printed label before depositing the item into the unit. Returns through the kiosks are offered at no charge to the customer.
According to a review of the system, customers completing a return receive a 20% off coupon valid for an in-store Goodwill purchase. The kiosks also include a brief survey asking users about their typical shopping habits.
Strategic logistics and foot traffic
This partnership is the latest in a series of similar agreements Amazon has established with brick-and-mortar chains, including Kohl’s and Staples.
“We continue to improve our seamless returns experience and offer more convenient drop-off locations,” Amazon said in a statement to GeekWire.
The strategy benefits Amazon by reducing internal return-processing costs and utilizing existing retail space, mitigating the need to acquire new real estate. For Goodwill, the objective is to increase in-store traffic.
“When customers visit our stores to return packages, they also have the chance to donate or shop,” Alyssa Grigg, senior director of marketing and communications for Evergreen Goodwill told GeekWire.
She added that the network provides a practical drop-off solution for customers in more rural areas where return options may be limited.
A convenience strategy
Amazon reports that four out of five customers in the U.S. currently have a return drop-off point located within five miles of their residences. The expansion comes as the retail industry continues to navigate the high costs associated with e-commerce logistics.
Reports from organizations like the National Retail Federation indicate that the average return rate for online purchases stood at 16.9% in 2024. Total projected returns across the sector were estimated to reach $890 billion in 2024. While Amazon maintains a policy of free returns for most U.S. delivered items, other companies have implemented small fees to offset the mounting costs.
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