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PayPal Announces 'Return Shipping on Us' to help drive online retail in Canada


News provided by

PayPal

May 09, 2016, 06:00 ET

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Majority (86%) of Canadians said free return shipping services would make them more likely to shop from a website

TORONTO, May 9, 2016 /CNW/ - Today, PayPal announced the launch of a new Return Shipping on Us service in Canada. By directly addressing a concern of online shoppers, this service aims to boost consumer confidence and help drive online retail by refunding return shipping costs on eligible online purchases within Canada and around the world.

A study from Ipsos reports that 40 per cent of Canadians are worried about ordering the wrong item online and not being able to return it. A further 27 per cent said they have been forced to pay for shipping back items in the past year, with the majority (65%) saying it cost them more than $10 each time.

"Canadians are warming up to online shopping, but uncertainty around returns can make people think twice about clicking the buy button," says Kerry Reynolds, Head of Consumer Marketing, PayPal Canada. "With our new service, we are providing people with an option to return items purchased online that don't fit or match their expectations."

Return Shipping on Us also benefits Canadians who shop from international websites that they might not be familiar with. PayPal's Cross-Border Consumer Research 2015 revealed that 10.7 million Canadians engage in cross-border online shopping, with 38 per cent saying that if free return shipping was offered, they would be more likely to buy online from another country. A quarter of Canadians who shop from international websites, and nearly 40 per cent who do not shop cross-border, mentioned that return shipping costs are holding them back.

"Canadian e-commerce is expected to grow by 8 per cent in 2016 to $34.5 billion*. With online retail competition heating up locally and internationally for Canadian businesses, Return Shipping on Us is a competitive differentiator," Reynolds added. "Our investment in this service is a potential revenue driver for smaller online sellers who can't afford to offer free returns to their customers."

PayPal now offers Return Shipping on Us in nearly 40 countries. In Canada, the service allows up to 10 refunds on eligible online purchases per calendar year. Canadian shoppers who are unsatisfied with their purchase and have opted-in to the service will now be able to request a refund on return shipping costs within two weeks of mailing the return.

Return Shipping on Us is available in Canada today. PayPal users need to register for the service on: www.paypal.ca/returnshipping.

Return Shipping on Us Terms and Conditions: Limitations apply. This is an exclusive offer offered to eligible PayPal account owners. With this service, users are eligible for up to 10 refunds on return shipping costs per calendar year and may receive refunds of up to $30 CAD per claim. Full terms here: www.paypal.com/ca/returnshippingterms.

*Source: PayPal Cross-Border Consumer Research 2015.

Survey Methodology
A sample of 1,007 Canadians from Ipsos' online panel was interviewed online between April 18 and April 19, 2016. The precision of Ipsos online polls is measured using a credibility interval.  In this case, the poll is accurate to within +/ - 3.5 percentage points, 19 times out of 20, had all Canadian adults been polled.

About PayPal
At PayPal (Nasdaq: PYPL), we put people at the center of everything we do. Founded in 1998, we continue to be at the forefront of the digital payments revolution. PayPal gives people better ways to manage and move their money, offering them choice and flexibility in how they are able to send money, pay or get paid. We operate an open, secure and technology agnostic payments platform that businesses use to securely transact with their customers online and increasingly on mobile devices. In 2015, 28% of the 4.9 billion payments we processed were made on a mobile device. With our 184 million active customer accounts, PayPal is a truly global payments platform that is available to people in more than 200 markets, allowing customers to get paid in more than 100 currencies, withdraw funds to their bank accounts in 57 currencies and hold balances in their PayPal accounts in 26 currencies. For more information on PayPal, visit www.paypal.ca.

SOURCE PayPal

Image with caption: "PayPal Canada launches Return Shipping on Us. (CNW Group/PayPal)". Image available at: http://photos.newswire.ca/images/download/20160509_C3261_PHOTO_EN_684903.jpg

Media Contacts: Malini Mitra, PayPal Canada, 416.860.6240, [email protected]; Sarah Blazak, MSLGROUP, 416.847.1309, [email protected]

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