Ulta Beauty has partnered with PayPal's Happy Returns to enhance the customer experience by offering a seamless return process. This collaboration will add Return Bar services to 1,300 Ulta Beauty brick-and-mortar locations, increasing the total number of Return Bar locations to over 5,000 by the end of 2022. PayPal acquired Happy Returns in May 2021, and this partnership aims to provide a more cost-effective and practical way for merchants to manage their reverse logistics.
Happy Returns is a leading software and reverse logistics company that offers a comprehensive returns solution. Its Return Bar network of over 4,000 locations allows shoppers to easily return or exchange items without printing or packaging and receive refunds immediately. With this partnership, Ulta Beauty customers can initiate their returns journey on the Happy Returns-hosted returns portal or the merchant's own return flow. At the end of the process, they receive a QR code, which they bring with their items — no box or receipt required — to the Return Bar at an Ulta Beauty store to complete the return.
PayPal's decision to acquire Happy Returns stems from its desire to play a more significant role in consumers' post-purchase experience and the returns process. The acquisition allows the payment platform to follow consumers from discovery through payments to returns and exchanges. Furthermore, PayPal is making the Happy Returns return and exchange software free for PayPal merchants, enabling them to access detailed reports of returns data and reply to customers' return-related questions in real-time.
The partnership between Ulta Beauty and PayPal's Happy Returns benefits customers by providing more options to complete returns and bringing new customers into stores. According to Ulta Beauty Chief Operating Officer Kecia Steelman, a pilot with Happy Returns brought higher traffic into stores and drove in-store engagement with customers. The deal with Ulta increases the total number of Happy Returns Return Bar locations to more than 5,000, making the service available within a 10-mile radius of 78% of U.S. consumers.
In conclusion, the partnership between Ulta Beauty and PayPal's Happy Returns aims to improve the customer experience by offering a convenient and efficient returns process. By expanding the number of Return Bar locations and providing free return and exchange software for PayPal merchants, this collaboration seeks to enhance the post-purchase experience for both customers and retailers.
