PayPal launches return shopping feature
PayPal is aiming to create a new free revenue stream through a return shopping feature for Shopify merchants.
Video Transcript
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RACHELLE AKUFFO: It's time for "Triple Play," the three stocks that we're watching in the final 30 minutes of trading. We have PayPal, Restaurant Brands International, and Micron on deck. And our very own Brooke DiPalma is joining us. So we'll start with my pick, which is PayPal Holdings, ticker PYPL.
Now, PayPal company Happy Returns announcing a return shopping feature really aimed at creating a new free revenue stream for its Shopify merchants, and of course, just in time for the holidays. So instead of sellers getting tied up trying to manage exchanges and creating some accounting headaches, return shopping treats the sale and return as two separate transactions.
Now Sanaz Hajizadeh, the director of product management at Happy Returns, wrote in the PayPal blog that, quote, "Now, more than ever, shoppers' reengagement and revenue retention are key priorities for merchants. It's not enough to make returns easy. Merchants need to account for every dollar and bring shoppers back at every stage. We've created a way to re-engage customers at a critical point in the shopper journey in an innovative way that keeps financial reporting simple."
Now, PayPal Holdings overall did lower expectations for Q4, and they have struggled year to date. The stock is up more than 60%. We're seeing inflation bite. And then of course Target's earning miss also weighing on some of these other retail related firms, Brooke.
BROOKE DIPALMA: Now, Rachelle, that reminded me a lot of Kohl's teaming up with Amazon. Ultimately, Kohl's really looking to bring in traffic here, but then actually getting a boost. Of course, they provide those discounts when you give that Amazon return. And then I know I, at least, end up making a purchase. So certainly hoping that this boosts some revenue for those merchants using Shopify, of course.
