How LoadUp Enterprise Can Help Retailers Affected by California Mattress Recycling Law AB 187

As a leader in environmental protection, the state of California expanded its current mattress recycling laws to also include futon mattress recycling in January 2020.

Starting January 2021, businesses that manufacture and/or distribute mattresses, futons, box springs, adjustable bed frames, and foundations to end-users living in California will be required to offer free pickup and recycling of the old item(s) at no additional charge to the customer.

This amendment poses a potential problem to nationwide mattress, futon, and furniture e-commerce companies serving customers in California, as it requires the company to pay out-of-pocket for removal and recycling of the old items.

LoadUp has developed a new shopping cart integration for nationwide e-commerce companies to help offset this potential loss. Our API integration seamlessly connects to mattress and furniture retailer's online checkouts to provide convenient removal and recycling [services by LoadUp] to customers while simultaneously growing profits.

🛒 View Shopping Cart Integration Demo: Check out LoadUp Enterprise demo integrations to see a live example of how to incorporate the shopping cart API on your website. VIEW DEMOS ❯

California's original Mattress Recovery Law, SB 254, required manufacturers, renovators, and retailers to provide consumers in the state with the option to have their used mattress either:

1. Picked up at the time of delivery. (or)
2. To provide them with a free dropoff opportunity for mattress recycling.

Both of these options are to be provided at no cost to the consumer.

Let's take a deeper look at SB 254.

⚖️ FYI: The California law may not impact all eCommerce retailers.
It’s up to each retailer to find out how the current and upcoming legislation affects them individually. This guide is supplemental to the actual law, which you can view in a new tab here.

Original Law: SB 254

California's "Used Mattress Recovery and Recycling Act" was enacted under SB 254 on September 27, 2013. The bill authorized the creation of a mattress recycling organization by a qualified industry association, which would develop, implement, and administer a mattress recycling program.

Upon creation, this mattress recycling program was named the "Mattress Recycling Council", and required manufacturers, retailers, and renovators of mattresses to register with the MRC on or before January 1, 2015.

📖 What does this mean? This bill requires mattress companies to provide California consumers with the option to have the old mattress picked up for eco-friendly disposal at no cost to them at the time the new one is delivered or to provide an opportunity for free drop-off of a used mattress.

Additions Made to Law: SB 254

On January 1, 2020, California expanded its mattress recycling program to include futons, requiring that manufacturers, distributors, and retailers selling futons to California end-users register with the Mattress Recycling Council, as well as collect a $10.50 fee from the consumer on each futon sold. All fees collected by the company must be remitted to MRC monthly.

SB 254 also required California retailers delivering new mattresses to a California consumer to offer free pick up and recycling of the used mattress at the time of delivery. However, this requirement initially offered two exemptions:

• The old mattress is contaminated.
• The new mattress was purchased online and delivered by a common carrier.

Exemptions mean CA law will now affect online retailers!

These exceptions to the rules were beneficial to online retailers since it didn't require them to provide free pick up and recycling services to their customers. However, these exceptions will be eliminated by an amendment to the law, AB 187, which goes into effect January 1, 2021.

Amendments on the Horizon: AB 187

Beginning January 1, 2021, California law SB 254 will be amended by AB 187. This amendment will require any company that sells a mattress or futon to a customer living in California to offer free pick up and recycling of the old item at no additional charge to the customer within 30 days of delivery of the new product.

Further, the amendment lifted the exception of online purchases and common carrier deliveries. That means that all e-commerce companies selling either a mattress or a futon to a California end-user must offer and/or provide removal and recycling at their own expense.

Being required by law to provide California end-users free mattress and futon pickup and recycling services could potentially result in revenue losses in that region, which would also have a negative impact on your profit margin.

Avg. cost to provide pick-up and recycling services to customers is between $85 and $100.

To fully understand the financial impact this law will have on your e-commerce company, let's do some quick math.

Let's pretend that in one day, you receive 100 new online mattress or futon orders from customers residing in California. By law, you would be required to provide free pick up and recycling services within 30 days of delivery of the new product, resulting in your company paying between $8,500 - $10,000 out-of-pocket to provide these services to California customers at no cost to them.

That's a huge loss. Selling 100 new mattresses in California would cut $10k out of your $50k profit. How would you recoup this lost money?

What if you could recoup those losses without raising your prices to California residents, and without raising prices nationwide?

With LoadUp's seamless API integration for e-commerce retailers, you'll not only be able to offset potential losses but will also become more competitive in your industry by offering a convenient add-on service that not only gets you ahead of the law but enables you to offset your losses by charging for those same conveniences to your customers outside of California.

✔️ Boost Revenue and Offset Losses With LoadUp

LoadUp offers removal and eco-friendly disposal services to a nationwide market. We are a technologically-driven company that uses proprietary technology to provide our partners with an easy and affordable white-label API integration that allows them to provide additional convenient services to all their customers from within their e-commerce booking system.

✔️ Offer Customers Additional Services with API Integrations

As our partner using our integration, you'll be able to offer the following packaged service options to your customers, right through your e-commerce website:

• New item setup
• Old item disassembly + disposal
• New item setup + old item removal/disposal

By partnering with LoadUp, you will essentially be expanding your company by providing services that most customers desire. Before you consider raising your prices to offset your costs, you can actually use our API to profit from selling additional conveniences to your customers nationwide, offsetting your losses in California.

Reduce Your Return Rate by offering old item removal services with LoadUp Enterprise today!

How Our Shopping Cart Integration Works

Our integration works seamlessly with your established e-commerce website and will appear within your add-ons section at the time of purchase. You can also use this opportunity to push popular add-ons that you offer directly to your customers.

Step 1. Integrate Shopping Cart API Store

LoadUp services, such as mattress or furniture haul away, are added to your eCommerce store just like any other product, with a specific SKU provided by LoadUp. The look, feel, marketing, and price of the service are entirely controlled by you and your team.

Step 2. Customer Places Order

When a customer books an order where a LoadUp product is included, LoadUp creates a Schedule Request and sends an email to the customer to schedule their service. That email can include your branding if you provide it to us.

Step 3. Customer Books Old Item Removal

The customer schedules their service via a link in the email and LoadUp executes the service like any other order you may have booked with us.

Step 4. LoadUp Takes Care of the Rest

LoadUp handles all the customer service and scheduling for you, so there's no need to hire additional people to spend more time dealing directly with customers.

Let’s get into the mind of a customer. If you’ve ever had to assemble a bed frame or other piece of furniture yourself, you know that it’s a time-consuming hassle. The directions are confusing, it takes a good deal of strength and effort, and you often need your own tools.

On the flip side, when you purchase a large item to replace an old one, you're stuck with the task of trying to get rid of it yourself, which can be an expensive and arduous ordeal.

Today’s consumer is all about convenience. Consumers don't only shop around for the best deal, but they also seek out the most convenient shopping experience possible.

✔️ Offering Convenience as a Profit-Driven Add-On

Imagine how much more attractive your business will be to them when they discover they can add additional services like setup, disassembly, removal, and disposal with one click, right from your website!

You're more likely to make the sale when you address the customer's potential problems before they become actual problems.

Historically, convenience has been a successful selling point. A 2002 study published by UXMagazine revealed that convenience orientation - the preference for convenient services and goods - had a significant impact on a consumer's purchasing decisions. Furthermore, the perception of convenience by the customer played a major role in the way that they evaluated (or reviewed) their shopping experience and the company.

Five years later, a separate study found that convenience was the most relevant factor when using a mobile device for online shopping.

In other words, businesses offering additional conveniences are more likely to land a sale than those who aren’t.

The convenience isn’t just the service itself. It’s way more than that. Partnering with LoadUp and purchasing the API integration has many benefits, not only to the customer but to your company, as well.

✔️ Our Shopping Cart Add-on API Benefits Include:

• Seamlessly integrates into your e-commerce website, whether you're using GraphQL, Big Commerce, Shopify or WooCommerce.
• Promotes additional upselling opportunities when listed as an "add-on".
• Eliminates the need for the customer to set up furniture themselves.
• Eliminates the need for the customer to have to do more research to find someone to haul away their old product and have to pay yet another company for an additional service that you provide to them through us.
• Helps you remain compliant with current California law and puts you ahead of upcoming amendments.
• Eliminates the need to hire more customer service representatives to handle incoming calls from customers as well as the need to deal with scheduling logistics. We take care of all customer communications and scheduling regarding pick up and disposal for you.
• Allows your company to promote that you are eco-friendly since LoadUp utilizes the most eco-friendly methods available.

LoadUp's Available Shopping Cart Integrations

1. In Cart Add-On Demo Integration
2. Checkbox/Pop-Up Demo Integration

Based on consumer trends in e-commerce markets, offering additional convenient services to your customers will put you ahead of the competition while also allowing you to remain compliant with the upcoming amendments to California disposal and recycling laws.

📱 For more information about our API shopping cart integration, or to become a LoadUp Partner, please give us a call at (678) 210-8204.