Perceived risk

Buying is held back by perceived financial, performance and social risk.

Trust and risk reduction Mainly on Product pages
Where it applies

Three of the eight page areas.

HomepageNot typical CategoryNot typical SearchNot typical ProductMainly here CartAlso applies CheckoutAlso applies Post-purchaseNot typical

Not usually a sitewide principle. See everything at work on Product pages

How to use it

Three ways to use it, and one to avoid.

  • Offer easy, low-effort returns with a full refund and a generous window.
  • State the returns offer beside the call to action.
  • Add guarantees, size and fit guides and delivery information at the point where the buying decision is made.
  • Avoid: presenting legal rights, such as the 14-day right to cancel, as a special feature of your offer.
What the research found

Lenient return policies increase purchases, with a smaller rise in returns.

Longer return windows were linked to fewer returns.

Bauer, and later Jacoby and Kaplan, set out the concept and its risk types. A meta-analysis of 21 papers found lenient return policies increased purchases, with a smaller but still significant increase in returns. Generous refunds and low-effort returns lifted purchases, and longer return windows were linked to fewer returns.

Key research

Five sources, each checked.

Last reviewed

Bauer (1960) Consumer Behavior as Risk Taking Dynamic Marketing for a Changing World (American Marketing Association) Read the source Jacoby & Kaplan (1972) The Components of Perceived Risk Proceedings of the Third Annual Conference of the Association for Consumer Research Read the source Janakiraman, Syrdal & Freling (2016)Meta-analysis The Effect of Return Policy Leniency on Consumer Purchase and Return Decisions: A Meta-analytic Review J. Retailing Read the source Forsythe & Shi (2003) Consumer patronage and risk perceptions in Internet shopping J. Business Research Read the source Petersen & Kumar (2015) Perceived Risk, Product Returns, and Optimal Resource Allocation: Evidence from a Field Experiment J. Marketing Research Read the source
Before you use it · UK law

Online shoppers already have a legal right to cancel within 14 days of delivery and rights over faulty goods. Presenting legal rights as a special feature of your offer is a banned practice under the DMCC Act 2024, so any guarantee must go beyond them.

This is simply a pointer to check, not legal advice. Seek legal advice before you put this principle into action.