Return-fee fairness

Who pays for a return strongly shapes later spending, because customers treat a return fee as unfair.

Where it applies

Four of the eight page areas.

How to use it

Three ways to use it, and one to avoid.

  • Offer free returns where margin allows.
  • Before introducing fees, compare the long-run spend of customers charged for returns against those not charged.
  • Make the returns route easy to find after purchase.
  • Avoid: charging return costs for faulty or misdescribed goods, which the trader must bear.
What the research found

Paying for a return cut later spending sharply. The figures are not benchmarks.

Customers who paid for their own return cut their spending at that retailer by 75-100% over two years.

Bower and Maxham linked surveys to real customer spending over four years. Customers who paid for their own return cut spending at that retailer by 75-100% over the next two years, while free-return customers raised it sharply. Fees depended on who was blamed and the data predate today's norms, so do not treat the figures as benchmarks.

Key research

Two sources, each checked.

Last reviewed

Before you use it · UK law

For faulty or misdescribed goods the trader must bear return costs.

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