Return-fee fairness
Who pays for a return strongly shapes later spending, because customers treat a return fee as unfair.
Four of the eight page areas.
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.
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.
Two sources, each checked.
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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.