Olabi Sutras

Free Returns Aren’t Free: Who Really Pays for the Convenience

For customers, returning a product is simple. They order something, decide it isn't right, and send it back without paying an additional fee. The experience feels convenient and risk-free. For retailers, however, the process is far more complicated. A returned product may need to be collected, transported, inspected, repackaged, processed, and returned to sale. Some products can be resold immediately, while others may require markdowns or become unsellable altogether. Every step adds cost. Yet free returns have become an important part of the shopping experience. Customers increasingly expect a straightforward returns policy, and making returns difficult can discourage purchases in [...]