It seems obvious that a return/exchange policy is necessary. You never know if something will stand up to your expectations; as a customer, knowing the return policy is a bit like an escape route. You hope that you won’t, but should you need it, you want to know where the exits are and how to access them.
But, while serving the customer, ultimately, the biggest winner is the business: “return policies have [become] as much a marketing tool as a retail standard,” — NYTimes
Well, overall, a return policy is design to maximize profits. And, perhaps surprisingly, there are several ways to earn this result.
Obviously, the ideal is that customers would buy only what they want, and be pleased with the product! Maximizing that is, of course, a priority; but, there is more to it.
The rate of returns for online shopping is higher than "bricks-and-mortar" stores, and this is especially true for clothing & shoe categories. We will continue to see more and more "fit guides" and special apps to determine correct fit; it's worth it for retailers to develop tools that will help us shoppers get it right the first time.
Sometimes, a retailer will have limitations on what can be returned (like, no returns for items on sale) or online, items that might require a "restocking fee". These limits may deter someone who is on the fence from returning.
While an increased scope (i.e. what you can return) increases returns, the opposite is true for timeline: the longer the window to return, the less likely a customer is to return it! A University of Texas-Dallas study found that if a return window is longer (more like 90 days, instead of say, 5 days), the rate of returns goes down. Customers get used to having the thing around, they forget about it, or at a point just can't be bothered.
The right return policy can not only deter returns, but actually increase sales: a psychological trick that we don't anticipate at all!
If you think, I can always return this, it waaay lowers the barrier to buying it. Why not just go for it now becomes the mantra of store & customer alike. But is there truly such a thing as a hassle-less return? Do we really account for our time, energy, gas, and other activities we could be doing? Do we account for our own affinities & motivations?
One friend I have is delighted to run errands and has no problem with purchasing goods only to return them later. But me? No thanks. Dragging me back to a store to return an item takes A LOT, and if it is a lower price, I often put it off until it is too late or I just don't care anymore.
Online retailers are working hard to find truly low-hassle solutions for returns, to create the best of both worlds. Some clothing stores or big operators will include return labels and even account for returns when designing their packaging, so that it can be re-used on the way back.
Separating the returns counter from the checkout means that bright-eyed customers with their wallets open do not have to rub shoulders with disgruntled people returning the very thing they might plan on purchasing.
If the checkout process is swift & easy, the only memory you will likely have (regarding how it would be to return something) is that quick & efficient process. The reality — if you've ever been to the Best Buy exchange line, you know — is not quite the same!
Next week, we'll explore what it looks like from the customer side: how do we make choices to set ourselves up well in case a product purchase is a mistake, and how to advocate for ourselves if things go awry. See you then!
Mystery novels have often appealed to people with jobs that are never fully resolved (doctors, pastors, social workers). In this cultural era of many-problems-few-resolutions, reading a good mystery can be a refreshing break.
Our 12-year old daughter is the most avid, prolific reader I know! We teamed up to create a list of mysteries for all ages of independent readers. The recos below are listed with increasing age levels in mind, but no specific age parameters (as a mature, well-read, near-teen, she has read up to Agatha Christie on this list).
Our 11-year old computer is showing creaky signs of age, just about ready to go to sleep (and never wake up). But, we feel that it has served us well. When I compare it to other expenses over the years, the laptop is — at about a $100/year investment — one of our best value-for-dollar belongings.
When shopping for items like this, how do we choose well? How do we discern what brand/style/variety is built to last? Or, how do we determine even if “built to last” is relevant to the purchase?