Free Returns, Return Shipping Paid

Introduction

Product returns are inevitable for an e-commerce business. Trying to avoid costly returns with a clunky returns policy will result in greater losses. So, a simple and transparent return policy is beneficial for an e-commerce business.

PiP iT Global Blog - Free Returns Pay, Paid Returns Cost

High return rate in e-commerce

Research shows that at least 30% of all e-commerce orders end up being returned, compared to just 8.89% of physical store sales. Factors contributing to this higher figure include:

Inaccurate / unclear product information
Incorrect products sent
Products damaged or not suitable for use
Unwanted gifts
Retours frauduleux

UPS data suggest that the cost of handling returns may vary from 20% to 65% of the total cost of goods sold. But a simpler return policy can reduce that figure.

Value in better returns

A study published in the Journal of Marketing showed that stores that offer free returns see customers spending up to 457% more than before the return. The reverse was also true, with repeat purchase expenses falling from 75% to 100% for customers who were asked to pay return shipping costs. A simple and free return policy clearly pays off by improving future sales.