Originally Posted by
Edwin Santos
I understand your point of view, especially from the ground view. But most larger, sophisticated retailers view this issue from a high level and the thinking in support of a liberal return policy is as follows:
1. A meaningful number of customers buy multiples with the intention of returning the unused product, and never get around to doing the return - Retailer wins
2. A trip back to the store to do the return results in some % of customers making another purchase now that they're there - Retailer wins
3. Making it painless to return things makes the customer buy if in doubt i.e. "I'm not sure, but I'll just buy it anyway because I can always return it" - Retailer wins
4. A trip back to the store for a return brings the customer back on the premises. This is what they also spend $$ in advertising to do - get you in the store - Retailer wins
5. The studies show that customers are creatures of habit and the no-hassle policy of returns results in relationship acquisition - Retailer wins
6. A retailer who folds his arms, shakes his head and says no, I won't take this return back, maybe lecturing the customer in the process, will accomplish the opposite of all these things, in other words - Retailer wins one battle, but loses the relationship, hence the war
Another note, HD is very clever, if you sign up for their credit card, in addition to the sign up perks they offer, you get one year to return an item. So guess what, in this case if that feature attracted you, then the enhanced return policy is a form of cc customer acquisition, and credit cards are a monster source of income to retailers and the partner issuing bank.
Every once in a while I see a suggestion that using a return policy is unethical, or at least borderline unethical. Personally I don't agree with this. I generally think the retailers are sophisticated, competent business people who set up their policies knowing the pros and cons, risks and rewards. To take them up on it is no less ethical than taking a tax deduction that the IRS allows.
Though I do agree that examples like the one of the guy "renting" the carpet cleaner that he had not intention of keeping is pushing it. But again, the retailer knows a small % of people will do things like that and their financial guys have built an allowance reserve into their financials for it, kind of like a bad debt allowance (not that it makes it okay for the ill-intentioned customer to do so). A tough return policy might win the retailer some nickels but lose them dollars.
How many successful retailers (not mom & pops) do you know that have tough return policies?
Amazon has now made it this easy - on many items, you don't even have to repackage the item to send it back, you have the option of simply taking it to the UPS store unpackaged and show a QR code on your phone and they take it from there.