Slightly OT: How Much Do Free Returns Cost Us?

[-MIKE-]

That's not what the article is talking about and you know it.

[Scott Lurndal]

Not sure why you're so eager to defend "buy stuff on spec then returning in a non-salable form".

Forget the article and go to the source.

[Ed Pawlowski]

And you know there is a real cost for returns and consumers are paying it.

Retailers face a major challenge. Consumers expect free returns, and inconvenient returns deter 80% of shoppers according to a ComScore study. However, retailers are struggling to offer this because they can?t absorb the cost into their bottom line.

[-MIKE-]

Again, I'm not defending it and you can't point to where I did. You're using a logical fallacy.

Being appreciative of, and in good faith, participating in a company's return policy does not mean one condones nor is complicit in the actions of those who seek to abuse those policies.

Do you itemize on your tax returns? Does that mean you defend those who cheat on their taxes?

[-MIKE-]

Thank you for providing articles that are relevant to the topic. It's a new world, the horses are out of the barn and I don't see free and easy returns going the way of the wagon wheel any time soon. It's so ubiquitous now that, as one article states, it's very tough for a retailer to *not* offer it.

I never said there wasn't a cost. I said there's not much of a real cost to the buyer that we notice, since most of these places have lower prices than places that don't offer free returns, even if that lower price is inflated to absorb those other factors.

I don't know if the cost to the corporations is enough for them to do anything severe as far as changing their policies. Profits for these stores is a funny game. I spoke to a HD manager once about lowering the price of some lumber to price match Lowes. He said, "Oh, are they lower than that? Sure, no problem, I'll go even lower." I said, "Well, that was easy." He told me that they already lose money on most lumber. They keep prices down to attract costumers who are going to buy the stuff they do make money on.

That surprised me, but retail is a funny game. This was several years ago, and i know lumber is a commodity of sort, so I don't know if it's a game they still play.

[Leon]

FWIW the cost of returns is built into the price to begin with. It is one of many costs of doing business.

[Leon]

FWIW the cost of returns is built into the price to begin with. It is one of many costs of doing business.

[Keith Nuttle]

That is what this thread has been trying to get people to see. Like any of the component costs that are factored into the price of an item; if the cost of the component increases, the the cost of the item increases. OR if the cost of returns component goes up, then the price of the item goes up.

The more returns the higher the component of the price, the higher the selling price. Simple economics.

[Ed Pawlowski]

Sure, but it is still a cost borne by the consumer. If returns were restricted, they could sell at lower prices.

It is nice that a person can buy 6 Widgets, take them home to see what looks best and take 5 back. Nice for them, but you and I are paying for that convenience. If they charged a $1 fee for every returned item, few customers would do that.

[-MIKE-]

True. And those customers would go to the store that offers that service to attract and keep more customers. And the store that charged a buck for it would soon be out of business.

[DerbyDad03]

Fact is, not only do most retailers - online and off- offer free returns, many are now *advertising* "try before you buy". Granted, at the moment it's mostly related to clothing, footwear and glasses, but I'll bet it (the advertising) spreads to other products, mainly because it's happening anyway by way of the "free returns"

Amazon Prime Wardrobe, BlackCart, Topshop, Warby Parker, just to name a few .

Before our recent vacation SWMBO and I used Amazon Prime Wardrobe to buy some water shoes. We each ordered 3 different styles in 2 different sizes. We each found a pair we liked and returned the rest. Each order of the pair s came in a single package with all the return paperwork included.

Honestly, I don't know how you would buy something like shoes or pants or glasses online without the ability to return them for free. If I go into a store, I can try on as many pairs as I like - for free. Now many online retailers are making it just as easy. And by packaging multiple items in one shipment, they are saving money on shipping, both ways. If they are going to offer free returns anyway, it makes sense for them to label it as "try before you buy" and do it as a multiple item order instead of having the consumer place six individual orders and pay 6 shipping fees "out" and

5 shipping fees "in".

[whit3rd]

It's also a part of the feedback that the store gets, that lets them know what goods ought not be re-ordered. The store NEEDS to see the returns of unsatisfactory items, to know where the problems are. A good store won't restock the unsatisfactory junk... but won't necessarily know that the diaper tape comes unstuck, unless a customer tells 'em.

I've seen/done this part of retail; it's an important part of information f low.

[krw]

Unless, of course, the store gave that buck back to the consumer.

[krw]

Not really a fair comparison.

Exactly why it's not a fair comparison. Online clothes shopping would be impossible without "free returns".

[notbob]

, I don't know how you would buy something like shoes or pants or

One has to look at the alternatives. For instance, Zappos has free return shipping on their shoes. BUT, the shoes must never show wear. IOW, no wearing the shoes outdoors. This is true for New Balance brand shoes, from Zappos (an Amazon company).

If one orders New Balance shoes from New Balance, one can wear the shoes for 30 days and and return them free, regardless of wear.

IOW, know all the facts. ;)

nb

[DerbyDad03]

Irrelevant to the current discussion.

[DerbyDad03]

Comparison to what?

Nothing is impossible. It's certainly difficult and it certainly has not been that way since the beginning of on-line shopping. There was a time that even clothes cost the buyer something to return.

And I submit that there are thousands of other products that are just as difficult to buy on-line without "free-returns". Pictures on a web page don't always tell the whole story. the whole story

[Keith Nuttle]

I question a business model where there is a built-in 30% to 40% return rate. Shipping cost alone for online sales becomes a large percentage of the cost of doing business.

As returns become more common the price either has to go up significantly, or the business will cease to exist.

It will reach a point where the retailer can sell thing significantly cheaper in a brick and mortar store than they can online even with the fixed cost of staff and building. At that point we will see a shift back to the traditional method of sales.

[Keith Nuttle]

A picture on a web page tells you nothing but the color and shape of an object. Color is questionable as it is difficult to reproduce on paper and is dependent on the color setting of the monitor and computer where the web page is being viewed.

With clothing you can tell nothing of the feel of the fabric or the quality of construction. ie width of seams, threads per inch, fabric nap etc.

With hard items; ie tools, kitchen utensils, etc. the picture tells you nothing about the balance of the item, the ease of use, and access of controls, etc. Also from a picture, you can not tell the thickness of the material used in construction. A door on the item may look fine in the picture, but in real life it may be so flimsy that it will break the first time you open it.

I bought a sailboat many years ago. From the pictures in the brochures, it looked like there was plenty of space in the cabin. People were pictured sitting on the bunks, and in the berths. In reality for an adult of my size it was very crowded, and difficult to get around inside.

[J. Clarke]

Which business model is this? Do you have statistics to support your assertion?

Your article refers to online sales sometimes having a high return rate, with clothing being the highest. This is actually very reasonable--one of the disadvantages of online sales is that you can't try it on. Don't allow returns and your online clothing business pretty much goes away--clothing sizes are not standardized--one company's size 12 is another's 11 and another's 13.