Retailers who make it difficult to return goods face backlash from customers

In 2018, LL Bean accomplished its centennial yr “lifetime” return policywith returns limited to 1 yr after purchase and receipts required. The end of this popular policy sparked a backlash from several customers file lawsuits.

It also inspired my team of operations management researchers to check how customers react when retailers tighten their return policies. Our most vital insight: Regardless of whether or not they continuously or rarely return purchased products, consumers have objections – unless retailers explain why.

I work with a group from Researcher investigate Product Return Policy and the way they impact consumers and retailers.

As we explained in an article published within the Operations Management JournalWe designed experiments to analyze whether and why restrictions on return policies annoy customers. We also wanted to know what retailers can do to reduce backlash after making it tougher for purchasers to return goods.

We conducted three experiments through which we presented scenarios to 1,500 U.S. consumers who played the role of loyal customers of a fictional retailer. We examined their reactions to the restrictions of the fictional retailer's return policy, comparable to: B. charging a 15% restocking fee and limiting open-ended return periods to 365, 180 and 30 days.

Participants' willingness to buy from the fictional retailer decreased after it scaled back its long-standing lenient return policy. They also said they’d change into less willing to recommend the retailer.

This happened because customers began to distrust the retailer and its ability to supply quality service. The stricter the restriction, the stronger the backlash. Even those consumers who said they don't typically return products often responded negatively.

When the fictional retailer announced its latest, stricter returns policy through official communications channels and provided a justification, there was less backlash. Consumers felt the changes can be more justified if the retailer increased “Reciprocate abuse“, where customers return used products, or the high costs of processing returns.

You might think that the return might be tougher and expensive drive away some buyers. Our research shows that the priority is justified and explains why. It also shows how communicating return policy changes directly with customers can assist prevent or reduce backlash against retailers.

Why it matters

Americans returned one value of products An estimated $890 billion to retailers in 2024. There is often a price to processing a single item $21 to $46. Most of those goods leads to landfills.

The rise of e-commerce and other technological changes have contributed to this trend. Another factor is the convenience with which consumers can return items long after purchase and receive a full refund.

Many other retailers besides LL Bean have abolished their long-standing lenient return policy. For example, during the last decade, Macy's, a department store chain, and Kohl's, a significant clothing chain, have shortened returns timelines.

Macy's limited its open returns window to 1 yr in 2016, expanded it to 180 days in 2017 and to 90 days in 2019. In 2023, returns were not accepted after 30 days. Kohl's had no cut-off date on returns and would accept returns until 2019. Then a deadline of 180 days was introduced. Others, like fast fashion giants Zara and H&M, now charge their customers fees Fees when returning goods.

However, research shows that that is the case Customers value a no-questions-asked return policy and see them as an indication of quality service. And if these agreements change into the industry standard, customers may change into indignant if retailers don't comply with them.

Interestingly, most retailers which have limited their policies haven’t informed their customers directly. Instead, her silently updated the brand new guidelines on web sites, store displays and receipts. Although it could seem advisable not to attract attention to bad news – since most customers wouldn’t notice the changes that way – Dozens of threads on Reddit reports about these changes suggest that this isn’t all the time the case.

What isn’t yet known

We focused on restrictions on refunds and the way long customers can return goods after a purchase order. Other restrictions, comparable to retailers barring heavily discounted items from returns, may be value investigating.