RWRetailWire
Back to Discussions
DISCUSSION

Is Free Return Shipping for Online Orders Next?

Written by Tom Ryan

According to a recent survey, 88 percent of respondents rated free return shipping as important, or very important when making a purchasing decision.

The high results aren't so surprising since the survey came from freeshipping.com, a subscription based shopping program specializing in free shipping offers. Even further skewing the findings, the respondents were 314 of freeshipping.com's members that had only joined the group since, presumably, they want free shipping.

Tom Caporaso, president and chief operating officer of FreeShipping.com, nonetheless, told Multichannel Merchant that brick & mortar stores clearly have a competitive advantage by being able to offer in-store returns for online purchases. E-tailers offering free returns are likely to retain customers "since an unexpected complication with their order becomes far less complicated, and fosters goodwill when the merchant picks up the cost of getting it right."

He did agree that site-wide free shipping can be challenging to "justify economically." But by offering free shipping to a select group of consumers, "companies can strike a balance between fostering goodwill with their best customers and ensuring repeat purchases," said Mr. Caporaso.

A scant few online retailers offer free returns. Zappos has a well-known free-return policy, believing it provides an impetus for online browsers to try items. Competitors Piperlime and shoebuy.com also offer free returns. But most e-commerce sites only appear to offer free returns if the return was their fault.

Here are a few return policies found by RetailWire:

  • Amazon.com's return policy states, "If you return an item using the return label provided in the Online Returns Center and the reason for return is not a result of our error, the cost of return shipping will be deducted from your refund." Free returns are also not covered under its Amazon Prime program.
  • Overstock.com likewise offers a refund covering the full cost of the merchandise and shipping charges if the return is "a result of our error or defective product." If the item is returned unopened within 30 days of delivery, Overstock refunds the full cost of the merchandise minus the original shipping charge and actual return shipping fees.
  • Walmart's return policy states, "If there is an error on our part related to your order, we will issue a credit for your order and any applicable shipping and gift-wrapping charges." It also emphasized that any online purchases can be returned to any store for free within 90 days.
  • Best Buy encourages consumers to "avoid shipping charges and receive a refund more quickly by returning online orders to any Best Buy store within the United States." It advises returnees forced to mail to use UPS ground or insured USPS to ensure proof of delivery.
  • Nordstrom takes $6.00 off the refund for online buyers returning using its prepaid label while encouraging consumers to bring the packing slip and credit card to any of its stores to avoid shipping charges.
  • Macy's Elite & Platinum cardholders get free returns by mail on macys.com purchases.

 

Discussion Thread0