Online Retailers Are Rethinking Their Generous Return Policies
When e-commerce was still fairly new, lenient return policies were used to overcome consumers’ doubts about buying online. Now, most consumers don’t need such reassurance to shop e-commerce sites, and the rising costs of returns are making retailers rethink those policies. E-commerce return rates are up 95% from five years ago, costing the industry billions.
The new normal has set off a costly and vicious cycle that even Amazon can’t withstand — alongside companies like Nordstrom and LL Bean, the e-commerce giant has tightened up its policies.