I don't think it's a smart strategy, and I don't think it's going to be long-lasting. But such open return policies pose challenges for the traditional retailers. Accepting returns of items bought online creates a link between the online site and the local store that requires the company to charge sales tax at its online store. In industries such as electronics, where consumers often make decisions partially on price, having to charge sales tax can be a big disadvantage. In addition, returning items bought online to the stores often means logistical and accounting nightmares as the items have to be transferred from one distribution center to another.
Consumers expect the two to work together, especially on returns.
During the post holiday season, consumers will want to avoid the time, expense, and delayed credit associated with mailing returns back to the online merchant. Missed opportunities Traditional retailers typically have used post-holiday returns to draw consumers back into their stores. Once there, consumers can be enticed to make impulse buys or to exchange goods instead of returning them. Such policies may cause retailers to miss out on future opportunities as well, Williams said. Given a choice between an online retailer that accepts returns in its offline stores and one that doesn't, consumers will chose the former, she said.