According to a UPS survey (PDF), free return shipping is the most important factor contributing to a positive returns experience in ecommerce. Of consumers globally, 85% strongly feel that the retailer should pay for the return of an item that was wrong, poor-quality, didn’t match the description or arrived later than promised.
The benefits of offering free return shipping are clear: customers love it, expect it, and are more likely to shop with you again. But the downside is just as clear:
It’s expensive.
It can encourage return fraud.
If you sell a product category where free returns are increasingly the norm, like fashion, you will have to carefully weigh up the pros and cons. It will help you keep up with competitors, but might end up costing more than it brings in from additional sales.
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One option is to have selective free returns. You can segment your policy depending on the product category, price point, and more. Free returns just for higher-value products with larger profit margins might make sense, but not for low value products that only have a dollar or two of profit in the first place.