Research ArticleOpen AccessGoogle Scholar indexed
A Review on Returnless Refunds in E-Commerce Retailing: Sales through Leniency
Department of Construction and Operations Management, South Dakota State University, Brookings, SD, USA
Department of Construction and Operations Management, South Dakota State University, Brookings, SD, USA
- 1 Department of Construction and Operations Management, South Dakota State University, Brookings, SD, USA
- 2 Department of Construction and Operations Management, South Dakota State University, Brookings, SD, USA
Copy link · social · email
Abstract
Though the skyrocketing rate of product returns hurts profitability of retailers, those in e-commerce must continue to offer returns to remain competitive. Through the analysis of previous studies, we assert the positive effects of lenient return policies on a retailer’s ability to gain and retain customers. This effect is explained by the relationship between return leniency, customer satisfaction and loyalty, and purchase intentions. Further, we investigate the individual product and customer factors that affect sales performance in relation to product returns. Building upon these premises, we offer that returnless refunds induce the desired customer response and suggest a layout for future studies.
KeywordsReturnless RefundsReturn PoliciesE-Commerce RetailersPurchase IntentionConsumer Behavior
- Anderson, E. T., Hansen, K., & Simester, D. (2009). The Option Value of Returns: Theory and Empirical Evidence. Marketing Science, 28, 405-423. https://doi.org/10.1287/mksc.1080.0430
- Batarfi, R., Jaber, M. Y., & Aljazzar, S. M. (2017). A Profit Maximization for a Reverse Logistics Dual-Channel Supply Chain with a Return Policy. Computers & Industrial Engineering, 106, 58-82. https://doi.org/10.1016/j.cie.2017.01.024
- Bonifield, C., Cole, C., & Schultz, R. L. (2010). Product Returns on the Internet: A Case of Mixed Signals? Journal of Business Research, 63, 1058-1065. https://doi.org/10.1016/j.jbusres.2008.12.009
- Bower, A. B., & Maxham, J. G. (2012). Return Shipping Policies of Online Retailers: Normative Assumptions and the Long-Term Consequences of Fee and Free Returns. Journal of Marketing, 76, 110-124. https://doi.org/10.1509/jm.10.0419
- Dailey, L. C., & ülkü, M. A. (2018). Retailers Beware: On Denied Product Returns and Consumer Behavior. Journal of Business Research, 86, 202-209. https://doi.org/10.1016/j.jbusres.2018.01.064
- De Araújo, A. C., Matsuoka, E. M., Ung, J. E., Massote, A., & Sampaio, M. (2017). An Exploratory Study on the Returns Management Process in an Online Retailer. International Journal of Logistics Research and Applications, 21, 345-362. https://doi.org/10.1080/13675567.2017.1370080
- Fu, Y., Liu, G., Papadimitriou, S., Xiong, H., Li, X., & Chen, G. (2016). Fused Latent Models for Assessing Product Return Propensity in Online Commerce. Decision Support Systems, 91, 77-88. https://doi.org/10.1016/j.dss.2016.08.002
- Gronholdt, L., Martensen, A., & Kristensen, K. (2000). The Relationship between Customer Satisfaction and Loyalty: Cross-Industry Differences. Total Quality Management, 11, 509-514. https://doi.org/10.1080/09544120050007823
- Hjort, K. (2013). On Aligning Returns Management with the e-Commerce Strategy to Increase Effectiveness (Unpublished Doctoral Dissertation). Goteborg: Chalmers University of Technology.
- Hjort, K., & Lantz, B. (2016). The Impact of Returns Policies on Profitability: A Fashion e-Commerce Case. Journal of Business Research, 69, 4980-4985. https://doi.org/10.1016/j.jbusres.2016.04.064
- Huseynov, F., & Yildirim, S. O. (2014). Internet Users’ Attitudes toward Business-to-Consumer Online Shopping. Information Development, 32, 452-465. https://doi.org/10.1177/0266666914554812
- Janakiraman, N., Syrdal, H. A., & Freling, R. (2016). The Effect of Return Policy Leniency on Consumer Purchase and Return Decisions: A Meta-Analytic Review. Journal of Retailing, 92, 226-235. https://doi.org/10.1016/j.jretai.2015.11.002