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Marketing In Asia > Blog > Business > Economics > Free Returns: A Bittersweet E-Commerce Love Story You Can’t Resist
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Free Returns: A Bittersweet E-Commerce Love Story You Can’t Resist

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Last updated: 2023/05/08 at 3:03 PM
Eshita
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7 Min Read
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In the wonderful world of e-commerce, where everything is just a click away and delivered to our doorstep, we have been blessed with the gift of free returns. Ah, the sheer joy of buying stuff we may or may not need, knowing we can return it without any consequences – truly the pinnacle of modern consumerism. But alas, in 2022, the e-commerce growth slowed down, and annoying factors like inflation, increased return rates, and higher freight and labor costs began to ruin the party. Now, brands are (gasp) considering charging customers for returns! The audacity! Let’s take a sarcastic yet empathetic journey to discuss whether brands should stop offering free returns, using examples, data, and facts from around the world, including India, to highlight the absurdity and the real concerns at hand.

The “Fabulous” Perks of Free Returns

  1. The Confidence Booster

Online shopping can be a gamble. Will that dress actually fit? Is that gadget as amazing as it claims to be? Free returns act like a security blanket, reassuring customers that they won’t be stuck with something they don’t want. And just like that, trust in the brand is built – or so they say. After all, who needs genuine connections with customers when you can just throw free returns at them and call it a day?

Take Myntra, one of India’s leading online fashion retailers, for example. They offer a 30-day return policy, allowing customers to buy clothes, try them on, and send them back if they don’t fit or meet expectations. It’s a fantastic way to build trust and encourage shopping sprees, right?

  1. The More, The Merrier

Why buy one when you can buy ten and return nine? That’s the beauty of free returns. It encourages consumers to indulge in larger purchases, knowing that they can easily return items that don’t meet their expectations. This can lead to higher revenues for online retailers, making it seem like the perfect solution.

Consider Flipkart, another popular Indian e-commerce platform. They offer easy returns on various products, which not only encourages shoppers to buy more but also fosters a sense of loyalty to the brand. It’s all about making the customer feel like royalty, regardless of the consequences.

The “Dreadful” Downsides of Free Returns

  1. The Resource Drainer

Free returns, while great for customers, can put a significant strain on resources. The added costs of shipping, handling, and processing returns can be quite burdensome, especially for smaller businesses and startups trying to make a name for themselves in the cutthroat world of e-commerce. But who cares about those pesky financial burdens, as long as the customers are happy, right?

Also Read: Eco-Chic or Just a Gimmick? The Reality of Sustainable Fashion Exposed

In India, small businesses selling on e-commerce platforms often have to bear the brunt of free returns. With already thin profit margins, these businesses may struggle to stay afloat in the face of rising costs associated with returns.

  1. Environment, Who?

Returning items might seem harmless, but the process generates considerable waste and contributes to carbon emissions. The buy-try-return culture that free returns can encourage is, let’s be honest, a disaster waiting to happen. But hey, it’s not like the environment is a pressing concern or anything, right?

A 2018 study by LocalCircles, an Indian community social media platform, found that 56% of online shoppers in India returned products due to wrong size or color. The environmental impact of this return culture is significant, contributing to pollution, waste, and a larger carbon footprint.

Finding the (Im)Perfect Balance

So, should brands stop offering free returns? One solution could be striking a balance between keeping customers satisfied and addressing financial and environmental concerns. But finding that sweet spot is easier said than done.

A tiered return policy with free returns under specific conditions might be the way to go. You know, just enough to keep customers happy while pretending to care about the financial and environmental impacts of free returns.

For instance, some brands could charge a small fee for returning certain items while offering free returns on others. It’s like having your cake and eating it too (but maybe only half of it).

Let’s look at Amazon India, for example. They offer free returns on some products while charging a nominal fee for others, depending on the category and the reason for the return. This hybrid approach can strike a balance between keeping customers content and addressing the costs associated with returns.

But what about the environmental impact? Brands could invest in sustainable packaging and shipping methods to minimize the harm caused by returns. In India, companies like PaperFoam and Ecolife Recycling provide eco-friendly packaging solutions that could be adopted by e-commerce businesses to reduce their environmental footprint.

Also Read: Timeless Elegance or High-Tech Convenience? The Future of Luxury Watches Revealed

In this sarcastically empathetic debate on free returns, we’ve seen that there are some amusing yet valid arguments for both sides. Free returns can build trust and encourage shopping sprees, but they also come with some pesky consequences like financial burdens and environmental damage.

As we’ve seen with examples from India and around the world, finding a balance is key. Brands need to reassess their return policies, keeping customer satisfaction, financial sustainability, and environmental responsibility in mind.

So, should brands stop offering free returns altogether? Probably not. But they should definitely consider a more balanced approach that caters to customers while addressing the real concerns at hand. After all, we can’t keep ignoring the consequences of our actions forever, can we?

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TAGGED: Carbon footprint, Consumer behavior, Customer loyalty, Customer Satisfaction, e-commerce, environmental impact, Financial sustainability, Free returns, India e-commerce, Online retail, online shopping, Return policies, Return rates, Shipping costs, Sustainable packaging

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    Eshita Chaurasia May 8, 2023 May 8, 2023
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    By Eshita Chaurasia
    With a Post Graduate degree from NIFT and 9 years of experience, I am a skilled professional in Fashion Marketing, Brand Management, and Fashion/Retail Merchandising.
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