If you’re thinking of ordering that dress in two sizes and returning the one that doesn’t fit, you may want to think again.
Many online retailers are tightening their return policies after years of making it as convenient as possible for customers to buy, try and return unwanted items. But that convenience comes at a cost; many returned products can’t be sold at full price, forcing companies to absorb the time and money spent on processing returns.
Now, stores are cracking down. Beauty retailers like Ulta and Sephora have shortened their return windows from 60 days to 30, and some clothing stores have begun charging a flat fee to return or exchange an item.
Serena Hagerty’s research focuses on consumer behavior. (UVA Darden School of Business photo)
These changes may affect as many as 85% of American consumers, including those gearing up for Cyber Monday deals, according to the data platform Statista.
UVA Today talked to Serena Hagerty, an assistant professor in the University of Virginia’s Darden School of Business, to learn where this crackdown on returns came from and whether there will be any backlash.
Q. When did return policies first become widespread in retail?
A. Return policies have been around for a long time, but became more common with the rise of department stores in the mid-20th century. As more of these stores began competing for customer loyalty, return policies were an opportunity for them to improve the shopping experience, gain trust and raise customer satisfaction. At the time, however, these policies had limitations, such as proof of purchase, limited return windows or offers of in-store credit only.
Q. What led retailers to adopt flexible and consumer-friendly return policies?
A. The generous return policies we see today are a result of the rise of e-commerce and online shopping. When e-commerce was introduced in the early 2000s, many consumers were reluctant to purchase products they were unable to try on or see firsthand. Online retailers had to find a way to provide that trialability for consumers, or at least mitigate the risks of purchasing something without holding the product first. More generous return policies that offered extended return windows, cash refunds instead of store credit, and more flexible proof of purchase requirements quickly became the norm.
