Different Strategies for Different Channels: Influencing Behaviors in Product Return Policies for Consumer Goods

Abstract

One more time the online channel differs from the offline one. Our study on the product return strategies in the retail industry shows that even if more expensive for online retailers, product return policies are more generous and perceived as lenient by consumers. Our measures were collected in the Italian jeans retail industry, with a comparative study done on firms active on both channels and representing more than 50% of the overall industry sales. The impossibility to serve the customer at a distance and the need to strategically boost online sales are becoming a serious trap for online retailers.