Fewer return parcels with longer return time

Author without image icon
Editorial
02 February 2016
2 min

US researchers have come up with an unusual conclusion: the longer one has the time to return the order, the less that happens. The results of the research were published in the Journal of Retailing, an American journal.

PhD student Ryan Freling, from the University of Texas in the US city of Dallas, studied many dozens of research reports for his study. His conclusion is based on 21 studies on consumers' purchasing and return behaviour. In doing so, he did not distinguish between online and offline purchases. The research reports Freling examined looked at consumer psychology, decision science and marketing.

Different elements
The American based its conclusion on different elements such as the money, effort, time to return the package, the scope of the products and whether it gave the customer money back or could only exchange. In doing so, it found that the smoother the exchange process, the more often a product was returned. This does not sound attractive to the retailer, but a smoother return process also leads to more sales and is thus used as a marketing tool.

Best choice retailer
The best choice a retailer can make, according to Freling's research, is a long return time. This choice is best because of lower return rates and higher sales. According to Freling, this is partly due to the 'endownment effect'. According to this psychological principle, the longer people hold things, the more attached they become to them. A longer return time can delay the decision to return a purchase.

Confirmation from practice
Freling's research is also confirmed in practice. For example, US electronics group 3rd Power Outlet saw the number of products returned shrink when the return time was extended from 14 to 90 days.

Editorial LogistiekProfs

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