Although generous return policies have been shown to have marketing benefits, such as a higher willingness to pay and a higher purchase frequency, counterbalancing these benefits is an increased volume of consumer returns, which presents significant operational challenges for both retailers and...

Although lenient return policies can drive sales and customer loyalty, they have also resulted in enormous returns volumes and reverse logistics costs. Online retailers often feel compelled to offer free returns, but are then faced with numerous operational challenges, ranging from accurately...