A REVIEW ON RETURNLESS REFUNDS IN E-COMMERCE RETAILING: SALES THROUGH LENIENCY

Abstract

Though the skyrocketing rate of product returns hurts profitability of retailers, those in e-commerce must continue to offer returns to remain competitive. Through the analysis of previous studies, we assert the positive effects of lenient return policies on a retailer’s ability to gain and retain customers. This effect is explained by the relationship between return leniency, customer satisfaction and loyalty, and purchase intentions. Further, we investigate the individual product and customer factors that affect sales performance in relation to product returns. Building upon these premises, we offer that returnless refunds induce the desired customer response and suggest a layout for future studies.