How is returns management differentiated between click-and-mortar and pure play companies?

Abstract

The emergence of e-commerce and returns management has not only provided a wide selection of corporate opportunities, but it has also come with new obstacles that challenge competitive objectives, goals and strategies of businesses. The following thesis aims to distinguish returns management processes between click-and-mortar and pure player companies. In addition, create an understanding around how customers value delivery- and return policies and processes. The thesis seeks to answer these questions using qualitative and quantitative data from external sources, along with our own empirical results from interviews and surveys. The key findings of the research are that, firstly, returns management is a dilemma for all types of companies, regardless of distribution system. However, there are certain advantages and disadvantages that click-and-mortar and pure player companies experience differently. Click-and-mortar firms tackle a more complex network due to parallel flows of products and services. Despite this, such firms can benefit from having several delivery- and return options for their customers, for instance, using physical retail space. Pure player companies, on the other hand, only manage a single distribution channel, hence allowing a greater collection of consumer data and thereof, a deeper understanding of return flows and customer behavior. Additionally, our findings suggest that customers prioritize the delivery- and return options that are free of charge over the alternative that is most desirable and convenient. This indicates that the price of delivery- and returns weighs heavier than comfort.