Return policies for online clothing retailers - A study of the return policy leniency and the importance of return policies to retailers and consumers

Abstract

Problem discussion and objective: Clothing product returns have become a real challenge in today's world as more consumers are experiencing online shopping, replacing the traditional physical shopping experience. In order to deal with this challenge, online retailers are in great need to take advantage of their reverse flow using efficient return management strategies. However, something that is usually underestimated, is the importance of return policies not only from a company‟s perspective but for the consumer behavior as well. This research will aim to qualitatively explore the role and importance of return policies for clothing brands in Europe, while also trying to explore the consumer perception towards return policies and product returns. Last but not least, the study will also try to categorize the return policies that clothing brands and online retailers state to their websites, based on how lenient they are. Methodology: A mixed method approach was decided as most appropriate in order to conduct the research. The first stage will focus on the websites of major brands and retailers where a content analysis will be conducted based on leniency characteristics. The second stage of the research will focus on the consumer perception where an online survey questionnaire was handed to people with online shopping experience. The third and final stage of the study will focus on the companies themselves where a business survey about the importance of return policies was handed via online or face to face interviews with people inside those firms Results: The results of the first stage and the content analysis indicate that leniency characteristics directly or indirectly affect the gatekeeping in a reverse logistics framework. Additionally consumers are usually driven by return costs when returning a product back to the retailer while aspects such as communication and complexity are also important. Lastly return policies are crucial for the retailers and brands in order to attract and retain customers, while they implement different strategies based on the challenges they face with returns.