Product Returns - Business Administration, esp. Marketing and Value Creation

Product returns - instruments for reducing product returns in online retail

Online retailers, such as Zalando or AboutYou, are confronted with product returns of up to 60%. From a retailer's perspective, product returns are a double-edged sword. On the one hand, generous regulations can reduce customer uncertainty when buying online and increase the likelihood of purchase and customer satisfaction. On the other hand, product returns cause considerable costs for retailers and the environment, e.g. for shipping, packaging, preparation, etc. Due to the importance of product returns, online retailers are continuously looking for suitable tools to reduce the number of product returns without compromising the customer relationship. As part of our research, we analyse the effectiveness of different instruments for reducing returns in order to provide concrete design tips for online retailers.

Research questions

How do product returns affect customer lifetime value?
Which instruments are suitable for reducing product returns without compromising customer satisfaction?
Can appeals help to reduce product returns in online retail?
Does the return rate differ depending on the payment method used (purchase on account versus direct debit)?

Publications

Garnefeld, I.; Böhm, E.; Feider, L. (2017). Managing the necessary evil: Can payment methods reduce product returns, 2017 Winter AMA Conference Proceedings, Orlando, FL. (honoured with Best Paper Award)
Garnefeld, I.; Böhm, E.; Feider, L. (2016). Retourenmanagement zur Steigerung des Kundenwerts, in: Günther, B.; Helm, S.; Eggert, A. (eds.) Kundenwert: Grundlagen - Innovative Konzepte - Praktische Umsetzungen, 2nd edition.
Feider, L.; Garnefeld, I.; Böhm, E. (2015). Threatening customers not to return - An effective strategy for online retailers? Proceedings of the 44th EMAC Annual Conference, Leuven.
Garnefeld, I; Münkhoff, E.; Raum, K. (2013). Threat and normative appeals to reduce product returns in online retailing - An effective marketing practice?, Proceedings of the 42nd EMAC Annual Conference, Istanbul.