Commercial Product Returns

The increasing use of online shopping has escalated product returns and consequently the importance of their management. In parallel, the increasing scholarly interest on the subject is reflected in the number of publications. In such fast-growing research fields, mapping the whole research activity is useful in highlighting research areas that could provide a better knowledge accumulation in the field. With this aim, this chapter conducts co-citation and co-word analysis to identify future research directions. According to results, there is a need for future research to investigate 1) the consumer reaction when the service level received conflicts with the retailer environment (un)friendly operations, 2) the impacts of retailer return policies on their reverse logistics management, 3) the implementation difficulties of handling omni-channel returns in different organizational structures, and 4) the effectiveness of technological tools and applications used to avoid returns. This chapter also discusses the implications of COVID-19 on the commercial product returns research.

Design Principles For Retail Return Policies

Based on an analysis of prior literature on consumer behaviour and reverse logistics, this study proposes a model for the design of returns policies that includes considerations for costs, logistics requirements, and consumer behaviour. The case study investigations yielded several important findings. Product characteristic concerns seem to have a low level of importance in the decision-making process of return policy establishment. Practitioners that are responsible for creating effective return policies seem to not place great importance on either product characteristics or supply chain optimization. Using case analysis, this study explored the decision-making process of return policy creation and found that customer satisfaction and organization-specific concerns have a high level of importance in the returns creation process. The results indicate that the current models and frameworks for return policies need to be re-examined, in order to reflect the practical realities of the environment and constraints in which organizations operate. A review of the literature suggests that retailers consider a product's return policy a source of competitive advantage that can increase customer satisfaction and overall profitability. However, the existing research into returns policies focuses mainly on optimizing product flows and minimizing the financial cost of returns, rather than examining the inter-relationships between multiple constructs such as customer satisfaction, product characteristics, logistic constraints and consumer behaviour. This is problematic because it creates a disconnect between the considerations that the practitioners take into account and the considerations that are included in the current models for returns policy establishment. For retail organizations, the returns process can have a significant impact on costs and customer satisfaction due to the unique logistics costs and customer interactions in the returns process. Based on an analysis of prior literature on consumer behaviour and reverse logistics, this study proposes a research framework for the design of returns policies for retailers that considers the impacts of a specific return policy on costs, logistics requirements, and consumer behaviour. The study uses the proposed framework to identify, highlight, and catalog the different influences and considerations that retail and manufacturing organizations face during the creation of a return policy in the retail environment. The case study investigations yielded several important findings. First, product characteristic concerns seem to have a low level of importance in the decision-making process of return policy establishment. The study finds that practitioners that are responsible for creating effective return policies do not place great importance on either product characteristics or supply chain optimization. Second, this study found that most of the current models on return policy creation do not include customer satisfaction and organizational concerns. Using case analysis, this study explored the decision-making process of return policy creation in three retail organizations and found that customer satisfaction and organization-specific concerns actually have a high level of importance in the returns creation process. By using current models on return policy establishment and using empirical results, this study proposes a tentative theory by outlining the propositions for the design of a returns policy in retail organizations. The results of this study are based on organizational data as well as interviews conducted with persons who are directly involved in the returns process for their organization. The results indicate that the current models and frameworks for return policies need to be re-examined, in order to reflect the practical realities of the environment and constraints in which organizations operate.

Design Principles For Retail Return Policies

Based on an analysis of prior literature on consumer behaviour and reverse logistics, this study proposes a model for the design of returns policies that includes considerations for costs, logistics requirements, and consumer behaviour. The case study investigations yielded several important findings. Product characteristic concerns seem to have a low level of importance in the decision-making process of return policy establishment. Practitioners that are responsible for creating effective return policies seem to not place great importance on either product characteristics or supply chain optimization. Using case analysis, this study explored the decision-making process of return policy creation and found that customer satisfaction and organization-specific concerns have a high level of importance in the returns creation process. The results indicate that the current models and frameworks for return policies need to be re-examined, in order to reflect the practical realities of the environment and constraints in which organizations operate. A review of the literature suggests that retailers consider a product's return policy a source of competitive advantage that can increase customer satisfaction and overall profitability. However, the existing research into returns policies focuses mainly on optimizing product flows and minimizing the financial cost of returns, rather than examining the inter-relationships between multiple constructs such as customer satisfaction, product characteristics, logistic constraints and consumer behaviour. This is problematic because it creates a disconnect between the considerations that the practitioners take into account and the considerations that are included in the current models for returns policy establishment. For retail organizations, the returns process can have a significant impact on costs and customer satisfaction due to the unique logistics costs and customer interactions in the returns process. Based on an analysis of prior literature on consumer behaviour and reverse logistics, this study proposes a research framework for the design of returns policies for retailers that considers the impacts of a specific return policy on costs, logistics requirements, and consumer behaviour. The study uses the proposed framework to identify, highlight, and catalog the different influences and considerations that retail and manufacturing organizations face during the creation of a return policy in the retail environment. The case study investigations yielded several important findings. First, product characteristic concerns seem to have a low level of importance in the decision-making process of return policy establishment. The study finds that practitioners that are responsible for creating effective return policies do not place great importance on either product characteristics or supply chain optimization. Second, this study found that most of the current models on return policy creation do not include customer satisfaction and organizational concerns. Using case analysis, this study explored the decision-making process of return policy creation in three retail organizations and found that customer satisfaction and organization-specific concerns actually have a high level of importance in the returns creation process. By using current models on return policy establishment and using empirical results, this study proposes a tentative theory by outlining the propositions for the design of a returns policy in retail organizations. The results of this study are based on organizational data as well as interviews conducted with persons who are directly involved in the returns process for their organization. The results indicate that the current models and frameworks for return policies need to be re-examined, in order to reflect the practical realities of the environment and constraints in which organizations operate.

Optimal Return Policies and Micro-Plastics Prevention Based on Environmental Quality Improvement Efforts and Consumer Environmental Awareness

Consumers initiating returns online may produce secondary packaging, while most of the packages are produced by plastics. The more products are returned, the more plastics are used. Existing research indicates that the plastic packages can contribute to the micro-plastics pollution of the environment. As consumer environmental awareness (CEA) improves, more and more consumers are willing to pay extra fees to change the materials of packages from plastics to others in order to protect the environment, prompting enterprises to adjust to their return policies. In this context, this paper takes environmental quality improvement effort and the environmental coefficient as decision variables, and compares the manufacturer’s optimal decisions under with and without return policy. Our results show as follows: (1) There is a positive correlation between CEA and environmental quality improvement effort and the environmental coefficient; that is, environmental quality improvement effort and the environmental coefficient increase with an increase in CEA; (2) When CEA is high (k≤τ≤d), there is a threshold for manufacturers to invest in environmental effort. However, when CEA is low (0≤τ≤k), regardless of the return policy the manufacturer implements, its profit increases with the promotion of CEA, and when the manufacturer allows consumer returns, the relationship is more obvious; (3) The manufacturer should adopt an appropriate return policy according to the changes in CEA. When CEA is low (0≤τ≤k), the manufacturer should adopt a without return policy; when CEA is high (k≤τ≤d), the manufacturer should adopt a full refund (r=p) return policy, which is the optimal profit, and increase investment in environmental protection. From the above conclusions, we suggest that the government should increase the publicity of environmental protection, consumers should establish the awareness of green consumption, and enterprises should increase investment in environmental quality improvement to achieve sustainable development.

Customers' perceptions of returning items purchased online: planned versus unplanned product returners

PurposeThe purpose of this study is to address two issues relevant to those managing product returns: (1) how customers perceive the returning process and assessing the extent that these perceptions have on satisfaction with the organization, loyalty and word-of-mouth (WOM) and (2) are these outcomes moderated by whether customer returns were planned or unplanned?Design/methodology/approachThe data consisted of 21 semi-structured interviews (pilot study) and a quantitative survey (n = 384; main study) targeted at consumers who had bought fashion items online.FindingsQualitative insights revealed that perceptions of the returning experience are driven by monetary costs, convenience, stress and guilt. Quantitative findings showed that the returning experience explains return satisfaction for both planned and unplanned returners, and returning satisfaction explains overall satisfaction and WOM. The noteworthy difference concerns loyalty: although customers that planned to return items are more loyal to the organization, it is the unplanned returners whose loyalty can be significantly increased by better managing the returning process.Practical implicationsReturning products online is increasingly common and thus forms an important part of the customer's overall experience with an organization. Returns management can therefore drive key customer outcomes. Understanding the dynamics between the product return experience, return satisfaction and customer outcomes will help practitioners design and implement more informed returns management strategies. Measures are also presented that assess the cognitive and emotional aspects associated with returning products.Social implicationsReturning products is an increasingly important challenge for online retailers. Understanding what kinds of returning behaviors occur allows companies to design and execute better informed decisions to manage this phenomenon, not only for the sake of firm performance but also for societal and environmental benefits – the triple bottom line.Originality/valueWhile scholars have investigated the relationship between return policies (e.g. free vs fee) and profitability, no prior literature has examined the returning experience: how consumers perceive the returning process; motivations for their returns (whether returns were planned or not) and subsequent customer outcomes.