LET PEOPLE KEEP THEIR RETURNS

Summary from the TLDR Marketing newsletter

Letting customers keep low to moderately-priced items while issuing a full refund increases repeat purchase intent and brand sentiment, making customers up to 2x more likely to buy again. Across 9 experiments, returnless returns drove 24.6% higher ratings, up to 30.1% more positive reviews, and 30% higher perceived value compared to standard return policies. The effect is stronger when it is framed as customer convenience or an environmental choice and when customers are encouraged to donate items, but it weakens if proof is required, causing 20% less positive word of mouth. The approach works best for frequently repurchased and lower-cost items, while profitability depends on category, price, and fraud controls.