How an easy returns policy boosts consumer confidence

A few years ago, online retailers feared that making returns easy would only encourage customers to over-order and return what didn’t fit or what they didn’t like. But a funny thing happened on the way to the Post Office--easier returns increased customers’ confidence in what they were ordering and didn’t result in over-ordering, says David Ellin, senior vice president of sales and marketing for Innotrac Corp., fulfillment services provider.

In fact, retailers have come to believe that easier returns are important enough to online success that a larger number are including return labels with orders to make it easy for customers to send back products that don’t fit or aren’t what they expected. “We are seeing a trend for more companies to provide integrated return labels with the package,” Ellin says.

Duluth, GA-based Innotrac, which operates Coca-ColaStore.com and provides fulfillment services for Nordstrom Inc. and other companies, handles returns processing, not only accepting the product back but also refurbishing or disposing of products. It provides returns services that require customers to obtain a return authorization number as well services that simply permit the customer to ship the product back. One measure of the degree to which online retailers have embraced returns is that many that operate chains are permitting returns to stores. “Return rates have not gone up substantially,” Ellin says. “Customers have started trusting online retailers more.”