Assurz.com tests refund guarantee program for online shoppers
A program offering 100% refunds to subscribers for returns of any online purchase is getting a trial run through the end of January. Assurz.com guarantees a full refund on any product bought online if a retailer can’t or won’t return or exchange merchandise in a manner satisfactory to the customer, says David Andrews, a marketing consultant at Assurz.com.
In the test, limited to a few hundred shoppers, customers paying a $7.95 subscription fee get all their money back if they decide to return any item purchased in December from an online retailer. Assurz covers the purchase price, tax, shipping and re-stocking fees and provides packaging materials if needed. Subscribers have until the end of January to return packages under the test.
When the Assurz system is rolled out, consumers will be able to sign up for a subscription at Assurz.com. Details on pricing are still being worked out, but shoppers will be able to buy an annual subscription priced in the low teens, Andrews says. The guarantee also will be available on a per transaction basis, similar to extended warranties sold by retailers on appliances.
Under the Assurz system, retailers also can offer the guarantee to customers on a per transaction basis or bundle it in with a service they already sell, Andrews says. Those retailers can negotiate with Assurz what percentage of the refund they will pay on a returned item.
Returned products not accepted by Assurz-affiliated retailers or retailers not participating in the program will be liquidated in a secondary channel so they don’t compete head-on with merchants, Andrews says.
Assurz believes retailers can benefit from the program because consumers may be more comfortable shopping online if they know they can return a product for a full refund, Andrews says. “The benefit is that consumers know they’re protected wherever they go,” he says.
Assurz.com founder CEO Steve Hoffman has had previous experience with online retail and payment systems. He was CEO of CeINX, an electronic payments company in the telecommunications industry, and led the establishment of one of the first online payment systems at payments processor First Data Corp.
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