Imagine Not Being Allowed to Return an Item to Avoid the Buyer’s Remorse
Retail Return Windows are convenient insurance in case you decide you don’t want something purchased. However, when you are at the checkout, it is probably best if you pretend you cannot return it.
As personal finance site Becoming Minimalist explains, knowing that a store will accept returns can actually make impulse buying easier. “If I don’t like it, I can just return it,” we tell ourselves. And why not? However, the longer we keep things at home, the more likely we are to keep them for ourselves. You are now stuck with something that you regret buying, primarily because you relied on that long return window to make up for your poor initial decision. This can be enough that some stores with exceptionally long take-back windows actually have less revenue than stores with shorter windows:
In other words, the longer the allowed time frame for returning an item for a full refund, the less likely it is that consumers will return that item. The very characteristic that makes the return policy appear to be of great benefit to the consumer is in fact a great benefit to the seller.
How could this happen? Couldn’t the opposite be true? Obviously not. The longer a customer is allowed to keep an item before returning it, the more likely they are to simply keep it.
Of course, there is nothing wrong with using the return window when needed. However, if you are buying something that you are not sure about because you know you can just return it later, you are probably better off not buying it. The longer this item stays in your home, the less likely you are to take it back at all.
How Return Policies Drive Costs (And Reduce Returns) | Become a Minimalist Through Rockstar Finance