Recent reports that followed earnings calls from several large retailers–including but not limited to Gap, American Eagle Outfitters, Target, and Walmart–suggested they’ll offer a simple solution to combat excess inventory: refund customers for items they want to return, and let them keep the items, too.
It’s called returnless refunds, and while some e-commerce trailblazers have been implementing it for a few years now, the supply chain panic-driven surplus of certain items is propelling some of the biggest store chains to follow suit. A new study, from my company, Dotcom Distribution, of 1,150 consumers across the U.S. reveals this tactic often causes a halo effect resulting in positive brand sentiment and return customers. But you don’t have to be a big box retailer to execute or benefit from this strategy.
