The Free Returns Paradox
RedWhite Apparel advertises on Facebook. You might have discovered us from one of the many advertisements we run on the social network. Currently, we're running a new campaign about how our bibshorts help you ride long distances in comfort. I always welcome comments on all ads RedWhite runs and the latest comments about our returns policy made me think more deeply about the paradox of offering free returns.
The advertising campaign can be viewed here : https://www.facebook.com/1440829892865358/posts/2559917460956590
I believe RedWhite Apparel has a balanced returns policy. It was written after years of gathering experience selling long distance bibshorts online, worldwide. In a nutshell, you can return anything purchased from us at any time as long as the item is in "as-new" condition with original hangtags attached. The policy also covers manufacturing defects that crop up during use and pre-mature wear and tear. You can read it here.
This policy is written to cover customers who purchased the wrong size, don't like the product (but kept in in saleable condition), have buyer's remorse (but kept the purchase in "as-new" condition) and those who were unfortunate enough to receive a defective item.
The policy does not offer refunds or returns to customers who purchase our long distance bibshorts, wear it, and then return it because they simply don't like it. Not liking something is subjective and a policy that covers this is non-existant in most policies of cycling clothing brands. Notable premium brands such as Assos and Rapha do not offer this (as of 22nd Jan 2020).
The RedWhite Returns Policy is written the way it is because of the Free Returns Paradox.
The Paradox goes like this :
The Free Returns Paradox is intended to offer customers a guarantee in order to build confidence and increase sales. However, because of natural human behaviour, a no-restrictions return policy often gets abused. As a result of this abuse, the previously very-generous returns policy becomes a massive cost that eats into sales. As a result, the no-restrictions policy becomes less generous. Eventually, it ends up back where it started - a returns policy with reasonable restrictions.
In order for a very-generous returns policy to work, policy abuse has to be negligible. This is definitely the case with a company as small as RedWhite Apparel. Fewer customers means fewer abuse cases. However, as a company grows and starts servicing a wider demographic, policy abuse naturally grows as well. This natural behaviour is evident when a company I personally respect a lot, Recreational Equipment Inc (REI), restricted its lifetime return policy to just 1 year.
There's actually a Reddit thread about it here. Also covered here.
I do have the stirrings of an idea for a returns policy where customers can have their cake and eat it too. REI resells used returned items at a discount on their member's only Garage Sale. I speculate that this is one way to fund their generous returns policy.
The question remains : Would you buy a used pair of returned bibshorts for 50% of the price from RedWhite Apparel?
Leave you comments below.