The impact of returns policies on profitability: A fashion e-commerce case

Hjort, Klas; Lantz, Björn

doi:10.1016/j.jbusres.2016.04.064

Cited by 63 publications

(56 citation statements)

References 16 publications

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“…Lantz and Hjort [99] confirm that free returns can reduce the average value of orders. Hjort and Lantz [101] further demonstrate that the free-return policy does not contribute to retailers' long-term profitability, but repeat customers can generate more contributions. However, it is notable that some researchers (e.g., [103]) argue that even though the return policy might not increase profitability, it is still valuable for retailers.…”

Section: Area 4 Reverse Logistics In Fashion Retailingmentioning

confidence: 99%

“…Studies on the return policy between consumers and retailers focus on two aspects: the effect of the policy on customer behavior and loyalty [94][95][96][97][98], and the effect of the policy on retailers' profitability [99,100]. Most studies from the customer behavior perspective show that this type of return policy can attract more consumers and create more loyal customers [101]. For example, the return policy can reduce consumer risks, and thus increase demand [93].…”

Section: Area 4 Reverse Logistics In Fashion Retailingmentioning

confidence: 99%

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Sustainable Retailing in the Fashion Industry: A Systematic Literature Review

2017

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Although sustainability in the fashion industry has gained prominence from both business practices and academic research, retailing, a vital part of the supply chain, has not yet been fairly explored in academia. The interest in this area has increased lately, mainly due to the growing complexity within this dynamic context. Therefore, it is meaningful to conduct a systematic review of the relevant published literature in this field. This study aims to identify the main perspectives of research on sustainable retailing in the fashion industry. The content analysis results indicate that the most prominent areas in the field are sustainable retailing in disposable fashion, fast fashion, slow fashion, green branding and eco-labeling; retailing of secondhand fashion; reverse logistics in fashion retailing; and emerging retailing opportunities in e-commerce. The results from this review also indicate that there is a lack of research on sustainable retailing in the fashion industry in the developing market.

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Section: Area 4 Reverse Logistics In Fashion Retailingmentioning

confidence: 99%

Section: Area 4 Reverse Logistics In Fashion Retailingmentioning

confidence: 99%

Sustainable Retailing in the Fashion Industry: A Systematic Literature Review

2017

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“…As an alternative to the primary data methods outlined above, secondary data continues to gain popularity in the operations management field and research in the RP domain is no exception. The RP literature involves secondary data from a variety of sources, such as retailer transaction records (Hjort & Lantz, 2016;Shang, Pekgün, et al, 2017;Zhou & Hinz, 2016), rating websites (Bonifield et al, 2010;Heim & Field, 2007), and advertisements (Mixon, 1999).…”

Section: Methodological Foundationsmentioning

confidence: 99%

“…Regarding data analysis methods, our review reveals that regression and analysis of variance techniques are most commonly used. In general, secondary data studies employ regression methods, such as ordinary least squares regression (Hjort & Lantz, 2016), logistic regression (Shang, Pekgün, et al, 2017), and multilevel modeling (Rao et al, 2018). Structural equation modeling (SEM) methods are commonly used in survey and interview research (Mollenkopf et al, 2007;Powers & Jack, 2013) but also are used to analyze experimental data (Jeng, 2017;Zhang et al, 2017).…”

Section: Methodological Foundationsmentioning

confidence: 99%

“…Petersen and Kumar (2010) Secondary data Mixon (1999), Heim and Field (2007), Posselt, Gerstner, and Radic (2008), Anderson et al (2009a), Bonifield et al (2010), Zhou and Hinz (2016), Hjort and Lantz (2016), and Shang, Pekgün, Ferguson, and Galbreth (2017) Literature content Heiman, McWilliams, and Zilberman (2001) and Janakiraman et al (2016) T Wood (2001), Heim and Field (2007), Bower and Maxham III (2012), Lantz and Hjort (2013), and Hjort and Lantz (2016) Time leniency d'Astous and Guèvremont (2008) Heim and Field (2007) Scope leniency Wood (2001) and Kim and Wansink (2012) Wood (2001) Wood ( potential value of losses and gains rather than on the final outcome. With its emphasis on loss aversion, this theory provides an important theoretical lens to study cognitive and behavioral responses of customers toward return policies that typically lead to monetary losses due to low monetary and/or exchange leniency (Heiman et al, 2015).…”

Section: Theoretical Foundationsmentioning

confidence: 99%

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Taking stock of consumer returns: A review and classification of the literature

Abdulla

Ketzenberg

Abbey

2019

J of Ops Management

111

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Coincident with the rapid growth of consumer returns and their corresponding importance in the retail marketplace, academic interest in the area of consumer return policy design has significantly increased. In fact, the growth in academic publications has been tremendous, with almost half of the published works appearing within the past 6 years. The influx of new and evolving research spans across multiple disciplines and various methodologies. To provide clarity for the continued evolution of the field, we provide a comprehensive review and classification of the literature predicated on a holistic conceptual framework. The scope of the review includes all peer reviewed journal articles published prior to the end of 2018, along with any working papers cited therefrom, that specifically address (a) managerial decision‐making related to return policies or (b) consumer behavior in response to such decision‐making. Examining the state of the literature and practice on return policy design through the lens of a unified conceptual framework—a framework that spans both analytical and empirical research—reveals numerous managerial and theoretical opportunities for future research.

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The impact of free returns on online purchase behavior: Evidence from an intervention at an online retailer

Patel

Baldauf

Karlsson

et al. 2021

J of Ops Management

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Whether free returns create economic value for online retailers is a question of increasing importance. Using order‐level data from an online fashion retailer in Sweden, we investigate the introduction of free returns for customers in Denmark starting November 1, 2017, but not for customers in Sweden, Norway, Finland, France, Germany, and the rest of Europe (the control group). Using difference‐in‐differences, with and without sample matching, the introduction of free returns increased the order bill by 54.95 Swedish Krona (SEK) (9.15%), product variety per order by 0.057 (8.74%), gross margin per order by 29.90 SEK (9.71%), and returns by 0.195 items per order (7.86%). This likelihood of increased returns was generally similar across different product categories. The findings are robust to parallel trends, event studies, placebo effects, alternative control groups (with Scandinavian countries, Sweden and Norway), country‐time trends, and correlations between outcome variables. Based on back‐of‐the‐envelope calculations, the cost of offering free returns is greater than the increase in gross profit driven by free returns. Though our results show that free returns may not be of short‐term benefit, retailers must also consider the long‐term strategic implications of free returns.

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The impact of returns policies on profitability: A fashion e-commerce case

Cited by 63 publications

References 16 publications

Sustainable Retailing in the Fashion Industry: A Systematic Literature Review

Sustainable Retailing in the Fashion Industry: A Systematic Literature Review

Taking stock of consumer returns: A review and classification of the literature

The impact of free returns on online purchase behavior: Evidence from an intervention at an online retailer

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