In the dynamic landscape of e-commerce, where convenience often reigns supreme, the practice of returning purchased items is a familiar pain point for both consumers and retailers. Recent studies reveal a striking statistic: one in every five online purchases is returned. This high return rate presents a multifaceted challenge for retailers, as the revenue recouped through reselling these returned products frequently falls short of offsetting the logistical and operational costs tied to processing returns. The traditional return model, burdened by shipping, inspection, restocking, and potential markdowns, exerts considerable financial pressure on companies striving to maintain profitability in an increasingly competitive market.
In response to these challenges, a novel approach known as “returnless returns” has gained traction among leading retailers. This strategy, wherein customers receive refunds without the requirement to physically return the purchased items, represents a significant departure from standard practice. By allowing consumers to “just keep” the product, retailers sidestep the often-costly reverse supply chain process. This shift is not merely anecdotal; empirical data from a 2023 survey involving over 500 retail executives demonstrates a substantial uptick in the adoption of returnless returns—from 26 percent usage year-over-year to 59 percent. This rapid embrace signals a transformative trend reshaping return policies across the retail sector.
The impetus behind returnless returns is frequently attributed to cost reduction. However, pioneering research from the University of Notre Dame’s Mendoza College of Business reveals a nuanced dimension: beyond economic savings, this strategy can engender enhanced brand support and customer goodwill. Assistant professors John Costello and Christopher Bechler spearheaded an extensive investigation, culminating in their forthcoming article titled “Just Keep It: When and Why Returnless Product Returns Foster Brand Support,” slated for publication in the Journal of Marketing Research. Their groundbreaking work sheds light on the psychological and social mechanisms by which eliminating return mandates fosters deeper consumer-brand relationships.
Through a rigorous series of nine diverse experiments spanning laboratory settings, field studies, and online platforms, Costello and Bechler established compelling evidence that returnless returns motivate consumers to favor brands more strongly. Customers who receive refunds without return obligations are not only more inclined to continue purchasing from the brand but also exhibit a higher propensity to share positive evaluations and endorsements within their social networks. These behavioral shifts indicate a potent form of brand loyalty catalyzed by the perceived generosity implicit in returnless policies.
Critically, the effectiveness of returnless returns in amplifying brand affinity is contingent upon several factors. The research highlights that brand support surges particularly when customers are not required to furnish proof validating product issues, when the return decision is framed as tailored to the individual’s unique context, and when the brand communicates motives that prioritize consumer experiences and, importantly, environmental concerns. An additional insight reveals that encouraging customers to donate returned products exacerbates the positive brand perception. This donation suggestion positions consumers as collaborators in a socially responsible initiative, reinforcing a virtuous cycle of goodwill and brand warmth.
Contrary to prevailing media narratives and initial assumptions held by retail professionals—who primarily considered cost management as the driver of returnless return policies—the Notre Dame study elucidates a more complex interplay. In fact, the boost in brand support generated by these policies can, in certain instances, exceed the support garnered from consumers who are satisfied with products and therefore forgo returns entirely. This counterintuitive phenomenon underscores the psychological impact of perceived benevolence and personalized treatment. The returnless policy engenders a sense of generosity from the brand that heightens customer satisfaction beyond baseline gratification.
Moreover, the study delves into the comparative analysis of different implementation models for returnless returns. Some brands, including Chewy and Bombas, adopt a blanket policy applying uniformly across all products and customers. Others, like Amazon and Walmart, exercise discretion, deploying returnless returns selectively on a case-by-case basis. Surprisingly, and against conventional expectations, the research finds that selective application yields stronger brand affinity than blanket policies. This observation is attributed to the personalization effect—customers receiving individualized consideration perceive the interaction as warmer and more human, rather than mechanized and transactional.
This perceived human touch is a crucial variable. When customers engage with real agents who communicate empathetically, it fosters increased emotional connection with the brand. Automated processes, while efficient, lack the relational depth that cultivates brand warmth. The study posits that digital interactions infused with human-like elements bolster not only the acceptance of returnless returns but also encourage long-term consumer loyalty. This insight is particularly valuable in an era where many customer touchpoints have become digitized and impersonal.
Effective communication emerges as another significant strategy for maximizing the positive impact of returnless return policies. Brands have latitude in framing their rationale—some may opt to highlight cost containment or environmental sustainability, whereas others could withhold explicit reasons. However, empirical findings suggest that messages centered on customer-centric motives substantially enhance perceived brand warmth and loyalty. Statements emphasizing a company’s commitment to improving customer lives and streamlining the return process resonate deeply, providing consumers with a sense of valued partnership rather than mere transactional exchange.
For instance, one study within the research employed a customer-focused narrative: “When managing returns, our primary goal as a company is to make our customers’ lives better. With this in mind, there is no need to return the items in question to receive your refund. We appreciate your business and want to make this process as seamless and positive as possible for you, so please do whatever you want with these items.” Such messaging not only clarifies policy but also humanizes the brand, converting a logistical necessity into a customer experience advantage.
The implications of these findings extend far beyond the logistics of returns management. For firms designing or revamping return policies, comprehending the psychological drivers of brand support is paramount. Returnless returns, when implemented thoughtfully, represent more than a cost-saving maneuver; they are strategic tools for cultivating differentiation and emotional resonance with customers. These policies can mitigate the negative perceptions historically associated with returns hassle and instead elevate the brand narrative to one of trust, generosity, and shared values, thereby creating enduring competitive advantage.
In an industry where consumer expectations and behaviors continue evolving rapidly, embracing innovative approaches to traditional pain points such as product returns is crucial. The University of Notre Dame study illuminates how intertwining operational pragmatism with behavioral insights yields superior outcomes. By eschewing rigid return mandates and adopting empathetic, transparent communication, retailers can transform a typical source of friction into a catalyst for enhanced brand loyalty and advocacy, making the customer’s journey smoother and inherently more positive.
As e-commerce expands and the volume of returns escalates—with consumers increasingly seeking flexible, hassle-free experiences—returnless return strategies offer a compelling pathway forward. Retailers who leverage the intrinsic psychological benefits elucidated by this research stand to gain not only immediate cost efficiencies but also a loyal customer base empowered by goodwill and strengthened by customized, human-oriented service interactions. The future of returns is being reshaped not just by supply chain logistics but also by the power of empathy and trust in consumer relationships.
Subject of Research: Returnless product returns and their impact on brand support and consumer behavior.
Article Title: Just Keep It: When and Why Returnless Product Returns Foster Brand Support
News Publication Date: 1-Jun-2025
Web References:
https://mendoza.nd.edu/mendoza-directory/profile/john-costello/
https://mendoza.nd.edu/mendoza-directory/profile/christopher-bechler/
https://mendoza.nd.edu/
https://journals.sagepub.com/doi/10.1177/00222437251337723
References:
Costello, John, and Christopher Bechler. “Just Keep It: When and Why Returnless Product Returns Foster Brand Support.” Journal of Marketing Research (forthcoming, 2025).
Keywords: Returnless returns, e-commerce returns, customer loyalty, brand support, consumer behavior, retail strategy, return policies, brand warmth, customer experience, operational efficiency, digital interaction, emotional connection
