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Electronic Markets

, Volume 27, Issue 4, pp 341–350 | Cite as

Effectiveness of product return-prevention instruments: Empirical evidence

  • Gianfranco Walsh
  • Michael MöhringEmail author
Research Paper

Abstract

The convenience and ease of online shopping reduce consumers’ risk perceptions, which encourages the continued growth of online retailing but also may force online retailers to deal with expensive and excessively high product return rates. Despite efforts by e-commerce management practitioners and scholars to identify determinants of customer product return behavior, scarce research investigates the effectiveness of instruments designed explicitly to reduce customers’ actual return rates. Drawing on risk theory, this article tests the influence of three important instruments on product return prevention. Three separate field experiments among customers of a well-known European online retailer reveal, unexpectedly, that the use of a money-back guarantee increases product returns, whereas product reviews decrease the product return rate. The provision of free return labels has no influence on customer product return behavior. This article concludes with some managerial and theoretical implications of these results.

Keywords

E-commerce Money-back guarantee Online shopping Prevention instruments Product returns Product reviews 

JEL classification

L81 M31 

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Copyright information

© Institute of Applied Informatics at University of Leipzig 2017

Authors and Affiliations

  1. 1.Wirtschaftswissenschaftliche Fakultät, Lehrstuhl für Allgemeine Betriebswirtschaftslehre / MarketingFriedrich-Schiller-Universität JenaJenaGermany
  2. 2.Munich University of Applied SciencesFaculty of Computer Science and MathematicsMunichGermany

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