What: Forbes questions the future of return policies now that their cost is skyrocketing.

Why it is important: There is neither a one-size-fits-all solution nor even one known answer to date on how to address the rising costs of such policies, apart from making sure that customers pay more attention when placing their orders. This is where data and tech might be helpful.

Forbes reviews the thorny question of 100% satisfaction guarantee policies in the US, where no-questions-asked returns became a common currency on the market. This has become an increasingly painful question with the rise of e-commerce, with some retailers even paying for the privilege of customers shipping back their items.

However, this might be coming to an end, as the related costs are too high: Kohl’s is no longer paying for return costs, LL Bean, Dillard’s, J.Crew, REOI and Zara even charge customers who decide to return items. Some are even thinking about writing off on the goods that customers want to return, instead of taking them back.

Cost is the main issue: is represented 16,6% of total US sales last year and $751billion (to be compared with 10,6% and $428bn in 2020), and this figure might even be underestimated, as it needs to take into account hidden costs.

Retailers are therefore in a difficult position, not willing anymore to sacrifice their already thin margin to provide a service that customers take for granted. Nudging might be one of the solutions, thanks to the help of tech, using data as a way to influence customers’ behavior (and make sure they buy the right size or color). One thing is for certain, it will not be easy anymore to return items in the future.

Are the 100% satisfaction guarantee policies a thing from the past?